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Fortinet (FTNT - Free Report) announced that, along with Arqit Quantum Inc. (ARQQ - Free Report) and BT Group, it has introduced a commercially accessible, integrated product for quantum-safe virtual private network (VPN) communications. The launch comes after the effective trial of quantum-safe tunnels connecting three BT locations in London, Exeter and Adastral Park in Suffolk.
The strategy of "store-now, decrypt-later" utilized by nation-states and cyber adversaries, where encrypted data is accumulated for future decryption with quantum computing, poses a substantial threat to current data and communication systems. As cyber threats advance in complexity, global organizations must ensure their ability to defend against both existing and emerging risks.
Through the novel collaborative quantum-safe VPN solution, BT customers can leverage the integration of Fortinet FortiGate Next-Generation Firewalls empowered with Arqit's NetworkSecure Fortinet adapters and Arqit’s Symmetric Key Agreement Platform.
The solution facilitates the generation and on-demand rotation of quantum-safe symmetric keys for encrypting and securing sensitive data in point-to-point VPN connections. Initially, this joint solution has been made available for customers in the UK and EU regions. This is expected to boost FTNT’s top-line growth in the upcoming quarters.
The Zacks Consensus Estimate for this Zacks Rank #3 (Hold) company’s 2023 revenues is pegged at $5.3 billion, indicating year-over-year growth of 19.9%. The consensus estimate for earnings is pegged at $1.56 per share, implying a year-over-year rise of 31.09%.
Fortinet Faces Tough Competition in the Cybersecurity Market
According to a Statista report, the Cybersecurity market is poised for substantial revenue growth in the upcoming years. By the year 2023, it is estimated to achieve significant global revenues of US$166.20 billion. Within the market's diverse segments, Security Services is anticipated to take the lead, reaching a projected market volume of US$87.97 billion in 2023. Additionally, the market is forecasted to witness a consistent annual growth rate (CAGR) of 10.48% from 2023 to 2028 (CAGR 2023-2028).
Cybersecurity companies anticipate that generative AI tools will play a crucial role in decreasing the response time for identifying and addressing various types of computer hacking incidents. Additionally, it is envisioned that generative AI will take on more automated tasks within security operations centers, thus addressing the shortage of software engineers for companies.
Shares of Fortinet have gained 16.7% year to date compared with the Zacks Computer and Technology sector’s 49.1% rise due to tough competition from Microsoft (MSFT - Free Report) and Palo Alto Networks (PANW - Free Report) in the cybersecurity market.
Microsoft is identified as the primary threat to established players in the industry due to its practice of offering various products to companies through discounted deals. It is actively working on integrating artificial intelligence (AI) tools into its security platform, known as Microsoft Security Copilot, which utilizes a new AI assistant.
Palo Alto Networks offers security solutions specifically crafted to safeguard the majority of IT infrastructure elements. This encompasses network, endpoint, data center, private and public cloud, as well as Software-as-a-Service. At the heart of its offerings is a comprehensive platform featuring advanced firewalls, complemented by cloud-based services that broaden the coverage to include various aspects of security.
Fortinet is a major contender in the firewall security market, facing competition from Palo Alto Networks and other players. Firewalls act as a barrier between private networks and the Internet, preventing unauthorized traffic and scanning web applications for malware. Fortinet has redirected its focus toward software-defined wide area networks, an evolving technology in computer networking.
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Fortinet (FTNT) Arqit, BT Launch Quantum-Safe VPN Solution
Fortinet (FTNT - Free Report) announced that, along with Arqit Quantum Inc. (ARQQ - Free Report) and BT Group, it has introduced a commercially accessible, integrated product for quantum-safe virtual private network (VPN) communications. The launch comes after the effective trial of quantum-safe tunnels connecting three BT locations in London, Exeter and Adastral Park in Suffolk.
The strategy of "store-now, decrypt-later" utilized by nation-states and cyber adversaries, where encrypted data is accumulated for future decryption with quantum computing, poses a substantial threat to current data and communication systems. As cyber threats advance in complexity, global organizations must ensure their ability to defend against both existing and emerging risks.
Through the novel collaborative quantum-safe VPN solution, BT customers can leverage the integration of Fortinet FortiGate Next-Generation Firewalls empowered with Arqit's NetworkSecure Fortinet adapters and Arqit’s Symmetric Key Agreement Platform.
The solution facilitates the generation and on-demand rotation of quantum-safe symmetric keys for encrypting and securing sensitive data in point-to-point VPN connections. Initially, this joint solution has been made available for customers in the UK and EU regions. This is expected to boost FTNT’s top-line growth in the upcoming quarters.
The Zacks Consensus Estimate for this Zacks Rank #3 (Hold) company’s 2023 revenues is pegged at $5.3 billion, indicating year-over-year growth of 19.9%. The consensus estimate for earnings is pegged at $1.56 per share, implying a year-over-year rise of 31.09%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fortinet, Inc. Price and Consensus
Fortinet, Inc. price-consensus-chart | Fortinet, Inc. Quote
Fortinet Faces Tough Competition in the Cybersecurity Market
According to a Statista report, the Cybersecurity market is poised for substantial revenue growth in the upcoming years. By the year 2023, it is estimated to achieve significant global revenues of US$166.20 billion. Within the market's diverse segments, Security Services is anticipated to take the lead, reaching a projected market volume of US$87.97 billion in 2023. Additionally, the market is forecasted to witness a consistent annual growth rate (CAGR) of 10.48% from 2023 to 2028 (CAGR 2023-2028).
Cybersecurity companies anticipate that generative AI tools will play a crucial role in decreasing the response time for identifying and addressing various types of computer hacking incidents. Additionally, it is envisioned that generative AI will take on more automated tasks within security operations centers, thus addressing the shortage of software engineers for companies.
Shares of Fortinet have gained 16.7% year to date compared with the Zacks Computer and Technology sector’s 49.1% rise due to tough competition from Microsoft (MSFT - Free Report) and Palo Alto Networks (PANW - Free Report) in the cybersecurity market.
Microsoft is identified as the primary threat to established players in the industry due to its practice of offering various products to companies through discounted deals. It is actively working on integrating artificial intelligence (AI) tools into its security platform, known as Microsoft Security Copilot, which utilizes a new AI assistant.
Palo Alto Networks offers security solutions specifically crafted to safeguard the majority of IT infrastructure elements. This encompasses network, endpoint, data center, private and public cloud, as well as Software-as-a-Service. At the heart of its offerings is a comprehensive platform featuring advanced firewalls, complemented by cloud-based services that broaden the coverage to include various aspects of security.
Fortinet is a major contender in the firewall security market, facing competition from Palo Alto Networks and other players. Firewalls act as a barrier between private networks and the Internet, preventing unauthorized traffic and scanning web applications for malware. Fortinet has redirected its focus toward software-defined wide area networks, an evolving technology in computer networking.