Fortinet (FTNT - Free Report) recently announced that Indian airline IndiGo has adopted the Fortinet Secure SD-WAN solution to secure its WAN edge across its branch offices in order to bolster security and connectivity across its branches.
Increasing number of passengers, poor MPLS (multi-protocol label switching) network and Internet quality delayed the process of tracking bookings, hampered customer service, etc, in turn, adversely impacting Indigo’s business.
The adoption of Fortinet’s hybrid WAN support integrated with security capabilities will help IndiGo improve link quality connecting 2000 users in 54 branches with the lowest latency. Moreover, by transitioning from MPLS to hybrid WAN, IndiGo is able to achieve higher bandwidth with lower WAN cost.
Further, as part of the Fortinet Security Fabric platform, FortiManager and FortiAnalyzer help IndiGo with SD-WAN management and orchestration with a single console for centralized management. The SD-WAN environment also features reporting and analytics.
Growing Efforts in India Market
This partnership is important for Fortinet to expand its reach in India’s aviation industry, which is currently dominated by Indigo. It is the largest passenger airline in the country with 46.9% market share (as of March 2019).
After analysis of growth trends, the International Air Transport Association suggested last year that passenger demand is expected to treble by 2037.
Fortinet has also been upping its efforts to expand reach into various other industries in India. Notably, in March this year, management said that budget for cybersecurity in India, which was 5-6% of total IT spending earlier, has increased to 10-12%. This is encouraging the company to scout for opportunities in the country’s government, banking and financial, healthcare, hospitality, retail and aviation sectors.
Importance of Cybersecurity in Aviation
Last year, the internal network of Cathay Pacific Airlines was hacked, putting personal information of 9.4 million customers at risk, making the incident the largest data breach in the history of the airline industry.
Recently, General Electric’s (GE - Free Report) aviation division GE Aviation’s cybersecurity team joined the FBI to prevent a foreign government from trying to steal the company’s trade secrets.
These instances highlight the importance of cybersecurity in aviation. Per ResearchAndMarkets, the aviation cyber security market is expected to witness a CAGR of 11% between 2019 and 2024.
Being the only vendor, which offers both security and SD-WAN solutions, the company is well positioned to capitalize on the increasing opportunities in the aviation security space.
Zacks Rank & Other Stocks to Consider
Fortinet currently carries a Zacks Rank of #2 (Buy).
A couple of other top-ranked stocks in the broader technology sector are Synopsys, Inc. (SNPS - Free Report) and Perficient (PRFT - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Synopsys and Perficient is currently pegged at 12% and 10.8%, respectively.
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