Business & Technology

Fortinet’s Ken Xie Talks about Business Momentum, Customer Trends, and Sustainability

By Fortinet | November 18, 2022

Fortinet is at the forefront of dynamic changes in cybersecurity and networking as an industry leader for over 20 years. Fortinet's founder, Chairman of the Board, and CEO, Ken Xie offers his perspective on important industry trends, business momentum, and how Fortinet is helping customers achieve their sustainability goals.

Can you provide a brief overview of Fortinet’s recent quarterly results for Q3 2022?

Ken: Revenue for the quarter grew 33%, significantly outpacing the industry growth rate. Product revenue growth was very strong at 39%, extending our position as a product revenue leader in the cybersecurity industry. Our product revenue performance reflects the strong demand we've built over the past 18 months across our security solutions along with the successful execution of our teams in managing the supply chain. In the quarter, SD-WAN and OT bookings grew over 45% and 75%, respectively, and together accounted for over 25% of total bookings. We believe we can achieve #1 market share in SD-WAN in the next couple of years.

What are the main growth drivers for Fortinet’s business?

Ken: Fortinet’s future growth will be driven by the convergence of networking and security, the industry trend of vendor and product consolidation, the elevated threat environment, and a greater focus on offering services for existing and new customers. In addition, customer recognition of the value provided by our high performance FortiASIC technology and integrated FortiOS operating system is driving our ability to take cybersecurity market share. For example, Fortinet continues to gain Secure SD-WAN market share as our Secure SD-WAN solution delivers better security, performance and efficiencies over more traditional offerings.

Can you talk about the opportunity you see with the convergence of networking and security?

Ken: We estimate the total addressable market for networking and security will increase from $54 billion today to $73 billion in 2026. Convergence accelerates digital transformation and substantially reduces operational costs by combining network modernization with dynamic security that spans every part of the network, especially now that many companies are merging SOC and NOC operations together. For years Fortinet has led strategies around the convergence of networking and security. In fact, we are leading the convergence trend with a wide range of technologies including Secure SD-WAN, SASE, ZTNA, and others in a single operating system which can be deployed as hardware, software, cloud, and as-a-Service.

What is one significant way Fortinet is different than other vendors today?

Ken: For over 20 years, Fortinet has been a driving force in the evolution of cybersecurity and the convergence of networking and security. Our security solutions are the most deployed, most patented, and among the most validated in the industry. Also, our proprietary ASIC technology and our integrated FortiOS, creates a unique advantage allowing us to converge networking functionality and security capabilities as well as consolidate vendors and product functionality across the entire infrastructure.

Can you elaborate on your recent product announcement and how it helps customers achieve sustainability?

Ken: Recently, we announced FortiGate 1000F, the latest series of next-generation firewalls to deliver higher performance (more than 7x faster firewall throughput) and lower power consumption (83% fewer watts per Gbps of firewall throughput) than competitive solutions.

Supported by over 20 years of developing purpose-built security processing units (SPUs), the FortiGate 1000F continues our legacy of delivering firewalls that provide the scale, performance, and power savings to meet the security requirements of enterprise data centers.

We continue to meet our own sustainability goals and help our customers do the same through our dedication to improving the performance and energy efficiency of our products. In fact, the lower power consumption was a contributing factor in our top 2% ranking in S&P Global’s Corporate Sustainability Assessment. We believe it is our duty to make the world a safer and more sustainable place.

Find out how the Fortinet Security Fabric platform delivers broad, integrated, and automated protection across an organization’s entire digital attack surface to deliver consistent security across all networks, endpoints, and clouds.