“We anticipate that next year may mark the beginning of a refresh cycle, particularly for existing customers who have been using our products for an average of four to five years, signaling it's time for upgrades.”

In context

“Ken Xie (Founder, Chairman and CEO): We believe that next year will show a long-term convergence of networking and network security, and we are committed to this path. That's why we project a compound annual growth rate of about 15% in the secure networking sector. While specific slides in the investor presentation provide more details, we also see many new opportunities emerging, particularly in the operational technology area and Unified SASE, as well as through upselling and cross-selling. This strategy has driven approximately 90% of our customers to initially adopt FortiGate for firewall and network security, where we hold a significant advantage over our competitors. Following that, customers tend to expand their usage beyond network security into other areas, which is evident with Unified SASE for Secure Operations. Currently, we are observing a return to normal growth in our FortiGate firewall products, aligning more closely with market trends. We anticipate that next year may mark the beginning of a refresh cycle, particularly for existing customers who have been using our products for an average of four to five years, signaling it's time for upgrades.”