Fortinet NSE 7 - Enterprise Firewall 6.2 Exam Dumps

NSE7_EFW-6.2 Exam Format | Course Contents | Course Outline | Exam Syllabus | Exam Objectives

Fortinet NSE 7 - Enterprise Firewall 6.2
Exam series: NSE7_EFW-6.2
Number of questions: 30
Time allowed to complete: 60 minutes
Language: English and Japanese
Product version: FortiOS 6.2
Status: Available

1. Security Fabric
2. FortiOS Architecture
3. Traffic and Session Monitoring
4. Routing
5. FortiGuard
6. High Availability
7. Central Management
8. OSPF
9. Border Gateway Protocol (BGP)
10. Web Filtering
11. Intrusion Prevention System (IPS)

After completing this course, participants will be able to:
l Integrate FortiManager, FortiAnalyzer, and multiple FortiGate devices using the Fortinet Security Fabric
l Centralize the management and monitoring of network security events
l Optimize FortiGate resources
l Diagnose and monitor user traffic using FortiGate debug tools
l Troubleshoot issues with conserve mode, high CPU, firewall policies, session helpers, IPsec, FortiGuard, content inspection, routing, and HA
l Harden the enterprise services
l Simultaneously deploy IPsec tunnels to multiple sites using the FortiManager VPN console
l Configure ADVPN to enable on-demand VPN tunnels between sites
l Combine OSPF and BGP to route the enterprise traffic

100% Money Back Pass Guarantee

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Fortinet Inc (FTNT) Q1 2021 salary name Transcript

a close up of a logo: Fortinet Inc (FTNT) Q1 2021 Earnings Call Transcript © offered via The Motley fool Fortinet Inc (FTNT) Q1 2021 income name Transcript

Fortinet Inc (NASDAQ: FTNT)

CONSTELLATION manufacturers, INC.

Q1 2021 revenue name

Apr 29, 2021, four:30 p.m. ET

Contents:
  • organized Remarks
  • Questions and answers
  • call individuals
  • organized Remarks:

    Operator

    ladies and gentlemen thank you for standing with the aid of. And welcome to the Fortinet's Q1 2021 earnings Announcement name. at the moment all individuals are in a listen-only mode. After the speakers' presentation there will be a question-and-reply session. [Operator Instructions]

    i might now want to hand the convention over to your speaker for these days, Peter Salkowski, vice president, Investor relations. You can also start sir.

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    this text is a transcript of this convention name produced for The Motley fool. while we attempt for our silly surest, there may well be blunders, omissions, or inaccuracies during this transcript. as with all our articles, The Motley fool doesn't assume any responsibility for your use of this content, and we strongly motivate you to do your personal analysis, including paying attention to the call your self and studying the company's SEC filings. Please see our terms and stipulations for extra details, including our mandatory Capitalized Disclaimers of liability.

    The Motley fool recommends Fortinet. The Motley idiot has a disclosure policy.

    Peter Salkowski -- vice chairman of Investor family members

    thank you, Rowanda. decent afternoon, each person. here is Peter Salkowski, vice president of Investor members of the family at Fortinet. i'm comfortable to welcome each person to our call to discuss Fortinet's economic outcomes for the primary quarter of 2021. speakers on state-of-the-art name are Ken Xie, Fortinet's Founder, Chairman and CEO; and Keith Jensen, our Chief economic Officer. here's a are living call that may be available for replay by means of webcast on our Investor relations web site. Ken will start our name today by presenting a excessive-level point of view on our company. Keith will then assessment our economic and operating results for the first quarter, before offering information for the 2nd quarter and updating the entire 12 months. we will then open the call for questions. [Operator Instructions]

    before we start, i'd want to remind everybody that on brand new name we should be making ahead-searching statements and these ahead-looking statements are discipline to risks and uncertainties which may cause genuine effects to differ materially from those projected. Please discuss with our SEC filings, in certain the possibility elements in our most fresh kind 10-k and kind 10-Q for greater counsel. All ahead-looking statements reflect our opinions only as of the date of this presentation, and we undertake no responsibility and peculiarly disclaim any obligation to update forward-looking statements. additionally, all references to financial metrics that we make on brand new name are non-GAAP, unless pointed out in any other case. Our GAAP consequences and GAAP to non-GAAP reconciliations are located in our income press free up and in the presentation that accompanies present day remarks, both of which might be posted on the Investor family members web site. finally, all references to boom are on a year-over-yr basis, unless stated otherwise.

    i could now flip the call over to Ken.

    Ken Xie -- Founder, Chairman & Chief govt Officer

    thank you, Peter. And thank you to every person for becoming a member of modern name to review our first quarter 2021 effect.

    we are very completely happy with our strong first quarter efficiency. Billings extended 27% to $851 million, pushed via solid execution across a vast and integrated product and services. secure SD-WAN contributed 14% to first quarter billing. complete earnings grew 23% to $710 million with product income boom of 25%, the highest quarterly product revenue growth in the remaining 5 years. With mighty business momentum and first-rate visibility, we have now remained concentrated on growth.

    in the first quarter, we released FortiOS7.0, which provided the trade first OS label with tight integration of a wide security and community functions, together with SASE, SD-WAN, Zero-have confidence network entry, CASB and 5G skill. today we introduced the forty GIG seventy one.01 AF, the world's quickest next-era firewall, and the handiest firewall with hyperscale four hundred gig interface. The 71.01 AF will support 5G cellular network operators to relaxed distinct edges inside their infrastructure and are enabled by using MSPs to be with scalable protection offerings. Powered through our new MP7 security system unit, the 71.01 AF can provide safety contributing of 2x to 19x superior than comparative solutions.

    We proceed to see momentum and adoption of our SD-WAN, SASE and 0 have confidence network access solution among the world's greatest service providers. nowadays, we announced Bridges Telecom, a brand new foremost comfortable SD-WAN service powered through Fortinet. In March Fortinet and AT&T announced the potential of a new managed SASE answer for enterprise shoppers.

    increasingly, companies are consolidating towards a holistic platform strategy, supplying integrated and automate protection cowl on-premise network, endpoint and cloud at ease side. The Fortinet safety cloth is a cyber-protection platform, organically built on a huge and a big set of networking and safety expertise designed to seamlessly operate together. The excessive-profile of safety incidence that occurred during the last few months, along with the pandemic, has improved the need for a large platform that may secure an enterprise on track infrastructure across distinctive area in a 0-trust ambiance. We expect corporations to raise the percentage of IT spending used for protection with a view to handle their cyber-security needs.

    Our protection-pushed networking approach, is a key growth driver. moreover, we predict that our significant organic product boom will cause boost the service earnings.

    earlier than turning the call over to Keith, i would like to thank our employees, valued clientele, partners, worldwide for their endured help and difficult work. Keith?

    Keith Jensen -- Chief financial Officer

    thank you, Ken. And to add to your comment, we should be aware that billings increase, product salary growth and complete earnings boom had been each at five-yr highs.

    k, let's beginning the more specific Q1 discussion with revenue. complete revenue of $710 million changed into up 23% driven by trade-main product salary growth of 25%. Auto-pushed boom was large-primarily based across geographies, protection fabric items and use circumstances illustrating the market acceptance of our built-in, single platform, security strategy. customer demand for safety across their total infrastructure and the range of our customer base. Product salary boom become over 30% for both infrastructure and cloud cloth items. And all three geographic areas expanded 20% or greater. Demand for security material items became strong across all form components, hardware, application, and virtual machines. The boom we experienced for product profits was not the influence of a couple of large offers, lessen backlog or bigger channel companion inventory ranges.

    The product income increase additionally enables raises in capabilities billings and future features profits. within the first quarter carrier profits of $470 million became up 22%. guide and related functions salary extended 23%, to $214 million. security subscription functions earnings accelerated 21% to $255 million taking advantage of outsized growth from our cloud issuer and SaaS security offerings.

    relocating to the mixture of FortiGate and Non-FortiGate platform profits, the FortiGate section of the textile platform noticed income boost 17% driven by demand for entry-level and high-conclusion FortiGate items. excessive-conclusion comprises 10 new NP7 powered FortiGates that have been delivered during the past week, which contains present day announcement of the seventy one.21F. These new items now symbolize about 20% of excessive-end FortiGate shipments. Our AC pushed FortiGates supply consumers five to ten instances extra computing vigour than firewalls that run on ordinary CPUs. The superior computing vigor creates now not handiest velocity, however also the skill to continue so as to add performance to our operating device, driving our expense for performance talents.

    The Non-FortiGate section noticed profits grow over forty% and now accounts for 31% of complete salary up four percentage aspects.

    The built-in security textile options, carries a complete range of kind components and birth strategies, including actual and digital home equipment, cloud, SaaS and knowledgeable application, in addition to hosted and non-hosted solutions. collectively, they provide more than a few safety options and kind components enabling built-in insurance plan for hybrid environments and the increasing digital assault surface from the statistics core, to the endpoint, to the cloud. Given the potent first quarter performance-earnings efficiency, we believe our Non-FortiGate platform is now on a pace to be a $1 billion enterprise this year, representing an acceleration of this milestone.

    Let's flip to profits by means of geographies. As summarized on Slide 5, earnings in the Asia Pacific area multiplied 26%; EMEA earnings increased 25%; and Americas posted earnings growth of 20%. As i discussed previous, all three regions skilled product revenue growth of 20% or extra.

    moving to billings. the first quarter billings had been $851 million, up 27%. We saw amazing growth in both the FortiGate and non-FortiGate segments at a safety cloth platform. The FortiGate section delivered billings boom of 20%, accounting for 70% of total billings.

    As proven on Slide 6, entry-stage FortiGate posted very robust billings boom in the quarter. The non-FortiGate segment accounted for 30% of total billings and delivered billings growth of fifty%, using a 4-element year-over-yr mix shift to non-FortiGate. Taking together, these facts aspects highlight the market acceptance of our single integrated security platform strategy. in terms of billing boom by means of geos, APAC outperformed all geos adopted by Europe, and the Americas. in the Americas, Canada had a very mighty quarter and Latin the us rebounded from the pandemic brought on slowdown posted billings growth in the mid-20% latitude.

    relocating to billings with the aid of client segments, the small business segment posted strong increase across all geos. This phase is driven through new client acquisitions, client safety material expansions, strong execution by using our channel partners and the massive distinctive makeup of this foreign consumer section. on the equal time, we noticed potent increase in our bigger deals. The variety of offers of $1 million, extended 74% to sixty six deals in the first quarter. The pipeline for offers of a $1 million appears first rate for the remainder of the yr.

    As Ken referred to, comfortable SD-WAN billings had been 14% of total billings. SD-WAN as a key performance and an integrated staffing solution. relocating to global billings by industry verticals become yet another strong international performance. The worldwide govt sector topped all verticals at 19% of total billings and turned into up 60%. provider suppliers and MSSPs accounted for sixteen% of complete billings. The rebound for education accelerated. we've accomplished this increase of 50%.

    Retail turned into an excellent quarter with billing increase of 21%. Our amazing and consistent billings and income efficiency over the last a few years is testament to our geographic and client variety. The starting to be success with a single integrated safety platform strategy and our ASIC knowledge, which enables a shared working system throughout the safety fabric platform drives our price or efficiency competencies, increase the potential so as to add facets and capabilities whereas preserving cost facets.

    moving returned to the profits observation. As proven on Slide four, complete gross margin superior 10 groundwork points to 78.9%. Product gross margin enhanced a hundred and twenty foundation elements to sixty two.6% benefiting from reduce direct product charge. The enhance in product gross margin offsets the drag on complete gross margins from the profits mix shift driven by means of the amazing product profits increase and a gross margin-and the gross margin FX headwind [Phonetic] about 25 foundation features. operating margin for the first quarter improved 210 foundation features to 24.5%, benefiting from the strong salary performance in the quarter.

    The benefit from lower go back and forth and marketing program costs are about one hundred basis aspects. It changed into greater than offset by means of an working margin headwind from foreign trade of about a hundred and fifty groundwork aspects. To end the quarter-we end the quarter with complete head count number of 8,615, a rise of 16%.

    moving to the statement of money circulate summarized on Slide 7 and 8. Free cash flow for the first quarter came in at $264 million, up $22 million from the first quarter of 2020, regardless of a $24.5 million 12 months-over-12 months boost in capex spending. We ended the 12 months with total cash and investments of $three.1 billion, an increase of $1.5 billion. The boost contains the proceeds from our $1 billion investment grade debt issuance all over the primary quarter. The issuance adopted our inaugural powerful triple B credit scores. all over the pandemic, we now have leveraged the energy of our steadiness sheet as a aggressive knowledge to assist our companions and clients as they skilled geo-selected economic challenges.

    as a result each day income surprising improved seven days to 81 days and in accordance with our expectations and reflecting our earlier decisions to supply geographically targeted prolonged payment phrases. in comparison to the fourth quarter of 2020, DSI changed into on the first quarter of 2021 decreased six days, as we noticed early growth towards returning to pre-pandemic price phrases. inventory turns declined to 2.1 times from 2.5 instances, reflecting the efforts we took to mitigate deliver chain risk, together with expanding our stock tiers, starting previous in 2020. We expect extended price terms and better stock balances to be in impact as we circulate via 2021. Capital expenses for the first quarter have been $52 million, together with $38 million related to construction and different precise estate endeavor.

    We are expecting to begin moving employees and the brand new Sunnyvale campus building within the center of the 12 months. however the timing will depend on local pandemic protocols and employee safeguard considerations. We estimate capital expenses for second quarter between $30 million and $40 million for all of 2021 to between 150 and 179.

    The general contract term within the first quarter was about 27 months, up below two months from the primary quarter of 2020, and down about one month from the fourth quarter of 2020. comfortable SD-WAN accounted for 15 offers of $1 million versus 4 in the first quarter of 2020, and contributed to the boost in standard contract time period.

    As we seem ahead, our intention is still to balance boom and profitability. And given the growth opportunities we highlighted throughout the March Analyst Day and as confirmed in our first quarter effects, we now have tilted our bias toward growth for at least the subsequent several quarters. The alternatives we see are supported through a robust pipeline, accelerated income ability and our building efforts, which include the NP7 chip and our new FortiOS7.0 working device that become currently launched.

    Now i might want to evaluation our outlook for the 2nd quarter suggestions summarized on Slide 9, which is discipline to disclaimers regarding forward-searching suggestions that Peter provided in the beginning of the call.

    For the second quarter, we expect billings in the latitude of $860 to $880 million. revenue within the range of $733 million to $747 million. Non-GAAP gross margins of 78.5% to 79.5%. Non-GAAP operating margin of 24.5% to 25.5%, which includes an anticipated 100 basis points to one hundred fifty foundation features headwind in overseas alternate.

    Non-GAAP revenue per share of $0.83 to $0.88, which assumes a share count number of between $168 million and $170 million. We predict a non-GAAP tax expense of 21%. earlier than elevating our 2021 guidance, i'd want to congratulate every member of the Fortinet crew for the definitely brilliant beginning to 2021.

    For the 2021 we are expecting billings in the latitude of $3.685 billion to $3.745 billion, which on the mid-element represents boom of about 20%. earnings within the range of $3.080 billion to $3.a hundred thirty billion, which at the mid-aspect represents boom of approximately 20%. total carrier revenue within the range of $2.020 billion to $2.050 billion, which represents boom of about 21% and implies product profits growth of approximately 17%.

    Non-GAAP gross margin of 78% to 80%. Non-GAAP working margin of 25% to 27%. When retreating the 2020 T&E improvement, the midpoint of the counsel represents a 50 to 100 basis aspect increase in 2021 operating margin, despite an anticipated headwind from foreign change. Non-GAAP profits per share of $three.sixty five or $three.80, which assumes a share count of between $one hundred seventy million and $172 million and about $0.07 per share have an impact on in debt issuance. We predict our non-GAAP tax price to be 21% [Phonetic]. We predict money taxes to be about $eighty million.

    And together with Ken, i would like to thank our partners, our clients, and the Fortinet crew for all their aid and difficult work in these elaborate and interesting instances.

    Now i may hand the name again over to Peter to begin the Q&A.

    Peter Salkowski -- vice chairman of Investor members of the family

    thank you, Keith. As a reminder, during the Q&A session, we ask that you simply please limit your self to at least one query and others to participate, we have obtained a pretty big queue these days. So i'd like to get through each person at the least once.

    Towanda, please open the call for questions.

    Questions and answers:

    Operator

    thanks. [Operator Instructions] Our first question comes from the road of Rob Owens with Piper Sandler. Your line is open.

    Rob Owens -- Piper Sandler -- Analyst

    top notch. And thanks for taking my query. With one of other verticals in the media, seeing concerns with chip shortages and a few provide chain considerations, is that kind of sneak into the safety market relative to firewall aspect shipments. and might you speak a little bit about your expertise exposure? Thanks.

    Keith Jensen -- Chief economic Officer

    neatly, I feel the chip shortages-this is Keith, Rob. I suppose the chip shortages that you point out is can contact loads of diverse industries. I believe one aspect about Fortinet apart from having different form components is the inventory balances that we elevate, a two instances stock turns, you're in fact six months of inventory that we're carrying on our stability sheet. I do are expecting that the provide chain considerations could be something mainly involving chips that might be a continuing conversation facets all over 2021 and into 2022. however I feel when it comes to after we sit down down and discuss our expectations for the year, I consider we've a reasonably good understanding of how to work that in.

    Rob Owens -- Piper Sandler -- Analyst

    Thanks, Keith.

    Operator

    thank you. Our next question comes from the road of Brian Essex with Goldman Sachs. Your line is open.

    Brian Essex -- Goldman Sachs -- Analyst

    remarkable. thanks. And thanks very an awful lot for taking the query. Ken, i was simply wondering, billings commentary worldwide govt up 60%, some truly fine acceleration there after which MSSP and service suppliers still 16% of complete. may in case you can focus on obviously we be aware of what the secular drivers in MSSP are. How long lasting is that, perhaps the factors that are riding that acceleration in executive spend, and then perhaps speak a little bit about specifically on the service provider side, it does not seem as though we're seeing an acceleration from 5G and IoT yet. who are the patrons there? How do you count on that section will play out in the course of the leisure of the year as you look your way through the the rest of the yr?

    Ken Xie -- Founder, Chairman & Chief executive Officer

    yes. service on this loads of service provider beginning to now reshaping their-security network present whether it's 5G, SD-WAN, all of the SASE and additionally supporting make money working from home kind of still in the early stage, I put during this manner. So this is the place we working very carefully with all of the carrier company just like the VG [Phonetic] we announced these days, the AT&T we introduced last month and relatively a good deal all the provider company to support after which all these transferring of the company mannequin. and that i say it's still early stage. We do contain a lot of trying out trial. And on the equal time, I do agree with eventually the service provider enterprise will go lower back as much as the number one is are typically like a excessive 20, like in case you go lower back four, six years ago, but it surely's a-because it's a brand new variety of shifting, so they are-they do have some work to do and additionally some huge funding we see going forward. So we're working together with them to keep transforming into this business presently.

    Brian Essex -- Goldman Sachs -- Analyst

    acquired it. Very positive. thank you.

    Ken Xie -- Founder, Chairman & Chief government Officer

    thanks.

    Operator

    thanks. Our next question comes from the line of Jonathan Ho with William Blair. Your line is open.

    Jonathan Ho -- William Blair -- Analyst

    good afternoon. Congratulations on the robust quarter. I just desired to get an improved sense of what you might be seeing when it comes to demand for the SASE and ZTNA oriented items. And are you on the grounds that pipeline type of persisted to upward thrust specifically as we analyze variety of replacements for the traditional VPN connections and different kind of extra legacy applied sciences? thank you.

    Ken Xie -- Founder, Chairman & Chief executive Officer

    sure, that is the brand new speedy growing to be market, however additionally they probably substitute one of the most ordinary approach, however some other usual strategy additionally extend inner campus, interior-and possibly internal the information core, in order that go through the inside segmentation. On other side, we do accept as true with we entered the SASE zero have confidence network like we pointed out few years in the past or not it's the foremost position likely noticed the service company carrier. So we are typically extra working with them, accomplice with them and additionally present kind of greater tighter integrated answer like we stated in the FortiOS7.0 is awfully combine OS community inside of some different supplier the use of distinct field, so that you can form of analyze distinct inputs elements to that.

    So that's basically working tons superior with a wider provider company with client at once. So this is where we do see there are some quick growing going forward, nonetheless it's just part of the complete infrastructure solution will now substitute the normal method, however also the whole thing's protection is smarter than that dynamic house, there's a new team come up and also the-that alternate options also now not goes away. So it truly is the place we are trying to handle is a brand new chain and equal time protecting at fingers the normal answer and to assisting the client in all different vertical distinctive region.

    Jonathan Ho -- William Blair -- Analyst

    thank you.

    Operator

    thanks. Our next query comes from the line of Ben Bollin with Cleveland analysis. Your line is open.

    Ben Bollin -- Cleveland research -- Analyst

    good evening, Ken, Peter-Keith, Peter. Thanks for taking the question. i was hoping you could talk a little bit about the way you see client discussions altering or evolving as they contemplate and begin to return to their workplaces and to work. and then additionally hoping you could touch on the way you view the boom possibility over time from fully new valued clientele versus pockets share growth with your latest shoppers? Thanks.

    Ken Xie -- Founder, Chairman & Chief government Officer

    The consumer would not view safety, become further and further vital, but also they should cowl a good deal extensive infrastructure and all edges in its place of as a traditional comfortable whatever thing the border or the facts in different company. So it's greater machine, greater user, extra infrastructure need to be covered. So it truly is-it be no longer an easy refresh. it be actually a transformation into the total infrastructure method and also working in conjunction with traditionally negative from vendor cowl, whether now working on conclusion point as a mother a part of a security. Now they're trying to find some consolidation and that they prefer, when they have distinct cowl of a different a part of infrastructure working collectively. So that you should see that the cloth strategy we did a number of years in the past starting doing rather neatly and pretty much pretty a whole lot every quarter double the boom compared to the average community security. however now what they created, we also see extra suit increase and it be in reality not as increasing beyond the common border security approach, however also because the ASIC expertise, which elevated the relaxed computing power 5 to 10 times in comparison to that the different companies application loaded on the natural CPU.

    So it truly is capable of add a more feature and additionally variety of boost performance, reduce the cost, and also a low car park assumption, more eco-friendly. so that it's in reality making that this like the product worlds like we say that retaining us, holding to greater and more desirable. And that we do see this entire infrastructure strategy will keeping going for the next, likely a couple of quarters even to a few years. And the consolidation will protecting going in the business.

    Keith Jensen -- Chief fiscal Officer

    sure, then i'd simply proceed on with Ken's comments. I believe the headline that he is said up to now is that the returned to work really the mixture of lower back to work and many groups being in a hybrid mannequin that the attack floor now looks to be permanently elevated for a lot of, many businesses. when it comes to increase in how we see it with new trademarks and enlargement alternatives, we with no trouble add several thousand new consumers each quarter.

    but if you look on the mix of billings, the mix of billings is going to come back from our put in base of customers, if you will. and that i consider the primary model we'll look at is, from that initial sale of perhaps a firewall or anything else. there may be two alternative ways to extend. One is discovering more and more use circumstances internal businesses for firewalls and more and more displacement alternatives.

    after which the 2d is, and here is where Ken was going is the growth possibility where these non-FortiGate cloth companion products. And we're seeing there with that that combine shift from FortiGate to non-FortiGate, and now being 30% of our company, 31% of our business. I consider it be taking as one affirmation of the approach and two, you are seeing it in the numbers.

    Ben Bollin -- Cleveland research -- Analyst

    thank you.

    Operator

    thank you. Our subsequent query comes from the line of Tal Liani with financial institution of the united states. Your line is open.

    Tal Liani -- bank of the united states -- Analyst

    hi guys, i am going to take you to the basics with my query. last yr changed into strong and there changed into some subject that the firewall market is being driven by using a COVID-related demand, simply on account of work-from-home. And the query is whether or not you are expecting any slowdown of demand regarding the anniversary of the traits last year. And the second query is your non-FortiGate grew extraordinarily amazing again. in case you can take us during the fundamentals, what are the items that are transforming into there? just what are the trends and what do you convey to the market? Thanks.

    Ken Xie -- Founder, Chairman & Chief executive Officer

    i will take the primary half, possibly Keith bought second half. I do not see any slowdown even for the FortiGate aspect. it is-we're protecting profit in market share, like I talked about as a result of there's a basic like a know-how structure difference with 5 to 10 instances the computing vigor compared to our competitor we will with ease add a feature efficiency and even for work-from-home is greater like a one single with the field and replace like a three, 4 distinctive box on an helping that safety aspect, like of these aside, and additionally like control domestic Wi-Fi and the site visitors there.

    So it really is also lot of enterprise also beginning to this form of expand the department to the domestic called domestic department or some thing to meet working regular like an improved networking, reliability, security to the total ambiance. So it really is also need to be the answer. that is additionally lot of the intent we see one of the vital low asset and retaining develop relatively fast. it be a look for a house in reality helping riding some of this factor of your revenue. however also going ahead no matter if the provider company every other after say most commercial enterprise, no longer even kind of a metamorphosis may after infrastructure to adapt is extra work-from-home yet. they are nonetheless within the early stage. So we do see there's a large knowledge going forward. yes, it truly is all, Keith.

    Keith Jensen -- Chief economic Officer

    yes. smartly, it's a little challenging for me to appear lower back on the 2nd quarter of remaining yr and where their billings growth became and the product profits grew up and things that i was getting. I did not feel like i used to be getting a tailwind from VPN or whatever like that in the 2d quarter of last 12 months. That talked about I suppose we're very completely happy with how the 12 months persevered to play out and in the growth numbers that we now have provided.

    I do not know that, early on in the tiers of make money working from home, but that become whatever thing that always Fortinet participated in to the identical stage of perhaps some of the different firewall carriers did.

    after which the second a part of your query you're going to be joyful to understand that Ken and Peter and that i sit down every quarter and consider the fab and the non-FortiGate products and try and find the one it's really distinguishing itself. And we preserve coming to the same conclusion each and every quarter. or not it's a rising tide lifting all boats. If no longer that anyone product is definitely standing out extra so than the different over an extended length of time.

    Ken Xie -- Founder, Chairman & Chief government Officer

    Yeah, or not it's basically as a result of lots of the half that we boost internally from day one, or not it's making integrate function collectively. So it really is likely the important thing number one intent, consumer want to purchase is-we tried to consolidate, make it more straightforward to manage. or not it's distinctive than another company after they acquire some a part of our business from outside is that take a very long time and more elaborate to combine. So we now have internally developed from day one. now we have been making working together.

    Tal Liani -- bank of the usa -- Analyst

    appropriate. So, my query became much extra primary, what are the key items which are using up the boom of non-FortiGate? So we comprehend it's SD-WAN, what else?

    Ken Xie -- Founder, Chairman & Chief executive Officer

    I see what I believe the part of FortiGate.

    Tal Liani -- financial institution of america -- Analyst

    acquired it. sure.

    Ken Xie -- Founder, Chairman & Chief government Officer

    So we don't comment on non-FortiGate, however is we've like 20, 30 given product, contact all part of the infrastructure and the important thing spoke of is problematic to factor out which one is capable. sure, it's [indecipherable]. I examine the total element.

    Tal Liani -- financial institution of the us -- Analyst

    bought it. thanks.

    Operator

    thanks. Our next query comes from the line of Sterling Auty with JPMorgan. Your line is open.

    Sterling Auty -- JPMorgan -- Analyst

    Thanks. hello, guys. questioning if you may help me more suitable remember the disproportionate growth that you simply saw internationally, notably in EMEA relative to the development you saw within the U.S.?

    Ken Xie -- Founder, Chairman & Chief govt Officer

    I think identical like we remark within the remaining couple of quarters, or not it's a photograph there like pandemic, once is starting get enhancing, additionally are attempting to believe about a way to go lower back [indecipherable]. You outlined infrastructure considering the fact that we will be learning across. So that is the place like APAC [Phonetic], it would be quicker by means of U.S. trap up however right away.

    Keith Jensen -- Chief economic Officer

    i could simply add on to that. Sterling, I feel the-actually for us that the markets are just a little different. and maybe that comes into play a little bit, the eu, the international a part of the market. we are repeatedly you're going to have the no 1 market share when the incumbent and specially all the way through the pandemic, I suppose incumbents have an expertise. I think within the U.S. possibly we're a bit more of a challenger if you will.

    and that i don't know that, lots of CIOs and CTOs had been concentrated on firewall refreshes in the 2d quarter and third quarter of closing yr and going through a competitive dynamics. and that i suppose there's additionally just a little of the companion ecosystem. in the event you're the incumbent, you likely have more intellect share with the partners. Then if you happen to do with the challengers. Now, having said all that as we appear ahead, and we examine our pipeline, primarily in terms of the USA, as we go to the conclusion of the 2d quarter right here throughout the rest of the 12 months. I believe we're feeling very decent in regards to the path of that organization is headed.

    Ken Xie -- Founder, Chairman & Chief government Officer

    yes, we additionally will conserving your mass more into the U.S. for helping extra boom like we did for the PGA sponsorship and a few things I suppose could be assisting force the growth in the U.S.

    Sterling Auty -- JPMorgan -- Analyst

    received it. thank you.

    Operator

    thank you. Our subsequent query comes from the line of grey Powell with BTIG. Your line is open.

    gray Powell -- BTIG -- Analyst

    k, excellent. Thanks for taking my query and congratulations on the respectable numbers. So, yeah, possibly to follow up on the SASE facet of the business. How immediately should we feel of billings boom ramping below 40 SASE product, and then I do not need to get too aggressive, however may it doubtlessly have an identical ramp to what you noticed in 2018 and 2019 with SD-WAN back when that product became just getting begun? simply how should still we believe about-simply the basic upsell there. Thanks.

    Ken Xie -- Founder, Chairman & Chief govt Officer

    I also, i can say a bit bit identical query. We also sort of examine different market analyze and also what's the most advantageous model to do that with a associate collectively. I suppose possibly an identical like SD-WAN, however it's-however also SD-WAN is a part of the-a part of a SASE solution and additionally SASE including some other characteristic there, which we also wish to have a like a much better integration and more suitable performance and that you just need to manage. So it is the place we take some time to launch our SASE and also greater carefully working with accomplice to do this. but it's a-the market really transforming into, however we also closely watching and what is the highest quality solution to place ourselves to seize the fashion.

    gray Powell -- BTIG -- Analyst

    ok. thanks very a good deal.

    Ken Xie -- Founder, Chairman & Chief government Officer

    thank you.

    Operator

    thank you. Our next query comes from the road of Shaul Eyal with Cowen. Your line is open.

    Shaul Eyal -- Cowen -- Analyst

    thanks. respectable afternoon, gentlemen, congrats on a powerful efficiency. Keith or Ken traditionally the refresh cycle live performance used to give some disruption at times. i'd even say some noise round mainly for in its enterprise. it would appear that over the past, doubtless 18 months or so. there's less dialogue and focus around it. Do you think that Fortinet is progressively shifting faraway from it or is that there is so many concurrent inner refresh cycle given the broadening of your platform, that it's fitting much less of a relevant concern? what is the pondering it?

    Ken Xie -- Founder, Chairman & Chief govt Officer

    I doubtless hesitate to use some upper refresh compared to remaining time, that you would be able to see that 2012, 2013. and that's where or not it's the predominant firewall changing the ordinary firewall VPN, which [indecipherable] firewall has them intrusion prevention, and anti-virus all the other features. they may be a proxy. but this time it be expanding right into a tons broader, greater infrastructure both internal internal the business, and also go to the backyard enterprise that one aspect even extend work from home.

    So or not it's greater form of increasing and identical type of distinctive part of security additionally should be more working together. So this is from company IT side, they look-if they can consolidate and aid them to manipulate and combine, automate should be greater crucial. So this is the place like I mentioned, there's a multi-shrewd, extra people linked and like a -- or not it's a bit bit distinct and that's the reason the place making-make a large, large integrated approach, I consider is more important and equal type of aiding that than you technology that what are 5 GSP when, and additionally variety of, they be carrier model additionally would be, could be vital, however we also feel as soon as the product at, in the customer hand because the large computing vigor to liquidity, we can even be add additional servers and holding assisting valued clientele undertake the nuisance they want, and also be a carrier provider. so that it is additionally variety of conserving that the greatest-conserving growing to be in widespread.

    Keith Jensen -- Chief financial Officer

    I suppose you and Ken are variety of concerning same factor with, even in reference to, i might say it this way, or not it's going to get harder and tougher. I feel to discern business refresh cycles, it in comparison to where it turned into probably 5 or 6, seven years ago for a number of explanations. One, the firewall companies are conveniently higher. Their footprint is lots, a lot larger than it was earlier than. Secondly, you've got some of us sort of showing success on the platform approach, when 30% of your billings are coming from the platform, once again, to your aspect, it be going to get a bit more durable to determine it and the sheer measurement, in case you will because the footprint when it comes to customers, however also the variety of diverse used cases which are starting to evolve and continue to conform inside those agencies. I consider all that comes collectively, it's going to get murkier and murkier able to go ahead, to discover a refresh cycle.

    You might also have some particular person competitors that might be have very, very colossal price elements or machines or whatever thing like that, the place they've their own inside refresh cycle that you simply may additionally see some noise round, but that's basically no longer the Florida strategy for firewall refreshes.

    Ken Xie -- Founder, Chairman & Chief executive Officer

    The traditional firewall all of the manner they're hardly being deployed. it be no longer going away. They also variety of, each 5 years doubtless should be updated to the brand new motto to match and that working speed as a modern one, however they additionally increasing past that one and additionally need to be going for walks, not out of a safety infrastructure, inserting this way.

    Shaul Eyal -- Cowen -- Analyst

    Understood. thank you so lots. neatly accomplished.

    Ken Xie -- Founder, Chairman & Chief executive Officer

    Yeah. thank you.

    Operator

    thanks. Our next question comes from Adam Tindle with Raymond. James. Your line is open.

    Adam Tindle -- Raymond James -- Analyst

    k thanks. first rate afternoon. perhaps one for Keith, you could have referred to this being a 12 months to invest for growth. Your Q1 consequences clearly say that's working billings increase in high 20s at a scale coming near $1 billion and doing that with in shape income is pretty pleasing. So, for my query, i used to be just wondering at this factor, if you evaluated no matter if to lean much more on increase, given the early outcomes that you're seeing?

    And if you may maybe touch on the common sense of why now not are there diminishing returns above this stage, is that this some thing you possibly can accept as true with reevaluating because the year progresses? thanks.

    Keith Jensen -- Chief financial Officer

    sure, Adam, it sounds such as you are listening in to one of the conversations that Ken and that i have with our respective factor of view, I feel. I believe we're definitely comfortable with how the business executed in the first quarter, putting up 27% billings growth and being eleven to 12 aspects above, and then raising the 22%, 3.5 features on the billings line for the yr, probably for the quarter and then taking the yr up on the equal time via about 4 aspects, I think, the stage of execution is shown to be very, very excessive. And the level of success with the firewalls and the Non-FortiGate items have been-we're very, very completely happy with what's happening there.

    I suppose we will see how this year plays out. We felt that there were tailwinds coming into the year for us at a number of alternative ways, even if it became GDP, no matter if it turned into stimulus, no matter if it become the product suite that we had, or our income group's skill to execute. And let's see how we do as we proceed on this trajectory, optimistically in the course of the relaxation of the year.

    Adam Tindle -- Raymond James -- Analyst

    thank you. it is fair satisfactory. i'd love to be a fly on the wall for those conversations.

    Operator

    thank you. Our next query comes from the line of Andrew Nowinski with D.A. Davidson. Your line is open.

    Andrew Nowinski -- D.A. Davidson -- Analyst

    first-rate. thank you. And congrats on yet another notable quarter. I need to ask about the partnerships with one of the MSPs that you outlined AT&T and BT. those have been historically potent partnerships for Zscaler. So, i wonder do you think you're eating into these Zscaler's mind share at those companions or are they simply attempting to present their consumers possibly an additional SASE providing?

    Ken Xie -- Founder, Chairman & Chief government Officer

    let us say, within the last few years for some point we used Zscaler as probably the most carrier suppliers could be partnered. however additionally, one of the crucial telecom groups, they do have their infrastructure and additionally some of their consumer base, which we have been working with them for a long, long term. So, as soon as, exceptionally all through the pandemic, IT has been in a high power to helping even if interior or every other want being wonderful. that is where SASE presents kind of more service-based strategy which also form of undertake in line with [indecipherable] service company instantly. So it is where we also leverage every kind of relation with the partner and additionally our product expertise, and carriers and present plenty tighter, integrated SASE across community solution. Some greater telecom accomplice they love it plenty, I put in this manner.

    So it really is why we're continuing to work with them. So I do trust the enterprise within the service carrier company, once we go returned to the number one like just a few years in the past, the excessive 20 that even have to work in carefully with a companion and additionally another infrastructure, a new infrastructure, i can mention even if the SD-WAN and the 5G or another mode of IoT OT and even may be SIPG, or every other issue. I consider there may be lots of potential so that it will effect, how can a carrier issuer do preserve increasing the security enterprise together.

    Andrew Nowinski -- D.A. Davidson -- Analyst

    yes, it sounds first rate. Thanks a lot, Ken.

    Operator

    thanks. Our next question comes from the line of Irvin Liu with Evercore. Your line is open.

    Irvin Liu -- Evercore -- Analyst

    Ken congrats on the splendid quarter. You in the past identified, persisted enlargement into tremendous commercial enterprise as a key contributor to boom in share positive factors. are you able to talk about even if this became an element for your Q1 outperformance?

    And also, are you able to additionally focus on any key differences when promoting to huge enterprises versus SME, S&D purchasers, for example, the go-to-market movement and/or timetable required to close a deal? So, any color right here, can be constructive. Thanks.

    Ken Xie -- Founder, Chairman & Chief government Officer

    yes, I suppose we try to supply a little little bit of colour on that within the script, and that i've used the time period before that the increase being bookend if you will. in the course of the pandemic, you've got quarters the place SMB did well. and i suppose we offered some metrics there about large deals, offers over $1 million, which we consider is a pretty decent proxy for the success that we're seeing in the business.

    I do suppose also the mid-section is coming online for us a little bit more advantageous than probably we noticed in 2020. And we continue to consider that 2020 was an peculiar 12 months, each geographically and across customer segments.

    when it comes to the cadence, when it comes to how to sell the business versus SMB, i'd say absolutely, you're making a large funding and it plays very neatly with the channel partners. there is little question about that the MSSPs, the carriers, and so on. And in these channel companions frequently, primarily distributors, play a job within the business. however to be a hit there, you absolutely need to have a direct sales force it really is helping to convey offers to those channel partners.

    and that i form of made a remark prior about incumbency versus challenger. I consider that's possibly much more crucial than the geography the place you are the challenger and also you're trying to get intellect share from a few of these big key resellers which are linked together with one of the vital legacy firewall companies. I mean, you will have in fact acquired to partner with them, to bring deals to them and persuade them with that method. and i believe we're starting to see that music and take grasp for us.

    Irvin Liu -- Evercore -- Analyst

    received it. thank you.

    Operator

    thank you. Our next question comes from the line of Fatima Boolani with UBS. Your line is open

    Fatima Boolani -- UBS -- Analyst

    respectable afternoon. And thanks for taking the questions. Keith for you, i used to be hoping you might share some extra particulars around the expectations of the SD-WAN combine that you've got embedded on your assistance. How should still we think about that? and certainly, how are you brooding about it? And the place are the incremental areas of budgets or greenbacks and sooner or later share gains within SD-WAN/SASE going to come back from between the carrier market, as well as the enterprise DIY market?

    Keith Jensen -- Chief monetary Officer

    yes, I feel-hello Fatima, first-class to listen to from you once again. I consider in terms of SD-WAN, the way we go to our funds and we would describe SD-WAN as you heard us earlier than, SD-WAN is a use case for the firewalls, corresponding to OT micro-segmentation, zero have confidence, and so on. And we're not always susceptible to building our models, if you will, by way of used instances for the firewalls, nor in a similar fashion necessarily by products. We do analyze our pipeline and we do sanity examine against Gardner projections for boom and things of that nature to be sure that we're in the range, in case you will. So, i might predict that.

    The different remark i'd offer is Ken has been somewhat clear for atmosphere the purpose early on, that he wanted SD-WAN to be 5% of billings. And we got there and he moved it to 10%. And we bought there and now he has moved it to fifteen%. So, or not it's a little bit of flow cheese, I bet for Ken, in terms of surroundings goals for us. but it really is exceptional. We like that.

    and that i think you really kind of answered your own query in terms of boom investments. where we might spend funds, I believe, that provider service provider alternatives for both SD-WAN and SASE are key areas for these investments. however i could hand it returned to Ken.

    Ken Xie -- Founder, Chairman & Chief govt Officer

    sure, I do trust SD-WAN can be a bigger, lengthy-time period market and we wish to be the #1. And also like we do see a lot of talents even this work-from-home lot of commercial enterprise had to do loads of provider give [indecipherable], nevertheless where small percent were early stage to using the SD-WAN. So that's the place-and also, we now have big competencies the usage of our SoC4 chip to assisting this like one-field answer which has about 20 times more suitable efficiency and a a lot lower can charge in comparison to the second nearest competitor. So it is the place is there large chance with the surest know-how and working carefully with a partner toward protecting growing SD-WAN. So we do see there may be a major expertise. And we are also trying to be the number 1 soon.

    Operator

    thank you. Our subsequent query comes from the road of Hamza Fodderwala with Morgan Stanley. Your line is open.

    Hamza Fodderwala -- Morgan Stanley -- Analyst

    hi guys, good night. And thank you for taking my question. i used to be wondering on the core variety of firewalling aspect, how lots of the demand are you seeing come from used cases round micro-segmentation, especially given some of those contemporary cyberattacks?

    Ken Xie -- Founder, Chairman & Chief executive Officer

    We do have loads of asking about how to at ease internally no matter if inside ourselves and enterprise are without doubt in the data core. however I need to say protection nevertheless want a maximum enterprise in energy to system the site visitors compared to large solution. My estimate doubtless constantly it be 3,000 5,000 ton extra business energy obligatory. it really is the place so if we can not clear up that velocity problem become a big different kind of a managed deployment, you reveal is still greater tricky. this is additionally the AC takes more knowledge could be 5 to 10 instances more suitable performance computing power and then move lessen than different software-best strategy.

    So, it's lots of requests, however I must say, or not it's no longer many solutions can want summer requests, as a result of inside, whether with in a campus or within a knowledge center, the community velocity tend to be effortlessly 10 to 100 instances extra sooner than the one strategy. I suggest, the one connection. So that is the place we are working with the customer or the companion directly. And additionally combined both the WAN safety, and the LAN safety and the whole infrastructure safety is greater critical. but with these days work-from-home with the Zero-have confidence network access you ought to be, make the total infrastructure cozy.

    So, I see a major market capabilities for the inside segmentation inside information middle of campus safety, but it surely's also a difficult job to satisfy a velocity requirement, in comparison networking and additionally make certain it will probably comfortably be deployed and easily managed.

    Hamza Fodderwala -- Morgan Stanley -- Analyst

    thank you for the color.

    Ken Xie -- Founder, Chairman & Chief executive Officer

    thank you.

    Operator

    thanks. Our subsequent question comes from the line of Saket Kalia with Barclays. Your line is open.

    Saket Kalia -- Barclays -- Analyst

    k, super. hey, thanks for taking my query here, guys. Keith, possibly for you simply going back to the Non-FortiGate part of the company, do you see any developments in most likely market phase or geography that is adopting Non-FortiGate at bigger prices? and i best ask that as a result of with the starting to be business company, along with your growing commercial enterprise business, that's, i might think about more of the businesses would possibly be extra willing to work with distinct professional companies. So is Non-FortiGate part of the enterprise, perhaps greater weighted toward the mid-market or in all probability international?

    And relatedly, simply sort of large brush is how is that Non-FortiGate business variety of split between products and capabilities? Sorry, there is a great deal there. Does that make sense?

    Keith Jensen -- Chief economic Officer

    sure, there's a whole lot there. And answering no from me makes experience. How is that? appear I do not think the product service combine between-we might seem about this and speaking about previously, the FortiGate versus non-FortiGate, the product service combine isn't distinctive in any meaningful means, if you will, should you seem at the combine. And once more, we're selling options, so you're typically bundling that with a firewall mobile.

    to peer the Non-FortiGate billings, boom at that 50% quantity and considering the mixture of the business, I think, definitely makes us very excited. it be definitely a little bit counter-intuitive in terms of the place itself. For the last a couple of quarters the Americas has completed very, very neatly with selling the textile. and that i've been on cell calls with very significant businesses that want to be aware of an awful lot extra concerning the fabric. Now that they've turn into relaxed with the firewall.

    I doubtless went into those conversations socket with plenty of the equal expectation that you simply perhaps described, which is, that could be whatever that performs greater to the SMB a part of the company side of massive business. and that i do consider it does. I do believe the business willingness and in the U.S. you see the commercial enterprise willingness to interact on the cloth became probably a sign of a couple of things. One is, on the end of the day, everybody has got a finances and this is a extra in your price range method to go about doing it. that you would be able to control your infrastructure lots easier possibly with a single vendor method than you may in any other case.

    and that i consider the regular working equipment running on it or being built-in to OS/7 is something that's very enjoyable. after which you start talking to the vision a couple of SASE providing this is running on an built-in OS7 gadget, as well. So, I gave you a great deal there. but to provide colour to it, I suppose, the long-winded response can be, it is not proven to be entertaining to a measurement of consumer or to a geography.

    Saket Kalia -- Barclays -- Analyst

    That makes experience. Thanks, Keith.

    Operator

    thanks. Our internet query comes from the line of Keith Bachman with financial institution of Montreal. Your line is open.

    Keith Bachman -- bank of Montreal -- Analyst

    thanks very an awful lot. i'm going to comply with-on Saket. and i have one question to keep inside Peter's suggestions, but i go to damage it into a few sub parts. On the non-FortiGate facet as neatly. i wanted to ruin it into:

    A) is there the rest over the subsequent three hundred and sixty five days that you just study, that you simply suppose in specific is pleasing or exciting?

    B) Keith, is there the rest you might breakout on attach prices, the place you at the moment stand on the non-FortiGate side to connect rates? it would appear to me that there is nevertheless a hell of lots of room to run there. simply in case you analyze your put in base the place some opportunities.

    after which c) in case you had to partition the non-FortiGate into cloud and non-cloud in other phrases, there may be loads of, I feel, FortiGate products which are crucial to on-premise instances versus cloud, but there may be a method to simply form of damage it out in percentage dollar intelligent, 50% of or not it's aligned to on-premise deployments versus 50% is cloud deployments. Is there any technique to break that out in the non-FortiGate facet in certain? Thanks very a lot.

    Ken Xie -- Founder, Chairman & Chief government Officer

    yes, charging through the question, I believe, i'm going to appear forward to you.

    Keith Jensen -- Chief monetary Officer

    Then i am broke. I believe there became-i'm going to steer that the tough query or the fun question for Ken at the end which is, in case you seem to be out over one year, what is going on to take off in non-FortiGate. Keith, i'd doubtless aspect you lower back to if we didn't do it in Analyst Day in March, we failed to do it in the Analyst Day in November 19, the place we gave some breakdown of the fabric items between what we call cloud and what we call infrastructure. and you may believe of that as being hardware to me support reply your query there.

    I suppose if you use the term attach rate, we may use the time period penetration cost.

    Keith Bachman -- financial institution of Montreal -- Analyst

    yes.

    Keith Jensen -- Chief economic Officer

    And by way of this is, for a customer this is a firewall dealer, how many-or as you start your enlargement possibility Keith internal these clients, what category of penetration are you seeing and how are you going to market, if you will, and inspiring the income group and the advertising team to whatever that quantity is expanding the penetration. and i would say this is whatever that is actually been a local of center of attention, i would say, for us greater lately over the final couple of quarters. and i suppose this is in reality in the mean time greater of we're completely happy with it, don't get me incorrect. however I feel at the moment it's more of an interior metric that we're using with our revenue team and our marketing crew. And to a point with our engineering group.

    Ken Xie -- Founder, Chairman & Chief government Officer

    yes, exquisite. I believe also I doubtless not go to element backyard of number up to now the non-FortiGate almost doubled FortiGate world within the remaining few years or so. I do not see any altering of the trend presently. however really from consumer end goal or not it's a-they also asked what's the rationale they really want to be extra consolidate, make the complete infrastructure managers working collectively, all this sort of issues, which are working fairly smartly with us as a result of we design the product; we are working 40 gig from day one. and then making an entire textile working together to combine, automate, the entire security answer there. So it really is the place the-but also we see there's still small percent customer has probability [Phonetic] to grow and the identical time there may be a new productiveness arising to working with forty gig. So that is the place we do see-we doubtless retain the style, the non-FortiGate will maintain and develop faster. and probably finally even the business, maybe more than 40 gig, might be in just a few years.

    Keith Bachman -- bank of Montreal -- Analyst

    okay. thanks.

    Operator

    thanks. Our subsequent query comes from the line of Michael Turits with KeyBanc. Your line is open.

    Michael Turits -- KeyBanc -- Analyst

    howdy guys. For Ken and Keith do you see any change within the class of tasks, in security that you simply were seeing ultimate yr, primarily for the move to work-from-domestic versus this yr, or we now have worked from domestic as well as back-to-workplace? And as a part of that, Keith, you mentioned, I consider, announcing that you are seeing, I suppose, some greater willingness to do firewall replacements this yr. Is that also part of it?

    Ken Xie -- Founder, Chairman & Chief govt Officer

    sure, ultimate yr work-from-house is extra like a patch, whatever they have. And without altering a good deal of infrastructure this is basically thinking, redesigning infrastructure the place to leverage make a much better know-how like SD-WAN or any other, and at the identical time making form of a much better answer in a 0-believe ambiance that is a whole lot extra comfy. So that is likely-but still in the early stage. We do see loads of our gross knowledge there. nonetheless it's whole infrastructure altering compared to kind of last yr, faster like a patch answer.

    Keith Jensen -- Chief economic Officer

    sure, Michael, i might add to Ken's feedback. I consider the headline is whether or not the tailwinds coming to your safety is right of intellect for therefore many organizations at the moment, so many CIOs and SIOs and even if that's solo wins, or it be work-from-home it became Microsoft, a little challenge is to ramp up a ransomware. or not it's just-it's a yr, I suppose, that a lot of CIOs and SIOs are concentrated on safety for loads of diverse factors. I do feel that there changed into-for us in the U.S. market, in case you will, and Ken has stated this earlier than, a little extra difficult to claim in the middle a part of last year, or not it's variety of a 12 months to get intellect share from CIOs and SIOs to have a conversation about how to retailer money whereas improving efficiency of their firewall. I think those opportunities are starting to appear more in terms of getting out and having valued clientele take their possibilities, take that assembly if you will. and i feel there's additionally, some of those better deployments that can go on for, well over a year or a couple of years, I think, a few of these deployments, possibly have been a little bit stalled if you will, closing 12 months and they're coming back online as we analyze 2021.

    Michael Turits -- KeyBanc -- Analyst

    So simply to make clear, higher deployments are beginning to come again online. And so is that the reply that people are extra willing to discuss displacements of competitors this 12 months than remaining 12 months?

    Keith Jensen -- Chief fiscal Officer

    Is it the answer to which-are you asking if i am when you consider that the answer is yes, or you're asking if this is the driving force of the company, i'd say sure; when you are asking if that is be driver of the enterprise, I do not feel so.

    Michael Turits -- KeyBanc -- Analyst

    No, just in case you see more.

    Keith Jensen -- Chief fiscal Officer

    sure.

    Ken Xie -- Founder, Chairman & Chief executive Officer

    yes, there are more spend past the normal deployment. And also like a extra gadget, numerous and greater infrastructure should be comfy.

    Michael Turits -- KeyBanc -- Analyst

    Thanks guys.

    Operator

    thank you. Our last query comes from the line of Patrick Colville with Deutsche financial institution. Your line is open.

    Patrick Colville -- Deutsche bank -- Analyst

    Thanks for squeezing me. am i able to just sort of just finish it off on a multi-half? I guess the primary one can be nearly linearity. last yr, the linearity between one and two is a form of unusual. So simply support us take into account how that could play out in fiscal 2021?

    after which I wager my kind of 2d part, if i may is, product revenue, this quarter turned into out of the ordinary. Baked into information, I wager, there's a sort of the rest of the year is greater like a form of mid-teens increase costs. simply to assist us understand, is anything else that's value flagging in regards to the variety of performance in the relaxation of the year versus 1Q? thank you.

    Keith Jensen -- Chief monetary Officer

    sure, I believe that, if you get at ease with the company model, you remember the product and services and how very predictable that larger margin capabilities profits is. I believe that we did take this because the opportunity to carry product salary. We implied product revenue tips, if you will, should you reverse engineer after we provide the carrier revenue guidance by way of about 5 facets. and that i feel that takes you to about 17% when it comes to our information now for the entire year. And we will see how the 12 months performs out. I suppose we feel good about it.

    when it comes to linearity from Q1 to Q2, i would doubtless factor you to one among our exact consequences that we had remaining yr in Q1 and Q2. And our precise results in Q1 of this yr and our guidance for Q2.

    Patrick Colville -- Deutsche financial institution -- Analyst

    that's very clear. Thanks to your time.

    Operator

    thank you. i will now want to turn the name again over to Peter for closing remarks.

    Peter Salkowski -- vice president of Investor relations

    thanks, Rowanda. i love to thank every person for joining the name these days. Fortinet might be attending a number of conferences within the second quarter, we have the J.P. Morgan convention on may 25, Alliancebernstein on June 2, and financial institution of america is June 8. displays and webcasts hyperlinks are up on our web site. thanks very a good deal. Have a very good day. And please reach out if in case you have some other questions. Have an outstanding day. thank you. Bye-bye.

    Operator

    [Operator Closing Remarks]

    period: 63 minutes

    call contributors:

    Peter Salkowski -- vp of Investor family members

    Ken Xie -- Founder, Chairman & Chief government Officer

    Keith Jensen -- Chief economic Officer

    Rob Owens -- Piper Sandler -- Analyst

    Brian Essex -- Goldman Sachs -- Analyst

    Jonathan Ho -- William Blair -- Analyst

    Ben Bollin -- Cleveland research -- Analyst

    Tal Liani -- bank of the united states -- Analyst

    Sterling Auty -- JPMorgan -- Analyst

    grey Powell -- BTIG -- Analyst

    Shaul Eyal -- Cowen -- Analyst

    Adam Tindle -- Raymond James -- Analyst

    Andrew Nowinski -- D.A. Davidson -- Analyst

    Irvin Liu -- Evercore -- Analyst

    Fatima Boolani -- UBS -- Analyst

    Hamza Fodderwala -- Morgan Stanley -- Analyst

    Saket Kalia -- Barclays -- Analyst

    Keith Bachman -- financial institution of Montreal -- Analyst

    Michael Turits -- KeyBanc -- Analyst

    Patrick Colville -- Deutsche financial institution -- Analyst

    more FTNT analysis

    All salary name transcripts

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