Hardware vs Software Firewall: Key Differences & Examples

Firewalls are still an essential part of any network security strategy, with the global firewall market projected to grow from $15.27 billion in 2024 to $33.19 billion in 2032.¹ However, choosing a firewall isn’t as simple as it used to be. One of the most common questions IT teams face is whether to use a hardware firewall, a software firewall, or perhaps a combination of both.

Understanding what each of these firewall types does can help you make the right call for your business’s size, structure, and security needs. In this blog, we’ll walk through how hardware and software firewalls differ, where they work best, and how to choose the right fit for your environment.

Is a Firewall Hardware or Software?

The short answer is that they can be both. Firewalls aren’t tied to one format. Instead, the term refers to the function – controlling and inspecting traffic – not the physical form. Let’s explore the different types below.

What Is a Hardware Firewall?

A hardware firewall is a device that filters traffic before it enters your network. It usually sits between your internal network and the internet and acts as the first line of defense, inspecting incoming and outgoing data at the perimeter.

Unlike software firewalls, which are installed directly on computers or servers, hardware firewalls operate independently and don’t rely on system resources. They’re typically installed in a telecom closet or server rack and are designed to secure large volumes of traffic.

Benefits of a Hardware Firewall

Hardware firewalls provide several advantages that make them a good fit for businesses with a more centralized infrastructure. These include:

• Network-Wide Protection: A single appliance can monitor and filter traffic for all connected users and devices.
• Dedicated Performance: Hardware firewalls don’t impact endpoint performance since they run on their own resources.
• Stronger Throughput: These devices are designed to process large amounts of data with minimal delay, making them ideal for offices and data centers.
• Advanced Configurations: Many hardware firewalls support VPNs, intrusion prevention, deep packet inspection, and custom traffic policies.

If you manage a larger network or want to minimize the load on individual devices, a hardware firewall can help streamline protection across your entire organization.

What Is a Software Firewall?

A software firewall is an application installed on a device, like a laptop or virtual machine. It monitors traffic on that specific endpoint, including from local apps, web browsers, and even other devices on the same network, and blocks unauthorized or suspicious behavior. 

Software firewalls give you more control over individual machines and are especially useful in environments with remote users, personal devices, or systems that operate outside your network perimeter.

Benefits of a Software Firewall

Software firewalls also offer their own set of advantages, particularly for businesses that need more flexibility in their security management. Some benefits include:

• Per-Device Control: You can set custom rules for what each device is allowed to send or receive, right down to the application level.
• Remote Work Support: Users who connect from outside your office still benefit from a layer of protection.
• Lower Cost: Many operating systems include built-in software firewalls, and others are available through third-party vendors.
• Security Integration: Software firewalls often work alongside antivirus, endpoint detection and response (EDR), and other security platforms for stronger visibility.

These advantages make software firewalls helpful for securing remote devices and cloud workloads without sacrificing visibility or control at the endpoint level.

Examples of Software Firewalls

Here are a few software firewall tools you might find in business IT environments:

• Windows Defender Firewall: Built into Windows OS, it offers basic packet filtering and rule-based controls.
• pfSense: A flexible, open-source firewall platform often used for custom network setups.
• ZoneAlarm: A personal firewall solution with strong app-based control.
• Bitdefender Internet Security: Includes firewall functionality alongside antivirus and web protection.
• iptables/nftables (Linux): Built-in tools for creating and managing firewall rules on Linux systems.

IT teams can configure these software firewalls to block specific apps, restrict traffic by port or IP, and flag unusual activity at the device level.

Hardware Firewall vs Software Firewall: Key Differences

The biggest differences when comparing hardware vs software firewalls are where and how traffic is filtered. Here’s a quick breakdown:

If you need broad coverage across many users or sites, a hardware firewall is likely the better choice. If you need flexible, application-level control for specific endpoints, software firewalls have the edge.

When To Use a Hardware vs Software Firewall

Choosing between a hardware vs software firewall isn’t about which is “better” – it’s about which fits your operational and security needs.

Use a hardware firewall when:

• You want centralized control over a large office, data center, or campus network
• Your infrastructure supports many users or devices, and you need consistent traffic filtering
• You want to offload processing tasks from individual devices
• You need advanced capabilities like site-to-site VPNs or high-throughput inspection

Use a software firewall when:

• Your team includes remote workers or mobile users who connect outside your office network
• You need traffic rules for individual applications or services
• You’re protecting virtual machines or cloud-hosted workloads
• You operate in a bring-your-own-device (BYOD) environment where individual systems need their own controls

In many environments, especially hybrid or distributed ones, the best solution is to use both. For example, your office may have a hardware firewall managing network traffic, while individual laptops used by remote employees have software firewalls for protection outside the perimeter.

Build a Stronger Firewall Strategy With Aseva

With employees working from anywhere, cloud apps replacing on-premise systems, and cyber threats continuing to evolve, networks are more dynamic than they used to be. A single firewall, whether hardware or software, often isn’t enough.

Today, a layered strategy is more effective. Here’s how organizations are strengthening their firewall approach:

• Next-Generation Firewalls (NGFWs): These combine the performance of hardware firewalls with advanced features like threat detection, identity-based policies, and application filtering.
• Cloud-Native and Software-Defined Firewalls: Built for virtualized or multi-cloud environments, these firewalls scale as your infrastructure grows.
• Managed Firewall Services: For teams without in-house security experts, outsourcing firewall management ensures policies are maintained, threats are monitored, and changes are made as needed.

At Aseva, we help businesses design, deploy, and manage firewall solutions that align with their environment – whether it’s a fully remote team, a multi-location enterprise, or a hybrid cloud infrastructure. Our team works with you to implement the right combination of hardware and software firewalls, powered by leading tools like Fortinet.

Ready to take a smarter approach to firewall security? Get started today.

Sources:

1. https://www.marketsandata.com/industry-reports/enterprise-firewall-market