UTM vs NGFW in 2025: Which One to Choose? 

Next-generation firewalls (NGFWs) and unified threat management (UTM) software are two network security technologies. However, vendors frequently use different definitions of UTMs and NGFWs, hence security professionals should understand the distinction between UTMs and NGFWs based on their:

• application scope,
• objective,
• and features & customization.

See what is UTM and NGFW. Compare two technologies based on analysts’s research:

UTM vs NGFW

Both technologies have various definitions on the market. The concepts of NGFW and UTM  originally were offered by analyst organizations IDC and Gartner.

IDC defines UTM as a security appliance that includes a firewall, gateway, anti-virus program, and intrusion detection and prevention (IDS/IPS) or IPS tools.

Gartner defines an NGFW as one device that has an integrated IPS with deep packet scanning, traditional first-generation FW functions (network address translation (NAT), stateful protocol inspection, VPN, etc.), and the ability to identify and regulate network applications. 

Since the buyers and sellers have used the phrases interchangeably. UTM can contain NGFW capabilities like application ID and control, while NGFW can include UTM capabilities like gateway antivirus software.

The names are frequently used interchangeably since they both refer to a single device that has unified functions. However, there are network-based security product categories that can be classified as NGFWs or UTMs, for example:

1. Application scope

• Unified threat management (UTM) products are all-in-one network security platforms designed to be simple. UTM tools mainly serve SMBs, not large-scale organizations.

• Next-generation firewall (NGFW) products have a broader application scope and aim to protect the networks of organizations ranging from SMBs to large-scale organizations.

2. Objective

• An UTM tool is responsible for scanning all computer systems and servers on a network, rather than just one. UTM tools follow and monitor all data transported over the network.

• NGFW tools’ primary role is to check the computer’s incoming and outgoing data for harmful Trojan horses, spyware, and malware that might damage the system.

3. Features

• UTM solutions include first-generation firewalls and IPS functionalities, however, they do not provide application awareness and are not typically integrated into single-engine systems.

• NGFW tools’ may include threat intelligence, mobile device security, data loss prevention, technologies that allow users to customize application control, and even certain firewall rule definitions.

4. Customization

• UTM technologies offer more standard policies, administration, and reporting tools that are easy to deploy and administer.
   
• NGFW technologies are suited for companies that seek to modify their security rules and prefer personalized reporting and control.

Which one to select: UTM or NGFW?

UTM systems provide enterprise-level protection without the additional layer of management. This is especially valuable for small, medium-sized, or geographically spread small to large companies that do not have specialized security or IT departments. Or, companies that lack the time, money, and security knowledge. Some examples include:

1. Medium-sized businesses

• E-Commerce companies: Online retailers deal with customer payment information and personal data.
• Technology firms: Companies developing software, hardware, or providing tech services need to protect intellectual property and customer data.

2. Geographically spread franchise businesses

• Food and beverage chains: Fast-food restaurants, cafes, and other franchise-based businesses.
• Service franchises: Businesses like fitness centers, car rentals, and other service-oriented franchises.

NGFWs are suitable for organizations, particularly those with complex networks, sensitive data, and high-security requirements including:

1. Large enterprises

• Financial institutions: Banks, investment firms, and insurance companies handle sensitive financial data.
• Healthcare organizations: Hospitals, clinics, and pharmaceutical companies that must comply with regulations like HIPAA.
• Discount stores: Retail chains with multiple physical locations can benefit from NGFW solutions to ensure uniform security across all stores.
• E-commerce operations: Retailers with both physical and online presences can integrate security for their e-commerce platforms and in-store systems.

What is unified threat management (UTM)?

Unified threat management (UTM) is a method of information security in which a single hardware or software integrates with security software (e.g. IPS tools, network security policy management software (NSPM)).

UTM helps organizations manage different elements of network security deployed via different applications, each with its network security policies and rules (see Figure 2). 

In 2004, The word unified threat management (UTM) originated by the analyst company IDC. 

Figure 1: Integration flow of security appliances and UTM 

Source: Opus One¹

Some of the common features that UTM software often integrates with are:

• Firewall audit
• Intrusion prevention system (IPS)
• Data loss prevention (DLP)
• Network  traffic monitoring system
• Network access control: Role-based access control (RBAC) and mandatory access control (MAC).
• Virtual private network (VPN)

How does UTM Work?

A UTM solution detects vulnerabilities in an organization’s network using two inspection approaches:

1. Flow-based inspections collect and scan the data transferred across the network to detect potential risks, such as viruses, intrusions, and hacking attempts.
   
   To secure a private LAN from a public WAN, the UTM software forwards traffic and analyzes network packets following a sequence of procedures, as shown in the picture below.

Figure 2: Flow-based inspections

Source: Allied Telesis²

Figure 2 notes:

• IPSEC: IPSEC is a set of protocols for protecting communications between devices.
• TCP MSS: MSS is the maximum TCP (transport control protocol) segment size that a network-connected device may accept. MSS defines “segment” as the total length of the payload.
• PBR: Policy-based routing.
• TC: Traffic control.

2. Proxy-based inspection examines the contents of packets entering and exiting a network security device. Through proxy-based inspection network devices may operate as a proxy and reassemble the network content.
   
   Proxy-based inspection employs an antivirus engine to scan stored data within the network devices and check it against known threat indicators which are stored in periodically updated database files (see Figure 3).

Figure 3: Proxy-based network device scanning

Source: Allied Telesis³

What is NGFW?

Next-generation firewalls (NGFW) combine traditional firewall technology with capabilities such as:

• intrusion prevention systems (IPS),
• encrypted traffic inspection (ETI)
• deep packet inspection (DPI)*.⁴

Network administrators can use an NGFW to create security zones for certain corporate tasks, such as marketing, sales, IT, and manufacturing. Alternatively, an NGFW may be used to create security using the standard three-zone strategy (public, private, and demilitarized zone or DMZ network security).

How does NGFW work?

NGFWs examine deep network traffic to determine where it is originating from. They can gather information about malicious traffic attempting to penetrate the network perimeter and access company data.

Key NGFW features:

Next-generation firewall requirements differ for each supplier, however, they often incorporate a mix of the following:

• Application awareness — filters traffic and applies complicated rules based on applications rather than just ports which allows companies to prohibit traffic from specific applications and keep more control over particular applications.

• Deep-packet inspection — examines the data contained in packets. Deep-packet inspection improves on old firewall technology, which just examines a packet’s IP header to establish its source and destination.

• Intrusion prevention system (IPS) — analyzes the network for harmful activity and prevents it when it occurs. This monitoring can be signature-based (matching behavior to signatures of recognized risks).
  
• External threat intelligence — provides organizations with information about potential security threats from external threat intelligence (e.g. open source blogs or industry-related analysis in web pages etc.) which primarily focuses on threats that exist outside of an organization.

Read more: Firewall assessment.

For guidance on choosing the right tool or service, check out our data-driven sources: network security policy management (NSPM) tools and incident response tools.

Further reading

• Top 10 Microsegmentation Tools
• Intrusion Prevention: How does it work? & 3 Methods
• Role-based access control (RBAC)  
• Network Segmentation: 6 Benefits & 8 Best Practices
• 80+ Network Security Statistics
• Network Security Policy Management Solutions (NSPM)
• Cybersecurity Risk Management

AIMultiple can assist your organization in finding the right vendor. 

External links

• 1. “Evaluating Unified Threat Management Products for Enterprise Networks“. Opus One. Retrieved April 5, 2024.
• 2. “Understanding the Next Generation Firewall and its Architecture“. Allied Telesis. 2020. Retrieved April 3, 2024.
• 3. ”Understanding the Next Generation Firewall and its Architecture“. Allied Telesis. 2020. Retrieved April 3, 2024.
• 4. “What Is a Firewall?“. Cisco. 2024. Retrieved April 3, 2024.