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Software firewalls
Software firewalls include any type of firewall that is installed on a local device rather than a separate piece of hardware.
The big benefit of a software firewall is that it's highly useful for creating defense in depth by isolating individual network endpoints from one another.
However, maintaining individual software firewalls on different devices can be difficult and time-consuming.
Furthermore, not every device on a network may be compatible with a single software firewall, which may mean having to use several different software firewalls to cover every asset.
Hardware Firewalls
Hardware firewalls use a physical appliance that acts in a manner similar to a traffic router to intercept data packets and traffic requests before they're connected to the network's servers.
Physical appliance-based firewalls like this excel at perimeter security by making sure malicious traffic from outside the network is stopped before the company's network endpoints are exposed to risk.
The actual capabilities of a hardware firewall may vary depending on the manufacturer some may have a more limited capacity to handle simultaneous connections than others.