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Better Protection - Hardware or Software Firewall?

A firewall is a specialised computer which has but one purpose - to prevent bad network traffic from passing between an untrusted network, like the Internet, and a trusted network, like your LAN, your computers, and the programs that you run on them.

A hardware, or appliance, firewall runs on a separate piece of equipment, and provides perimeter protection, to a group of computers. A software, or personal, firewall runs on a host computer, and protects only that computer. There are variations which may use the hardware of a personal computer, and provide perimeter protection.

Please don't confuse the concept of a firewall with that of a router - NAT router, or enterprise network router. A firewall is neither of those.

Both hardware and software firewalls require an operating system, or some interface between the user and the hardware.

The hardware firewall contains a stripped down operating system or code processor of some type, that provides the ability to examine, filter, and / or pass packets between the interfaces (WAN and LAN). It may also contain a small web server or configuration processor, so the user can change the filtering. The software firewall runs under an external operating system, that also lets you use your computer for non-firewall purposes, and lets you change how you use your computer.

There are advantages and disadvantages to both. Saying that one is better than the other is like saying Coke is better than Pepsi, or Chevrolet better than Ford. You can only compare the two, when considering the specific environment where protection is needed.

Hardware Firewall

Advantages:

Disadvantages:

Software Firewall

Advantages:
Disadvantages:

Now none of these points are 100% significant by themselves. Some hardware firewalls are more versatile, and more configurable in hardware and software. And there are hooks in software firewalls that restrict exploits, and make them less vulnerable. But these are the key differences between the two classes of protection.

Hybrid Solutions
There are variations in the distinction between hardware and software. Some security experts like to promote a third model, which they call a software firewall. They will take a surplus desktop computer, add a second network card, remove all non-essential accessories like a sound system, and make a perimeter protection device out of it.

The experts who like to build these custom perimeter protection devices claim that they have the advantages of both a personal and perimeter firewall, and none of the disadvantages. But examine these custom devices more closely, and you will find subtle disadvantages.

There is also the possibility of a hardware firewall, sitting inside your computer. The nVidia nForce is probably the first, but surely not the last, device of this type.

A well designed security strategy uses both perimeter and personal protection, and more.