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VPN and security services markets robust and growing

The Virtual Private Network (VPN) services market continues to grow strongly, driven by the productivity improvemen...


August 3, 2005  


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The Virtual Private Network (VPN) services market continues to grow strongly, driven by the productivity improvements and cost savings VPNs offer, combined with the complexity of deploying VPNs organization-wide, says Infonetics Research in its latest market size and forecast report, VPN and Security Services.

The security services market is also strong and growing fast, fueled by increasing global demand due to the proliferation of viruses, malware, spyware, and hacking, the complexity of current security solutions, and the desire of many service providers to add revenue and improve margins.

These drivers will push worldwide VPN service revenue to US$29.8 billion in 2009, and worldwide security service revenue to US$8.1 billion in 2009.

“Hacking has moved from an ego-driven hobby to a huge business,” said Jeff Wilson, principal analyst at Infonetics Research. “The goal of many hacks these days is to generate revenue or steal valuable information; they have become more organized, better funded, better equipped, and more dangerous.

"This drives organizations of all types to find ways to protect themselves against lost productivity, revenue, and assets due to hacking, and for many, that means turning to a service provider for help.”

The study found that:

* Roughly $10 dollars is spent on VPN services for every $1 spent on VPN products, and that

* In 2004, 78% of security service revenue was from customer premise equipment-based services, 22% from network-based services

The report tracks annual VPN service revenue by service type, technology, remote access vs. site-to-site, intranet vs. extranet, and organization size, and tracks security services by service type and organization size.

Further information is available at www.infonetics.com.


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