VPN market to hit UA$29b by 2009

The virtual private network (VPN) services market was worth US$23b in 2005 and is expected to grow another 22 per cent to hit US$29b by 2009, according to an industry analyst.

The managed security services market also grew to almost US$5b in 2005 and is forecast to jump 68 per cent to US$8b in 2009, research by market analyst Infonetics Research has found. 

"Both markets are increasingly lucrative due to increased worldwide deployment of Multi Protocol Label Switching [MPLS] and the complexity of deploying VPN and security solutions," Infonetics said in its regular report on the VPN and security services market.

The study predicted that the uptake of MPLS, MPLS/IPSec, and Secure Sockets Layer services will increase revenue in those areas, while standard IPSec revenue will decline every year through to 2009.

Infonetics suggested that the increase in managed services is a way for businesses to deal with the complexity of today's security climate.

"The number and variety of attacks affecting most organisations is increasing at an alarming rate, and the technologies needed to effectively combat all of the possible attacks are simply too difficult for many organisations to deploy themselves," said Jeff Wilson, principal analyst for VPNs and security at Infonetics.

"In particular, attacks aimed at specific types of content, from business applications like Oracle and SAP to instant messaging traffic, are wreaking havoc on companies of all sizes."

The research found that 77 per cent of VPN services revenue came from site-to-site VPNs in 2005, with remote access VPNs accounting for the remainder.

Large organisations made up just less than half of the total revenue for managed security services. Medium-sized firms accounted for around a third and the remaining fifth came from small businesses.

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