The virtual private network (VPN) service market reached $23 billion in 2005 and is expected to grow by 22% over the next three years.
According to Infonetics Research, a U.S.-based research firm, the managed security services market generated nearly $5 billion in 2005 and is projected to expand by 68% to $8 billion within three years.
“Both of these markets will see rapid profitability due to the speed and scale of deploying MPSL (Multi Protocol Label Switching), SSL (Secure Sockets Layer), and global security solutions. Meanwhile, IPSec revenue will gradually decline each year,” Infonetics predicts.
“The number and diversity of attacks targeting organizations are increasing at an alarming rate. However, the technologies capable of effectively countering security threats are too complex for organizations to implement on their own,” commented Jeff Wilson, a VPN analyst at Infonetics. “Especially in cases of attacks on specific content types, from Oracle or SAP enterprise applications to instant messaging traffic, the company’s network can be severely compromised.”
Infonetics reports that large organizations account for less than half of the total revenue from managed security services. Mid-sized companies contribute about one-third, while the remainder comes from small businesses.
