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VPNs: $23B And Growing

Make no mistake about it, Virtual Private Networks (VPN) (define) are still big business. A new report from Infonetics Research pegs the value of the VPN services market in 2005 to have been $23 billion, which represents 14 percent growth over 2004. Growth is expected to continue, hitting $29 billion by 2009. Jeff Wilson, principal […]

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SMK

Sean Michael Kerner

Jul 10, 2006

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Make no mistake about it, Virtual Private Networks (VPN) (define) are
still big business.

A new report from Infonetics Research pegs the value of the VPN services
market in 2005 to have been $23 billion, which represents 14 percent growth
over 2004.

Growth is expected to continue, hitting $29 billion by 2009.

Jeff Wilson, principal analyst of VPNs and Security at research firm
Infonetics, told internetnews.com that the VPN services market growth for
2006 is currently pegged at 11 percent.

In 2005, site-to-site VPNs accounted for 77 percent of the market’s revenue
while remote access only accounted for 23 percent. Wilson noted that a
similar revenue breakdown is likely to continue.

“By 2009 we expect site-to-site will drop slightly to 72 percent and remote
access will grow to 28 percent,” Wilson said.

“There
is a three or four year cycle of spending on remote access versus site-to-site in general, where one is on the rise while the other falls, but the
introduction of SSL VPNs has introduced an extended period of growth for
remote access VPN services.”

SSL-VPNs offer the promise of simple remote access connectivity since from
an end user standpoint they typically involve just a Web browser to access a
corporate network.

They differ from their principal technology competitor
IPSec VPNs in that IPSec typically requires an additional client
application.

This article was first published on InternetNews.com. To read the full article, click here.