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...Home ... Editorial ... News ..News Story Tuesday: December 28, 2010


The Sky’s the Limit for VPN Services


8/8/2005 -- The market for VPN software and services has long been scorching. Owing to a variety of factors, this technology segment should continue to sizzle through 2009.

That’s the conclusion of the latest report from U.K. market watcher Infonetics Research, which suggests that most adopters are motivated by the productivity improvements and cost savings they associate with VPN software and services.

Another hot sector is the security services market, which Infonetics says will continue to grow at an impressive rate, thanks to the proliferation of viruses, malware and spyware, as well as a perceived uptick in hacking activities.

As a result, Infonetics expects worldwide VPN services revenue to approach $30 billion by 2009, while worldwide security service revenue should eclipse $8 billion over the same period.

“Hacking has moved from an ego-driven hobby to a huge business,” said Jeff Wilson, principal analyst at Infonetics Research, in a statement. “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.”

Elsewhere, Infonetics researchers say, roughly $10 is spent on VPN services for every $1 spent on VPN products. And last year, 78 percent of security service revenue was derived from CPE-based services, while 22 percent came from network-based services. -Stephen Swoyer



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