SOURCE: Infonetics Research

July 09, 2007 16:35 ET

Managed security market doubling by 2010; managed encrypted VPN market shrinking, says Infonetics

CAMPBELL, CA--(Marketwire - July 9, 2007) - The managed security service market is forecast to more than double between 2006 and 2010, when it will reach $12.1 billion, according to a new report from Infonetics Research, "Security and Encrypted VPN Services."

The report indicates the security service market is being driven by increasing global demand from organizations of all sizes due to the proliferation of security threats of all types, the complexity of current security solutions, and the desire of many service providers to add revenue and improve margins. While there will never be a major spike in managed security service spending, the report states, strong incremental growth will continue beyond 2010.

Meanwhile, the managed encrypted VPN service market inched up 4% between 2005 and 2006 to $20.5 billion, but is expected to decline in coming years.

"MPLS services are really starting to steal business away from encrypted VPNs. This is having a significant impact on spending for managed IPSec site-to-site VPNs, especially among large organizations, who are starting to migrate from complex self-managed IPSec VPNs to simpler carrier-managed MPLS services," said Jeff Wilson, principal analyst for network security at Infonetics Research.

Other highlights from the report:

--  In 2006, 49% of security service revenue comes from managed firewall
    services, 27% from content security, 24% from other security services;
    these proportions will shift significantly by 2010
--  In 2006, 97% of VPN service revenue comes from IPSec VPNs, 3% comes
    from SSL VPNs; by 2010 SSL VPN revenue rises considerably
    
Infonetics' report tracks annual managed encrypted VPN service revenue by technology (IPSec vs. SSL), by remote access vs. site-to-site, by CPE- vs. network-based services, and by organization size, and tracks managed security services by service type (managed firewalls, content security, and other security services), CPE- vs. network-based services, and organization size. Market size and forecasts are presented for North America (with US and Canada breakouts), EMEA, Asia Pacific, CALA, and worldwide.

Download report highlights at www.info.infonetics.com. For sales, contact Larry Howard, vice president, larry@infonetics.com, (408) 583-3335.

Infonetics Research (www.infonetics.com) is an international market research and consulting firm specializing in data networking and telecom. Services include market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

Contact Information

  • Press Contact:
    Jeff Wilson
    Principal Analyst
    Infonetics Research
    (408) 583-3337
    Email Contact