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Cisco: It Takes Two to Twingo

Cisco Systems Inc. today announced it plans to buy security software vendor Twingo Systems Inc. for $5 million in cash, a move that may help bring more price competition in the crowded SSL VPN market (see The Lowdown on SSL VPNs ).

Cisco is planning to incorporate Twingos Virtual Secure Desktop into its WebVPN solution, beginning with the VPN 3000 Concentrator Series. The move is an attempt to steal a march on rival vendors in a burgeoning market.

The good news is that end users are set to gain from this, according to Lehman Brothers analysts, who write in a research note to clients that “pricing pressure is likely to accelerate in this segment over
the medium-term."

The SSL (Secure Sockets Layer) VPN space is one of the fastest growing parts of the security market, according to Lehman Brothers. A number of vendors, including Juniper/NetScreen, Nortel, and Cisco, are all jostling for position.

But prices may not come down immediately, cautions Jeff Wilson, principal analyst for VPNs and security at market research firm Infonetics Research Inc. “Users should investigate the technology to see if it resolves their remote access issues. If it does, then they should know that pricing is going to change significantly over the next year, with the entry of the large players.”

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