VPN Services Market To Rocket To $29 Billion by 2009: Report

The VPN services market is continuing its spectacular growth, and is slated to hit $29 billion by 2009, up 22% from the $23 billion in 2005 sales, says a new report from Infonetics Research.

The report also found that the managed security services market is on a significant growth curve as well, and will jump 68% to $8 billion in 2009, from $5 billion in 2005.

Infonetics attributes the steep growth to an increase in worldwide deployment of MPLS, the complexity of deploying VPN and security solutions, and the constant increase in network-borne threats.

The report also found:

* IPSec revenue will decline annually between now and 2009, while MPLS, MPLS/IPSec, and SSL revenue will rise.* In 2005, 77% of VPN service revenue came from site-to-site VPNs, with the remaining 23% coming from remote access VPNs.

* In 2005, nearly half of managed security service revenue came from large organizations, approximately a third from medium organizations, and 21% from small ones.