Jul, 2001 : VPN Services to Generate $7.5B by 2005, Study Says
📅 - Internet protocol virtual private networks (VPNs) havebecome a mainstream technology, one that so far has proved immune to thecontinuing economic woes, according to a recent report by IDC.
The report says that demand for these services has never been higher and ison the verge of exploding. IDC forecasts revenue generated from IP VPNequipment will more than triple from $2.3 billion in 2000 to $7.5 billion in2005.
"IP VPNs are attractive for their low cost, ubiquity, and the flexibilitythey provide in ad hoc connectivity," said Jason Smolek, an analyst withIDC's IP VPNs research program. "Companies that deploy IP VPNs don't need tobuild private lines between their sites, and for organizations with multiplesites, this represents huge cost savings in terms of capital and time. Italso makes an IP VPN an excellent vehicle to e-enable a company becausebusiness processes can be linked without resorting to expensiveinfrastructure investments."
For the next few years, IP VPN-enabled equipment should be more popular thandedicated IP VPN equipment. However, the latter is currently growing faster.While IP VPN-enabled equipment revenue will increase at a compound annualgrowth rate of 24% from $1.7 billion in 2000 to $5.1 billion in 2005,dedicated IP VPN equipment will earn a CAGR of almost 34% during the sametime frame.
Routers and firewalls account for the largest share of the IP VPN-enabledequipment segment. Together, they will account for more than 70% of thesegment's revenue through 2005.
IDC published these results in "Worldwide IP VPN Equipment Market Forecastand Analysis, 2000-2005." To purchase this report, call IDC's PR hotline at508-988-7988 or email ctoffel@idc.com.
The report says that demand for these services has never been higher and ison the verge of exploding. IDC forecasts revenue generated from IP VPNequipment will more than triple from $2.3 billion in 2000 to $7.5 billion in2005.
"IP VPNs are attractive for their low cost, ubiquity, and the flexibilitythey provide in ad hoc connectivity," said Jason Smolek, an analyst withIDC's IP VPNs research program. "Companies that deploy IP VPNs don't need tobuild private lines between their sites, and for organizations with multiplesites, this represents huge cost savings in terms of capital and time. Italso makes an IP VPN an excellent vehicle to e-enable a company becausebusiness processes can be linked without resorting to expensiveinfrastructure investments."
For the next few years, IP VPN-enabled equipment should be more popular thandedicated IP VPN equipment. However, the latter is currently growing faster.While IP VPN-enabled equipment revenue will increase at a compound annualgrowth rate of 24% from $1.7 billion in 2000 to $5.1 billion in 2005,dedicated IP VPN equipment will earn a CAGR of almost 34% during the sametime frame.
Routers and firewalls account for the largest share of the IP VPN-enabledequipment segment. Together, they will account for more than 70% of thesegment's revenue through 2005.
IDC published these results in "Worldwide IP VPN Equipment Market Forecastand Analysis, 2000-2005." To purchase this report, call IDC's PR hotline at508-988-7988 or email ctoffel@idc.com.
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