Secure network spending seen over $46 bln by 2006

[InfoSec News <isn () c4i org>]

http://www.cnet.com/investor/news/newsitem/0-9900-1028-20025065-0.html?tag=ats

06/10/02 04:47 PM
Source: Reuters

SAN FRANCISCO, June 10 (Reuters) - Spending on "virtual private
networks" will grow more than 100 percent over the next four years,
topping $46 billion worldwide in 2006 as companies increasingly jump
online and the ranks of telecommuting employees grow, according to a
forecast released on Monday.

Virtual private network (VPN) technology allows users of private
networks, mainly corporate networks, to transmit secure electronic
data and content over public online networks.

That allows companies to replace expensive private networks with less
expensive online access to the Internet.

San Jose, California-based market research firm Infonetics Research
Inc. forecast that worldwide spending by VPN users on VPN products and
services will rise 117 percent to $46.2 billion in 2006 from $21.3
billion this year.

Affordability and security will join rising electronic commerce and
more and more remotely-based and mobile workers as spurs to increased
VPN spending by companies, said Jeff Wilson, executive director of
Infonetics Research.

"Because of the cost savings potential of VPNs, and general interest
in security, the VPN market is still growing strongly despite a nearly
two-year-old economic downturn," Wilson said.

Infonetics said its forecast is based on interviews with 240
purchasing decision-making network managers at small, medium, and
large organizations.

Separately on Monday, VPN technology provider Check Point Software
Technologies Ltd. said its current second quarter was going according
to plan, with healthy demand from customers despite the weak economy.  
The Israeli company makes software to block intruders from breaking
into virtual private corporate networks.

 

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