Infonetics Research: Managed security market up 21%; managed encrypted VPN market flat in 2007

Market Wire, July, 2008

Communications market research firm Infonetics Research reports that the worldwide managed security services market, including CPE- and network-based managed firewalls, content security, and other security services, will nearly double between 2007 and 2011, when it will reach $13.8 billion.

Infonetics' report, Security and Encrypted VPN Services , shows the managed security services market grew 21% between 2006 and 2007, with roughly half the revenue coming from managed firewalls, and the fastest growth coming from the content security segment.

"The emergence of non-traditional providers like Google and enterprise acceptance of software-as-a-service has boosted the opportunity for content security services, particularly in-the-cloud services, and these services are really driving the strong growth we forecast through 2011. Meanwhile, in the managed encrypted VPN space, the drivers are still there (productivity improvements and costs savings combined with the complexity of deploying them), but MPLS is really starting to steal business away from encrypted site-to-site VPN services," said Jeff Wilson , principal analyst for network security at Infonetics Research.

Other highlights from the report:

--  Content security services revenue is forecast to nearly triple during
    between 2007 and 2011
--  In 2007, large organizations represented 44% of all spending on
    security services, medium organizations 34%, small organizations 22%; by
    2011 large organizations' share will drop while small organizations' share
    will increase
--  The managed encrypted VPN services market inched up 1% between 2006
    and 2007, and is expected to slowly decline over the next 4 years
--  While the overall managed encrypted VPN services market is decreasing,
    the SSL VPN services segment is set to grow at a 25% compound annual growth
    rate (CAGR) from 2007 to 2011
    

Infonetics' report tracks managed encrypted VPN services revenue in 4 breakouts (IPSec vs. SSL, remote access vs. site-to-site, CPE- vs. network-based, and small vs. medium vs. large organizations), and managed security services revenue in 3 breakouts (managed firewalls vs. content security vs. other security services, CPE- vs. network-based, and small vs. medium vs. large organizations). Market size and forecasts are presented for North America (with US and Canada breakouts), Europe/Middle East/Africa (EMEA), Asia Pacific, Caribbean/Latin America (CALA), and worldwide.

For report highlights , log in to Infonetics' online portal from www.infonetics.com (see Network Security area). For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research ( www.infonetics.com ) is an international communications market research firm. Tracking emerging markets since 1990, Infonetics covers a broad range of service provider, product manufacturer, and enterprise and SMB markets, including network security . Services include quarterly market share and forecasting, end-user survey research, service provider survey research, service provider capex analysis, and custom research and consulting.

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