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Jeff Wilson
Principal Analyst, Network Security
Infonetics Research
(408) 583-3337
jeff@infonetics.com


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

 

CAMPBELL, California, July 7, 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.


Download report highlights from our online portal by logging in above. 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, enterprise voice, unified communications, broadband networks, IPTV, IP video, mobile TV, optical networks, metro Ethernet, carrier routing and switching, wireless, FMC, VoIP, IMS, policy management, subscriber management, service management, carrier capex and opex, and more. Services include quarterly market share and forecasting, end-user survey research, service provider survey research, service provider capex analysis, and custom research and consulting.

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"Content security services revenue is forecast to nearly triple between 2007 and 2011."

Jeff Wilson
Principal Analyst, Infonetics Research
Security and Encrypted VPN Services