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Semiconductor industry

Service Providers to Invest Heavily in VPNs and Security Technologies

Strategic Insights

— 1 min read

Service providers in North America, Europe, and Asia are planning significant investments in virtual private networks (VPNs) and security technologies, including intrusion prevention and next-generation firewalls, over the next year. This shift is expected to drive revenue and profit for these providers, with managed VPNs and security services being their largest source of revenue. According to a study by Infonetics Research, providers will continue to invest in VPN technology, with MPLS, SSL, and IPSec technologies being favored.

Key Takeaways:

  • Service providers in North America, Europe, and Asia plan to invest heavily in VPNs and security technologies over the next year.
  • Managed VPNs and security services are the largest source of revenue for providers, driving significant investments in VPN technology.
  • Infonetics Research conducted formal interviews with 23 carriers that generate over half of the world's managed VPN and security services revenue for this study.
  • The study covers the implementation plans of incumbents, competitive providers, and specialized providers in North America, Europe, and Asia.
  • Providers will continue to invest in MPLS, SSL, and IPSec technologies, which are considered well for VPN and security services.
  • The study aims to help VPN and security product manufacturers understand the state of managed security and VPN services and the opportunities to sell to providers serving these markets.
  • Infonetics Research has offices in Silicon Valley, the Boston Metro Area, and London, and has conducted ongoing discussions with all types of managed VPN and security service providers and VPN and security product manufacturers.

Statistics:

  • 23 carriers that generate over half of the world's managed VPN and security services revenue were interviewed for this study.
  • The study covers the implementation plans of incumbents, competitive providers, and specialized providers in North America, Europe, and Asia.
  • Providers plan to invest heavily in VPNs and security technologies in the next year, driving revenue and profit.
  • Managed VPNs and security services are the largest source of revenue for providers, accounting for significant investments in VPN technology.
  • 50% of the world's managed VPN and security services revenue is generated by the carriers interviewed for this study.

Sources:

  • Infonetics Research, Service Provider Plans for VPNs and Security, North America, Europe, and Asia Pacific 2004.
  • Infonetics Research Information Portal: http://www.info.infonetics.com/
  • Infonetics Research press release: SAN JOSE, Calif., April 21 /PRNewswire/
  • Infonetics Research: http://www.infonetics.com/

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