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Infonetics Research Forecasts 1,200% Increase in VPN Expenditures From 1999 Through 2003.

SAN JOSE, Calif.--(BUSINESS WIRE)--June 24, 1999--

Infonetics Research, Inc. just completed a new strategic market study on virtual private networks (VPNs) titled User Plans for VPN Products and Services 1999.

In this study the company forecasts that the total worldwide expenditures for service providers, VAR/integrators, and VPN product manufacturers will jump from $2.4 billion this year to just over $32 billion by 2003.

"We're now seeing the early signs of explosive growth in the VPN hardware market, and we're also noting a shift in interest from unmanaged to managed VPN services. The question for end-users at companies of all sizes is no longer if they'll implement VPNs, but when and how," says Jeff Wilson, Director of Access Programs at Infonetics Research.

Of the companies that participated in this study, 85% plan to implement remote access VPNs, 78% plan site-to-site VPNs, and 58% plan extranet VPNs by 2001 (many implement all 3 types of VPNs while others focus on 1 or 2 to fit particular needs).

This study is based on in-depth interviews with 225 network managers at organizations that have VPNs installed or plan to by 2001.

This 326-page study contains 117 exhibits and includes:

-- A 5-year forecast of worldwide user expenditures for VPN
 hardware, software, and services (unmanaged, managed CPE, and
 managed in the cloud)

-- Critical security plans and preferences including: tunneling
 (PPTP, L2TP, L2F, and IPSec); encryption (DES, Triple DES, RC4,
 Blowfish, etc.); authentication; PKI and digital certificates;
 and internal use of VPNs

-- Extensive examination of user plans for individual remote access
 VPNs, site-to-site VPNs, and extranet VPNs

-- The purchase process for VPN products and services

-- The role of outsourcing VPNs

-- VPN product and service requirements and expenditures


As usual with a new technology, users are ascending a learning curve, and vendors need to know their changing attitudes and plans, as well as how they make their choices about VPN technologies. User Plans for VPN Products and Services 1999 helps VPN vendors tap into this exploding market by offering just such information. The study also looks at market size, and includes both US and worldwide forecasts.

For information on purchasing this study, please contact Larry Howard at Infonetics Research, at 408/298-7999 x225 or

Infonetics Research, Inc. provides network vendors with critical market and technology advice aimed at developing winning products-and the most effective messages to sell those products. Infonetics Research bases its advice on comprehensive market studies and one-on-one consulting. The IRI research team interviews all players in the network industry: product owners, network vendors, and the trade press. This in-depth research results in a thorough knowledge of both the supply and the demand sides of the network market. Market studies from Infonetics Research make a critical difference to network vendors.
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Publication:Business Wire
Geographic Code:1USA
Date:Jun 25, 1999
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