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Integrated Content Security Services Offer Big Growth Opportunity for Service Providers

Integrated Content Security Services Offer Big Growth Opportunity for Service Providers

CAMPBELL, CA -- (MARKET WIRE) -- 01/25/06 -- A new study by Infonetics Research finds that integrated services and VPN services represent the biggest new revenue opportunities for service providers in the managed VPNs and security market.

According to the study (Service Provider Plans for VPNs and Security: North America, Europe, and Asia Pacific 2006), service providers in all regions expect significant revenue growth for intrusion prevention, network AV, and spam and content filtering services.

"Europe seems to be behind the curve in some places, with much lower expected revenue growth than North America and Asia Pacific in some key emerging services like spam, content filtering, and network AV," said Infonetics Research's Jeff Wilson, principal analyst and author of the study. "European and Asia Pacific providers currently get the bulk of their revenue from standalone services, while North American providers get the bulk of revenue from integrated services."

The study features scorecards with service provider ratings of four VPN and security manufacturers based on eight criteria: technology, product roadmap, security, management, value, pricing, financial stability, and service and support. Cisco received the highest marks for management and financial stability and the lowest for pricing, while Juniper and Check Point received the highest marks for security.

Study Highlights

--  Average revenue from managed VPN and security services will grow 32%,
    from $210 million in 2005 to $278 million in 2007
--  Keeping up with new security threats, finding integrated management
    systems, and finding security/VPN expertise are the leading technical
    challenges respondent service providers face
--  IPSec is still the top technology providers use for remote access VPN
    services, but in the next year, providers expect an average of 20% of
    remote access VPN revenue will come from SSL
    

Infonetics' study segments the market and examines the implementation plans of North American, European, and Asian service providers that sell managed VPNs and security services, including incumbents (RBOCs, IXCs, and MSOs), competitive providers, including ISPs and CLECs, and specialized providers such as those focused on VPNs or security. The providers interviewed generate nearly two-thirds of the world's managed VPN and security services revenue.

Download study excerpts at www.info.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research (www.infonetics.com) is the premier international market research and consulting firm specializing in data networking and telecom. Services include quarterly market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

Press Contact:
Jeff Wilson
Principal Analyst, VPNs and Security
Infonetics Research
408.583.3337
Email Contact

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