eFiles: August 6, 2001
VPN equipment has become so mainstream that it's proved immune to the effects of the increasingly sour economy.VPN equipment sells like hotcakes VPN equipment has become so mainstream that its proved immune to the effects of the increasingly sour economy. Thats because, according to International Data Corp., of Framingham, Mass., virtual private networks are low cost, and they provide businesses with flexible ad hoc connectivity. Indeed, IDC forecasts revenue growth from IP VPN sales will more than triple, from $2.3 billion last year to $7.5 billion in 2005.
The consultancy expects IP VPN-enabled equipment revenue growth to increase at a CAGR (compound annual growth rate) of 24 percent, from $1.7 billion last year to $5.1 billion in 2005. IP VPN-enabled equipment includes routers and firewalls, which alone will account for 70 percent of the segments growth.