eFiles: August 6, 2001

By eweek  |  Posted 2001-08-06

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.

Firms want it fast, thick, streaming

Corporations spiraling demand for streaming media is a big part of increasing revenues for IP (streaming) media servers and storage, which Multimedia Research Group Inc. recently pegged at $3.2 billion worldwide. Multimedia, a North Adams, Mass., market research services company, predicts that figure will top $5 billion in 2004.

Those figures come from Multimedias recently released report, "IP Video & Streaming Media 2001: Worldwide Server, Services, Content & ROI Analysis with Market Forecast—2001-2004." The report also predicts that cable broadband Internet is likely to stay ahead of DSL, or digital subscriber line, in the United States.

Rocket Fuel