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October 27, 2003
VPN, security product and service spending set to jump

UNITED STATES -- European end-user VPN, and security product and service expenditures will likely grow 69 percent, from $10.7 billion to $18.1 billion between 2003 and 2007, according to Infonetics Research's latest study, User Plans for VPN and Security Products and Services, Europe 2003.

Jeff Wilson, principal analyst of Infonetics Research, said: "Hackers are becoming more sophisticated, using application-layer attacks and the vulnerabilities created by the proliferation of Internet connectivity and VPNs to ravage enterprise networks like never before. We are in a major state of technical innovation for VPN and security products, as these products have to get better at identifying and stopping attacks."

Trends in the European VPN and security market:

  • Worldwide end-user VPN product and service expenditures will grow 42 percent between 2003 and 2007, from $25.3 billion to $35.8 billion;
  • Worldwide end-user security service expenditures will grow 88 percent between 2003 and 2007, from $5.2 billion to $9.8 billion;
  • The fear of being hacked by outsiders is the leading factor that pushes respondents to buy security products and services;
  • European respondents are not as enthusiastic about handling VPN deployment themselves; only 39 percent plan to, in contrast to the two-thirds to three-quarters of North American organisations, interviewed by Infonetics, that plan to deploy themselves;
  • Use of integrated security appliances in 2003 ranges from a low in the UK (35 percent of respondents) to a high in Germany (59 percent)

Contact:
Infonetics Research Inc.

Tel: +1-408-298-7999, Ext 226
jeff@infonetics.com
www.infonetics.com





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