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Managed security shoots up by 21%

Recent report from Infonetics suggests that the market is likely to double by 2011 reaching $13.8 billion

The worldwide managed security market grew by 21% in 2007, and predictions by research analysts Infonetics are that it will double by 2011 to reach $13.8 billion.

"The emergence of non-traditional providers like Google and enterprise acceptance of software-as-a-service has boosted the opportunity for content security services, particularly in-the-cloud services, and these services are really driving the strong growth we forecast through 2011," explained Jeff Wilson, principal analyst for network security at Infonetics.

According to the report, half of the revenues achieved were from managed firewall while the segment displaying the fastest growth was content security. Infonetics further expects that the latter's revenue will nearly triple by 2011.

Small businesses currently only comprise 22% of the spending on security services, while large enterprises dominate the market with 44%. However, the gap between the two will diminish in the near future with small businesses becoming more aware of security.

The managed encrypted VPN services market inched up 1% between 2006 and 2007, and is expected to slowly decline over the next four years. The SSL VPN services segment is set to grow at a 25% compound annual growth rate (CAGR) from 2007 to 2011.

"In the managed encrypted VPN space, the drivers are still there (productivity improvements and costs savings combined with the complexity of deploying them), but MPLS is really starting to steal business away from encrypted site-to-site VPN services," concluded Wilson.

The report tracked managed encrypted VPN services revenue in four breakouts (IPSec vs. SSL, remote access vs. site-to-site, CPE- vs. network-based, and small vs. medium vs. large organisations), and managed security services revenue in three breakouts (managed firewalls vs. content security vs. other security services, CPE- vs. network-based, and small vs. medium vs. large organisations).

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