VPN, firewall sales expected to boom

Friday, 22 November 2002, 1:07 PM EST

Worldwide revenue from sales of VPN and firewall hardware and software will grow by 31% from $668 million in the 3rd quarter of 2002 to $874 million in the 3rd quarter of 2003, according to research by Infonetics Research.

Worldwide annual revenue in this market will reach $4.9 billion in 2005, Infonetics said.

A key market driver is the ready availability of low-cost Internet bandwidth which enables users to move to a model of distributed Internet connectivity rather than centralized connectivity. This drives up demand for VPN and firewall sales, Infonetics said.

In the U.S., government spending on security and the need for compliance with privacy provisions of the Health Insurance Portability and Accountability Act (HIPAA) is also helping VPN and firewall sales, according to Infonetics.

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