Secure network spending seen over $46 bln by 2006

Tuesday, 11 June 2002, 10:48 AM EST

Spending on "virtual private networks" will grow more than 100 percent over the next four years, topping $46 billion worldwide in 2006 as companies increasingly jump online and the ranks of telecommuting employees grow, according to a forecast.

Virtual private network (VPN) technology allows users of private networks, mainly corporate networks, to transmit secure electronic data and content over public online networks.

That allows companies to replace expensive private networks with less expensive online access to the Internet.

San Jose, California-based market research firm Infonetics Research Inc. forecast that worldwide spending by VPN users on VPN products and services will rise 117 percent to $46.2 billion in 2006 from $21.3 billion this year.

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