Internet-based VPNs a growth market, tech survey firm says

SCOTTSDALE, Ariz. – Tech-fearless credit unions aren’t alone in adopting virtual private networks (VPN) to ferry data across their far-flung operations. According to a new report from In-Stat/MDR (www.instat.com), 90% of U.S. organizations with 1,000 employees or more are either currently deploying some kind of IP(Internet Protocol)-based VPN or are planning to do so within the next two years. That makes that high-tech niche a somewhat rare growth industry, with 33% growth expected through 2006, beginning with 15% to 20% increases this year in a particularly tough market. Helping to fuel the growth are migration of frame relay/ATM service users to IP VPN services, In-Stat/MDR reports, as well as the gradual gain in market share of outsourced vs. in-house approaches. The latter, prompted by easing security concerns, will be a key to the continued growth, since currently 91% of VPN users were relying primarily on in-house VPNs, citing security as the major reason, the Arizona-based tech survey and consulting firm says.