Sigh. I knew I shouldn't have put a dollar figure in my response.
Michael you have to take those reports with a grain of salt, dollar
amounts tend to be meaningless. At the risk of getting nailed here's
how I did my math. Red Creek last year shipped about 1% of the hw
IPsec VPN boxes worldwide. They were bought for about $10M (if I
remember correctly). Thus implicitly valuing all the firms, divisions
of firms, etc., at about $1B. Generally speaking in a growth industry
you pay about 5x revenues. So this means the industry last year
probably had about $200M in revenues. I may be off a bit, maybe its
$300M, but that's about how much money is being paid by real customers
per year. It's not a huge market, at least not based on my back-of-
the-envelope calculations. If I'm wrong then I'm sure one of your
marketing guys can correct me with more accurate numbers.
- Alex
At 07:56 PM 3/18/2002 -0800, Michael Choung Shieh wrote:
FYI. Dedicated VPN HW Hits $1.3 Billion as shown at
http://www.infonetics.com/resources/quarterly_worldwide_market_share_forecas
ts_4q01.htm It has a sizeable installation out there, though it does have
some large deployment issues.
Michael Shieh
-----Original Message-----
From: Alex Alten [mailto:Alten(_at_)attbi(_dot_)com]
Sent: Monday, March 18, 2002 5:26 PM
To: Steven M. Bellovin; William Allen Simpson
Cc: ietf(_at_)ietf(_dot_)org; ipsec(_at_)lists(_dot_)tislabs(_dot_)com
Subject: Re: 10 years and no ubiquitous security
[... skip...]
It seems to have decided, IPsec has settled into a fairly modest
VPN market niche ($200M/yr revenues or so?). It is not turned on by
(or not available on) at least 99% of the Internet hosts.
[... skip....]
- Alex
--
Alex Alten
Alten(_at_)ATTBI(_dot_)com
--
Alex Alten
Alten(_at_)ATTBI(_dot_)com