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:[EMAIL PROTECTED]] >Sent: Monday, March 18, 2002 5:26 PM >To: Steven M. Bellovin; William Allen Simpson >Cc: [EMAIL PROTECTED]; [EMAIL PROTECTED] >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 >[EMAIL PROTECTED] > -- Alex Alten [EMAIL PROTECTED]