System and methods for identifying and managing applications over compressed or encrypted traffic in a network are described. The first and second embodiments, which provides a method for managing applications over compressed or encrypted traffic respectively, comprise identifying applications on the traffic, saving the application classification per connection, and propagating the application classification to the network. A method for providing application identification over compressed or encrypted traffic is also disclosed, which includes an application recognition module configured to, among other functions, determine an application classifier for compressed or encrypted traffic without applying an application classification process, and utilize the application classification for previous packets originating from the connection for the current packets from the same connection.