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DAILY NEWS AND INFORMATION
FOR THE GLOBAL GRID COMMUNITY /
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Breaking News -
Networking:
IP VPN Services Market Poised To
Grow
With most end-users likely to consider them when they migrate from Frame
Relay
(FR)/ATM, private line, or Internet services, IP Virtual Private Network (VPN)
services will grow at a Compound Annual Growth Rate of 20 percent from 2004 to
2008, according to In-Stat/MDR. The high-tech market research firm reports
that, with all major service providers already offering a range of CPE-based
site-to-site, remote access, and network-based VPN services, this market
reached approximately $2.45 billion in 2003.
"IP VPN services are the next evolutionary step for many end-users that are
currently using FR or ATM VPN services, private line services, or the public
Internet for their networking needs," says Henry Goldberg, a senior analyst
with In-Stat/MDR. "These services offer more security than the Internet,
cost-effective any-to-any connectivity, and the capability to carry multiple
types of traffic for customers who want an integrated network solution."
Though still much smaller than the FR services market, the IP VPN services
market is expected to grow at a faster rate, as more organizations will choose
this approach over the older networking options.
In-Stat/MDR has observed the following key, new trends in this market:
- A number of leading IP VPN service providers are making their
network-based
IP VPN service their flagship offering.
- Companies have strong motivation to converge their voice, data and
video
traffic on a network-based IP VPN service. Service providers are offering
various value-added services to support this.
- Some service providers are offering new VPN services such as SSL remote
access, Wi-Fi hotspot VPN access, and multicasting over VPN services.
- Network-based revenues will grow more rapidly than CPE-based revenues,
because network-based VPN services will take a growing share of the overall
market.
- The top 10 service providers in the U.S. market account for about 40
percent of the revenues.
- AT&T is estimated to have the largest market share in this market with
MCI
and SAVVIS in second place.
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