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IP Services Feature Article

January 04, 2006

IP VPN Equipment Revenue to Reach $658 Mil in 2009

By Johanne Torres, Contributing Editor

Network-based Virtual Private Network (IP VPN) equipment revenue is poised to grow from $347 million in 2004 to a whopping $658 million in 2009 worldwide. These findings were recently published in a study titled The Equipment Options for Implementing Network-Based IP VPN Services, conducted by research firm In-Stat.
Analysts also found that network-based IP VPN services such as MPLS IP VPN, Virtual Router, and Network-Based IPSec services, move VPN intelligence to the edge of the network, as opposed to initiating tunneling at the CPE, as with CPE-based VPN services. "The number of end-users that are converging voice and video onto their IP VPN services continues to grow, and this convergence creates a greater demand for the use of different classes of service," said Henry Goldberg, one of the firm's analysts.

The study also revealed that service providers who include DSL access lines as part of their offering sell the service to small/midsized businesses and branch offices as a lower-cost alternative to traditional leased lines.

Surveyed parties revealed that end-users who use DSL access lines to connect to network-based IP VPN services require broadband subscriber management services, and some vendors offer such services on the same platform as their VPN services.

According to the firm's news release, analysts concluded that "support for value-added security services, such as firewalls and intrusion prevention, enable service providers to generate substantial additional revenues beyond those for IP VPN connectivity services."
The VoIP Minute Watch reported on multiple IP VPN deployment deals during 2005. The deployments involved giant telecoms and communications companies such as AT&T, SBC Companies, Verizon and Avaya. Medical organizations, banking and other financial firms, as well as multi-campus educational institutions have all benefited from partnering with these telecom providers to integrate their voice and data services as they converged to an all-IP network.
Judging by how popular IP VPN deployments were last year, it feels safe to predict that they will also mushroom during this New Year 2006. It is a great tool to integrate telecommunications within enterprises that have several offices within a few blocks, a few states over, or even across the nation.
For more info on the subject, be sure not to miss endless conference sessions at our Internet Telephony Conference & EXPO East taking place during the week of January 24th -27th, 2006 at the Fort Lauderdale Broward County Convention Center in Florida.   

Johanne Torres is contributing editor for TMCnet and Internet Telephony magazine. To see more articles by Johanne Torres, please visit Johanne Torres' columnist page

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