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Network-Based IP VPN Equipment Enabling Key Services for Service Providers Reports In-Stat

Posted on: Thursday, 5 January 2006, 15:00 CST

Network-based IP VPN (Virtual Private Network) services are one of the important growth areas in business networking services, and will spur network-based IP VPN equipment worldwide sales revenues to grow strongly from $347 million in 2004 to $658 million in 2009, reports In-Stat (http://www.in-stat.com), a high-tech market research firm.

Network-based IP VPN services (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, In-Stat analyst.

A recent report by In-Stat found the following:

-- Service providers are selling DSL access lines to small/midsized businesses and branch offices as a lower-cost alternative to traditional leased lines.

-- End users that are using 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.

-- 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 report, "The Equipment Options for Implementing Network-Based IP VPN Services" (#IN0501948WN), provides a unique examination of the three categories of equipment that enable service providers to offer network-based IP VPN services: edge routers, multiservice switches, and other equipment. The key new trends shaping this market are identified. Detailed profiles are given of leading vendors from each equipment category. The report includes market share estimates for each category of network-based IP VPN equipment sales revenues in 2004. A five-year forecast of network-based VPN equipment sales revenues is also provided.

For more information on this report, please visit: http://www.instat.com/catalog/bcatalogue.asp?id=4 or contact Tina Sheltra at 480-609-4531 or tina.sheltra@reedbusiness.com. The report price is $2,995.

About In-Stat

In-Stat (www.in-stat.com) is the leading provider of actionable research, market analysis and forecasts of advanced communications services, infrastructure, end-user devices and semiconductors. Our insights are derived from both a deep technology understanding and comprehensive research, which examines each segment of the value chain for each market. Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's tenured, experienced staff and in-depth research to support critical business, product and technology decisions.

In-Stat is a strategic segment of the $8 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the United States.

Source: Business Wire

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