IP VPN services market to soar

While a number of organisations in the Middle East are beginning to implement IP based virtual private networks and even more are investigating the technology, the market remains sluggish and the prerogative of the big spending enterprise.

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By  Matthew Southwell Published  January 3, 2002

While a number of organisations in the Middle East are beginning to implement IP based virtual private networks (VPN) and even more are investigating the technology, the market remains sluggish and the prerogative of the big spending enterprise.

However, in the more mature US market, VPNs are big business and the services market surrounding private networks has grown considerably in the past year. As a result, analysts at IDC are predicting that the total IP VPN services market for North America will grow from over $5.4 billion in 2001 to nearly $14.7 billion in 2006, which represents a compound annual growth rate of 22%.

The stimulus for this growth is three-fold as, like the Middle East, more companies are implementing and expanding IP VPN services. In addition, with in the US, carrier IP VPN services continue to expand and mature and vendors have made improvements in IP VPN products and services.

“Survey results show that IP VPNs are a much more common form of wide area network for many companies than in the past,” says Steven Harris, research manager, IP VPN services.

“The general trend seen this year is more intensive and extensive use of IP VPNs for U.S. companies. More companies are using IP VPNs and in more sites and for more remote users than in 2000,” he adds.

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