IP VPN Revenues Will Double To $658 Million: Report

Network-based IP VPN revenues will nearly double from 2004 to 2009, to reach $658 million in sales, according to a new report by In-Stat.

The report said that the growth is due to VPN intelligence being moved to the edge of the network, rather than tunneling at the CPE with CPE-based VPN services. Converged voice and video is driving the growth as well, according to Henry Goldberg, In-Stat analyst, who noted in a statement, "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."

The report also found:

* Service providers have been DSL to small and mid-sized businesses and branch offices as a lower-cost alternative to leased lines.

* End-users that connect to network-based IP VPN services with DSL require broadband subscriber management services, with some vendors offering the services on the same platform as their VPN services.* The demand for value-added security services, such as firewalls and intrusion prevention, allows service providers to gain substantial additional revenues beyond IP VPN connectivity service.