Sales of IP VPN equipment reached $267 mln in 2003

Instat-MDR estimates total worldwide sales revenues for network-based IP VPN equipment in 2003 to be $267 mln. Edge routers accounted for 51% of total sales of network-based IP VPN equipment in 2003, and multiservice switches and IP services switches had quite similar market shares. Network-based IP VPN services move VPN intelligence to the edge of the network, as opposed to initiating tunneling at the CPE, as with CPE-based VPN services. Most leading service providers offer at least one network-based IP VPN service for their business customers.

To meet the growing demand from businesses to outsource security, edge router, IP services switch and other vendors are layering on more security services into their products, in addition to supporting IP VPN services. Some equipment vendors are also offering gateway services to connect remote users with IPSec and SSL clients to corporate sites on layer 3 or layer 2 VPN services.