Technology research firm In-Stat/MDR is enthusiastic about network-based IP solutions for Virtual Private Networks.
In a just-released study, the firm pegs total worldwide sales revenues for network based IP VPN equipment as $267 million in 2003.Edge routers constituted the biggest bite of that total, around $135 million.
The report projects the $267 million figure should grow to nearly $800 million by 2008.
So what's the secret sauce?
If you are a telephony services provider, you might think that IP VPN equipment is not only the greatest thing since sliced bread, but even greater.The appeal is multifold: economies of scale derive from the ability of serving multiple customers from equipment at an edge POP;provisioning, management and maintenance calls are reduced.
At least as important, carriers can earn incremental revenues offering various classes of services. And the router companies are offering enhanced security services bundled into their hardware.
Full disclosure: I have freelanced for In-Stat, but not on this study.