StatFlash - U.S. Dedicated IP VPN Services Sites Top 1 Million by 2011

News > Press Releases & Stat Flashes

Recent
Press Releases &
Stat Flashes

Vertical Systems Group:
U.S. Dedicated IP/MPLS VPN Services Top One Million Customer Sites, Surpassing Frame Relay/ATM

BOSTON (June 26, 2008) - The number of Dedicated IP/MPLS VPN customer sites in the U.S. is projected to surpass base installations of Frame Relay/ATM network services within the next eighteen months, and top the one million threshold by 2011, according to Vertical Systems Group's latest research. Enterprise network migration from legacy services to managed VPNs has accelerated as a result of surging IP traffic and subsequent requirements for more bandwidth.

Dedicated access VPNs include enterprise customer sites that connect to Network-Based IP/MPLS or Site-to-Site IP VPN services at access speeds ranging up to more than 1 Gbps. The new market analysis quantifies each type of VPN service based on site counts and revenue for seven access speed segments.

"Enterprise site counts are a clear indicator of customer demand trends, and one million is a benchmark level for the U.S. Dedicated VPN market. The mix of access speeds that customers are purchasing for these sites is also important for tracking Layer 2 and Layer 3 service bandwidth requirements and projecting VPN provider revenues," said Rosemary Cochran, principal at Vertical Systems Group. "T1 is today's connectivity sweet spot for both Frame Relay and Dedicated IP VPN services. Nearly 95% of VPN customer sites connect using T1/FT1, DSL or lower speed access rates, however the fastest growing speeds are higher bandwidth, higher-priced T3/FT3, VDSL, OC-3+, and high speed Business Ethernet or Business Cable connections."

Detailed statistics and analysis for the Dedicated VPN Services market by segment and speed are available now through Vertical Systems Group's web-based ENS Research Programs. Research content for VPN markets includes annual projections through 2012 for service ports and revenue by speed segment (56/64 Kbps, Low Speed DSL, 1.5-2 Mbps, 2-28 Mbps, 29-44 Mbps, 44-100 Mbps and >100 Mbps) and VPN service segment (Network-Based IP/MPLS, Network-Based FR/IP, Site-to-Site). Other features include IP traffic drivers, service pricing by segment and speed, VPN segment characteristics, VPN comparisons, market shares for the U.S. and EMEA, and directories of Service Provider offerings. Contact us now for more information on a research program that fits your organization's needs and budget.

About Emerging Networks Service (ENS) Research Programs
ENS is Vertical Systems Group's comprehensive web-based resource for defensible statistics and insightful analysis on broadband networking markets, including Business Ethernet, IP/MPLS VPNs, Frame Relay, ATM, Private Lines, Access, Fiber, Broadband and more. Markets + Migration is Vertical's premier service with in-depth coverage of all syndicated research topics plus additional premium content. Standard and custom ENS Research Programs are available. Contact us now to explore the value of our services for your organization.

About Vertical Systems Group
Vertical Systems Group (http://www.verticalsystems.com) is recognized worldwide as a leading market research and strategic consulting firm specializing in defensible quantification of the networking industry. To speak with an analyst at Vertical Systems Group, call Elizabeth Swanson at +1.781.352.0700 or eswanson@verticalsystems.com.