IP Virtual Private Networks increasingly outsourced.(Brief Article)

EUROPEMEDIA-(C)2003 Van Dusseldorp & Partners - http://www.vandusseldorp.com/

The number of 'do-it-yourself' internet protocol virtual private networks (IP VPN) in Western Europe is set to decline relative to managed or outsourced IP VPNs, according to the latest study from the IDC.

The IDC predicts that the number of DIY IP VPN connections in Western Europe - 0.5m at the end of 2001 - will rise by 24 per cent year on year to nearly 1.5m at the end of 2006.

Meanwhile, the market will see a 51 per cent year on year increase in the number of managed IP VPN connections from 0.4m at the end of 2001 to 3.2m in 2006. The faster growth of managed IP VPN services will lead them to overtake the number of DIY services in 2003.

The predicted growth in the uptake of managed IP VPN services is based on several factors, including the extent to which managed service offerings are becoming more prevalent, more affordable, and more attractive in terms of how they are offered and what they are able to support. DIY IP VPNs are still expected to remain popular among businesses which have the technical and human resources required to run their own network.

The IP VPN service provider landscape is experiencing a consolidation process in terms of the types of services that are offered. Increasingly, providers are offering customers a full range of services, including managed premise-based services and managed network-based services.

Chris Drake, a senior analyst on IDC's European IP Services program, suggests that, "as the market for IP VPN service provision becomes morecompetitive, service provider offerings will make greater use of a wide range of connectivity, management, and pricing options, as well as become more attractive in terms of the performance, quality of service, and value added services offered."((Distributed via M2 Communications Ltd - http://www.m2.com))