Free At Last: The Move To Dedicated IP-VPN Networks
by Rick Malone
Published May 2006; Posted December 2006


Itís a buyerís market for dedicated IP-VPNs, as more enterprises come off long-term legacy network contracts.

For many enterprise network managers, coming off a long-term contract with an incumbent carrier is like being released from prison. The chains and shackles of high-priced legacy services are removed, vendors begin treating you like an important citizen again, and new opportunities abound.

What network managers find after their release is an increasingly proven and popular alternative for migrating their legacy data networks: dedicated IP-VPNs. These services, which rely on fixed broadband access connections like T1 and DSL, and MPLS backbones, have become the architecture of choice for most large enterprises that decide to trade in their frame relay ports and private lines. More than 8,000 U.S.-based enterprises use dedicated IP-VPN services now - and we expect installations to more than double by 2010.

Although quantifying the business drivers for switching to a dedicated IP-VPN requires more than a perfunctory analysis, most customers we have surveyed tell us that they view this migration as an investment in future-proofing their networks. IP-VPNs are perceived as more economical, more flexible and more scaleable than traditional frame relay, ATM and private line networks.



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About the author:

Rick Malone is a principal of Vertical Systems Group specializing in telecom market dynamics and sizing for more than 20 years. Market statistics cited in this article are excerpted from the firmís on-line ENS research programs. Case studies are adapted from the firmís extensive database of enterprise networks.


This article is reproduced by special arrangement with our partner, Business Communications Review.


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