European IP VPN market growing fast – for now

The European market for IP-based VPNs is growing rapidly but the current double-digit growth phase will flatten out to five per cent a year by 2007, according to IDC.

The IT research firm also says that managed VPN services are growing faster than in-house do-it-yourself systems.
IDC's report, entitled `Western Europe IP VPN Forecast, 2002-2007,'
estimates that managed IP VPN services in Western Europe grew by
107 per cent during 2003 and that, of the five countries with the
largest growth, Italy grew the most (by 131 per cent).
The reason for the flattening out of growth, says the report, will be
due to several factors, including saturation in major companies and a
shift away from conventional IP VPNs to voice over IP and hosted
On the managed IP VPN front, IDC says that MPLS technology now
accounts for more than half of current connections and that, as MPLS
advances, so IPSec will reduce in popularity.

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