IDC Cautions Network Managers: Narrow Scope Of Internet VPN Investments

FRAMINGHAM, Mass., March 4, 1998 — As network managers are increasingly challenged to evaluate the Internet as part of their enterprise networking solution, they need to balance the lure of its benefits with the realities of its limits. "The Internet is not ready for prime time mission critical corporate applications, but it is clearly an important future solution," said Mark Winther, IDC/LINK's group vice president, Worldwide Telecommunications research. "The Internet's lack of security standards, its inconsistent response times and quirky reliability will limit its appeal as a reliable business medium for the next twenty-four months."

Using the Internet for the Corporate Virtual Private Network, a new report issued by International Data Corporation in conjunction with Network World, provides network managers with a comprehensive overview of the costs and management issues associated with the application and use of Internet virtual private networks (VPNs). The report offers practical advice and considerations for network or IS managers evaluating and implementing enterprise network solutions.

Key Insights

More than 50 percent of corporate data traffic will be outsourced to ISPs by 2001

More than half of the ISPs in the US will disappear by the end of the decade

Internet dial solutions can cut traditional 800-number costs by 50 percent

Mission supporting applications like email, collaboration, and document management should be the primary Internet-based focal point for the next 18 months

90 percent of Global 2000 companies will use frame relay VPNs in conjunction with Internet VPNs

Network managers should negotiate beyond downtime credits and secure penalty agreements related to network performance

Using the Internet for the Corporate Virtual Private Network, is the premier edition of the Network World Decision Support Series. The series is produced by IDC and Network World and consists of six bimonthly reports along with a valuable collection of additional IDC analysis, including technology bulletins, briefings, white papers and more. The Using the Internet for the Corporate Virtual Private Network report provides decision makers with a useful analysis of cost, security, and performance comparisons of frame relay, private leased lines and Internet VPN offerings as well as extensive profiles of ISPs providing VPN support.

A free executive summary and detailed ordering information can be found by visiting or calling 800-643-4668. For more information about IDC's research and advisory services for IS professionals contact David Brown at 508-935-4606.


International Data Corporation ( and its subsidiary, IDC/LINK, provide IT market research and consulting to more than 3,900 high-technology customers around the world. With a global network of 300 analysts in more than 40 countries, IDC is the industry's most comprehensive resource on worldwide IT markets, products, vendors, and geographies.


Network World ( is the industry's only newsweekly shaping the future of network computing in the enterprise. Through its publishing, education, software and online products and services, Network World empowers Network IS professionals with the knowledge to deliver the open applications and infrastructure required to meet their evolving business needs.


Network World and IDC are subsidiaries of IDG, the world's leading IT media, research and exposition company. IDG publishes more than 285 computer magazines and newspapers and 500 book titles and offers online users the largest network of technology specific sites around the world through (, which comprises more than 200 targeted Web sites in 52 countries. IDG is also a leading producer of 110 computer-related expositions worldwide, and provides IT market analysis through 49 offices in 41 countries worldwide. Company information is available at