IDC Says IP VPN Services Market to be Worth Nearly 1.9 Billion in Australia by 2005

NORTH SYDNEY – JUNE 3, 2002 – After a tumultuous year in the communications industry enterprises continue to grapple with their networking needs to support employees, partners, suppliers, and customers.


What used to require large investments in private wide area networking infrastructure is now being addressed by IP-based virtual private networks utilising the latest standards for security and quality of service.

IDC expects the IP VPN services market to be worth nearly 1.9 billion in Australia alone in 2005. This is a 48% CAGR increase from last years $500 million. IDC attributes this revenue growth to the increase of both remote access users and site-to-site users, said Joel Martin, IDCs Research Director, Infrastructure & Communications.

Key advances in VPN have been the inclusion of integrated software in client devices such as notebook computers by Microsoft in its Windows 2000 and XP operating systems. IDC expects the market for notebook computers to increase from 2.5 million today to around 4 million in 2005 and this will be a key driver for corporate IT departments to look to carriers and service providers for service and support.

Site-to-site VPN services will be the real revenue gainer for carriers and service providers locally and globally. As enterprises look to connect more sites together via Internet-based VPN services, these providers will be in a position to manage and provision quickly expanding corporate intranets and extranets.

IDC expects site-to-site VPNs to compliment large corporate WANs – adding enterprise functionality to branch offices and home office users. In the SME space IP VPNS will allow Australian companies access to similar resources available to larger organisations.

The Internet offers scale and scope to enterprise users. As more users become mobile and demand robust remote access, services connectivity through the public domain will have to become the primary avenue. Combine this will the global scope of the Internet and enterprise and users can be assured of both mission supporting and mission critical applications.

Finally, carriers can combine cost efficiencies of public network with the required quality of service guarantees required by business. These services can be offered locally, regionally, and globally and scaled on demand. A very attractive pay as your alternative to bottom-line focused business during 2002.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and eBusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts local and worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDCs customers comprise the world's leading IT suppliers, IT organisations, eBusiness companies and the financial community. Additional information can be found at