Market Trend

US IP VPNs growing through 2014

Atlantic-ACM’s US Telecom Wired and Wireless Sizing and Sharing: 2009-2014 tracks trends in US business telecoms spending and expects IP VPN demand to grow at a CAGR (2007-2014) of 13.6%, representing the highest growing product among all business data products.

Respondents to the 2009 Business Connectivity Report Card indicated that they are increasingly migrating from legacy private line, ATM and Frame Relay products to Ethernet-based transport products, as well as IP MPLS-based VPN products.

Growth in demand will be driven by IP VPN’s cost-effectiveness as a data solution, according to Atlantic-ACM. Enterprise cloud computing build-outs will accelerate demand for secure and scalable connectivity between data centres and enterprises. At the same time, demand for cable modem, DSL and fibre-based broadband connectivity solutions among business customers should accelerate as use by small businesses as a T1 replacement continues to grow, driven by continued investment by cable/MSOs in the US small business telecoms space.





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