The Australian IP VPN market is predicted to reach $855 million by 2007, according to research from market analyst IDC.
The analyst's 'Australian IP VPN Services and Equipment Forecast and Analysis, 2002-2007' found that the total IP VPN market is expected to grow by at least $100 million every year over the next five years.
“IP VPN adoption is on most companies must buy list,” the analyst said in a statement. “The offerings with the best price, high flexibility and the possibility to integrate IP Telephony will be the most successful.”
“Remote access IP VPN revenue will grow at a faster pace, as companies are connecting more and more branch offices as well as remote users, enabling them to access IP enterprise applications.”
It also found the line between service providers and system integrators was blurring, with growing tensions around co-competition.
“System integrators like IBM, EDS, HP, DiData or CSC could compete in some instances with Equant, Telstra or Optus; and in other cases come together to bid for a deal jointly,” it stated.
IDC also found that Telstra was the leader of Australia's IP VPN market, with 34.7 percent total market share in Australia -- dominating the local market with its private IP offering which it has renamed IP WAN.
However, the market analyst also highlighted Equant as what it described as the best-positioned player in the Australian IP VPN market, looking beyond market share. “Equant has pioneered and set trends in this market for some time and has established itself a global IP VPN powerhouse,” it stated.