IP VPN via Satellite Market to Grow as Bundled Service to Broadband Offering, According to Northern Sky Research; Market to Generate Increasing Revenue Over Next Five Years.Business Editors/High-Tech Writers ORLANDO, Fla.--(BUSINESS WIRE)--June 8, 2004 Northern Sky Research today released its newest market survey and forecast report: "IP VPN (Virtual Private Network) A private network that is configured within a public network (a carrier's network or the Internet) in order to take advantage of the economies of scale and management facilities of large networks. via Satellite: The Next Generation of Enterprise Satellite Communications." The report focuses on the newly emerging implementations of Virtual Private Networks (VPN) that are undertaken using satellite platforms. As equipment manufacturers, software developers and service providers begin to address global demand for VPN services for enterprises, the viability of such services when implemented over satellites is important to ascertain. The report provides an estimate of revenue projections and growth of the installed base of user sites in all regions over a five-year period. The report concludes that the IP VPN via satellite market is contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent the uptake of basic broadband access See broadband and wireless broadband. services via satellite over time. As enterprise sites in remote and underserved areas use satellites as the platform to communicate and link to the corporate intranet, IP VPN service can easily be bundled for highly secure and highly robust communications. Total equipment and service revenues from 2004 to 2008 are expected to exceed $785 million, making this new offering an attractive complementary feature to basic high-speed Internet See broadband. access services. "Given the growing use of satellites to connect underserved areas, as well as the growing use of the Internet as the infrastructure of choice for enabling corporate WANs, growth for IP VPN via satellite services and equipment should increase at a steady rate," states Jose del Rosario, senior analyst of Northern Sky Research and author of the report. Initial demand will be generated largely from the procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. of large enterprises and SMEs as they extend the reach of the corporate intranet given the limitations of terrestrial-based VPNs. However, SoHo's should increasingly account for a larger part of the market, specifically when equipment and service costs begin to decline. Indeed, the key driver of the market lies in declining equipment and service costs. Affordability of value-added VPN services particularly in the SME (1) (Small and Medium-sized Enterprise) See SMB. (2) (Subject Matter Expert) An individual who is well-versed in the policies and procedures of a particular department or division. and SoHo sectors, which have lower price elasticity of demand Price Elasticity of Demand A measure of the responsiveness of the quantity demanded of a good to a change in its price. It is calculated as: , will be a key benchmark in the buying decisions of many enterprises. "Since the vast majority of the world's enterprises belong to the SME sector and the increasing trend of telecommuting telecommuting, an arrangement by which people work at home using a computer and telephone, transmitting work material to a business office by means of a modem and telephone lines; it is also known as telework. is giving rise to a dynamic SoHo market, the currently nascent nascent /nas·cent/ (nas´ent) (na´sent) 1. being born; just coming into existence. 2. just liberated from a chemical combination, and hence more reactive because uncombined. IP VPN via satellite market is expected to generate higher revenue streams annually until 2008. Moreover, improving penetration rates within satellite corporate users should offset declining price effects in terms of revenue impact," states del Rosario. From less than 5% penetration within the installed base of two-way IP VSATs worldwide, penetration rates of VPN are expected to increase to over 20% in certain regions of the globe. The North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. region driven by the Untied States is expected to account for the highest number of IP VPN via satellite enabled sites within the report's forecast period. The U.S. has, and is expected to account for the highest number of broadband satellite-based corporate users that can easily be tapped for higher-value IP VPN services. "IP VPN via Satellite" is a multi-client market research report now available from Northern Sky Research. For additional information on this report, including a full table of contents, list of figures and executive summary, please visit www.northernskyresearch.com or call Northern Sky Research at 407-352-5295. Northern Sky Research is an international market research and consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a specializing in satellite technology and applications. Northern Sky Research primary areas of expertise include satellite technology, IP applications, and broadcast services. With extensive expertise in all regions and a number of broadband sectors, Northern Sky Research is a leading provider of in-depth market insight and analyses. |
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