Yankee Group Predicts Brazilian IP VPN Growth

March 31, 2003 -- (FIND VPN) -- According to a report released this week by research organization the Yankee Group (YankeeGroup.com) IP VPN technology is gaining in popularity among Brazilian end users.

The report, titled "Brazilian IP VPN Market Will More Than Double," indicates that media, technology, manufacturing and consumer goods verticals are segments of the market opting aggressively for IP VPN solutions, as applications that contribute to cost-cutting initiatives without causing concern about quality and security grow more popular during difficult times.

Comparing the different versions of IP VPN, says the Yankee Group, the report analyzes service provider strategies and end-user adoption. It also includes a 5-year forecast of the Brazilian IP VPN market, and the results of a survey of 500 medium and large corporations regarding IP VPN adoption.

"Demand for IP VPN solutions is maturing," says Fabio Zaffalon, Yankee Group Convergent Communications Latin America analyst. "2003 is a critical year, because competition in this segment will increase dramatically. More important, the quality and price of IP VPN services will be tested. The vast majority of new service deployments will use network-based IP VPNs, followed by CPE-based IP VPNs. Frame relay-based solutions will grow marginally. As with every new technology, large corporations will be a key segment. However, operators also will target SMBs with combined IP VPN and ADSL solutions."