VPN revenues to grow to Rs 1,141 cr by 2008: IDC

By siliconindia   |   Wednesday, 08 October 2003, 19:30 IST
Printer Print Email Email
NEW DELHI: Surged by an upswing in the usage of virtual private networks (VPNs) by SMEs and outsourcing of non-core IT services by large companies, the domestic VPN services revenue is expected to grow annually at 38 per cent to touch Rs 1,141.2 crore by 2008 from the current Rs 230 crore, according to IDC. The major accelerators are small and medium industries that have begun to adopt IP-based VPN services and this, coupled with falling prices of IP VPN as a method of connectivity, are acting as drivers in the segment, IDC said in a study. "The total cost of ownership is much smaller compared to a private leased line and from a scenario, wherein only applications like messaging and file transfer are being used by corporates with a VPN set-up, we are now seeing a case being made for enterprise-critical applications like core-banking," Dinesh Jindal, senior analyst, IDC India, said. The drop in revenue from basic telecom services would also force basic service providers to look at tapping revenues from services and one of the factors guiding the popularity of IP VPN is reach, Vijay Narayan, analyst, IDC, said. Upswing in the general economic conditions, security and quality improvements have boosted the prospects for VPNs, it said. VPN is an extension of an enterprise's private intranet across a public network like Internet, creating a secure private connection through a private tunnel.