Empowering Networks

Communication, in its various forms, has always been a subject of universal
fascination for the human kind. With its evolution from lighting flashes to
denominate war victory, to the twenty first centurys blazing bandwidth Internet
facility, all has been made possible only because of the determination of human
beings at conceiving the impossible. The Internet in todays world is a prodigal
child of mans ability to achieve, and one of its major enterprise communication
manifestations is virtual private network (VPN) that acts as a crucial
enterprise communications link.

VPNs are present in various distinctions but the most adopted of them is IP
VPN. Experts are of the opinion that the cost, complexity and tedious nature of
legacy wide area networking (WAN) technology has restricted companies from broad
basing their networks to include remote sites, people on the go, and to
integrate suppliers, distributors, and dealers. Legacy WAN prohibited pervasive
communication access mainly because; to extend its reach, one needs to use
costly technologies like asynchronous transfer mode (ATM), frame relay, and
leased lines for private networks. These accumulated complication further became
the point of birth of IP VPN.

Evolution of IP VPN

Companies like Sify believe that if we compare WAN options across private
lines, ATMs, and frame relays with IP VPNs, we see that while private networks
are secure, they are also far more complex, cumbersome to set up and manage, and
costly to maintain.A private line links only two sites of a single customer in a
point-to-point fashion. There is no possible mode to connect a third site or
have all sites interconnected without requiring each site to maintain leased
line connections to each of the other sites.

In contrast, IP-based networks are more efficient as they are based on the
mesh network topology, where traffic flows in multiple patterns. Moreover,
IP-based networks do not require permanent virtual circuits (PVCs), as in the
case of legacy networks like frame relay or ATMs. Clearly, IP VPNs give freedom
and flexibility to scale a business quickly, easily, and cost-effectively, with
rapid growth and ubiquitous nature of the Internet as its key. Sudhir Narang,
MD, BT India, says, IP VPN is an integral part of the adoption of the IP
technology that we are witnessing the world over in converging voice, video, and
data networks. IP VPN has attained a near de facto status for enterprises to
connect with their intra and inter ecosystems.

According to Frost & Sullivan, the VPN market is expected to reach Rs 3, 343
crore in 2013. However, experts feel this figure will be surpassed soon, on
account of opportunities like dealer connectivity, rural network initiatives,
etc. Deepinder Bedi, director, International Marketing, Tulip IT Services, says,
IP VPNs primarily are based on the foundations of availability, security,
scalability, and flexibility. The ability to securely connect multiple locations
at varied bandwidths, and support a large number of locations across various
industry verticals.

IP VPN is an integral part of the adoption of the IP technology which we are witnessing the world over in converging voice, video and data networks. IP VPN has attained a near de facto status for enterprises to connect with their intra and inter ecosystems Sudhir Narang, MD, BT India	IP VPN is primarily based on the foundations of availability, security, scalability and flexibility. It has the ability to securely connect multiple locations at varied bandwidths, and support a large number of locations Deepinder Bedi, director, International Marketing, Tulip IT Services

Market Dynamics

In the last couple of years, the IP VPN market is headed the multi-protocol
Label Switching (MPLS) route. MPLS based IP VPNs by retaining the pervasive
reach of IP networks, at the same time, offer more network stability in terms of
scalability and security. Reflecting on this, PJ Nath, executive president, Sify
Technologies, says, MPLS is emerging as the fastest growing WAN technology
which is being widely used by leading carriers globally. MPLS-based IP VPNs
provide the performance and privacy of legacy WAN technologies like frame relay,
combined with the flexibility and cost advantages of packet-based IP networks,
like the Internet.

Vendors believe that the key market drivers for IP VPNs are services like
application hosting, e-commerce and other collaborative applications that are
propelling the growth of IP VPN services. Convergence of voice, video, and data
applications has also fueled the need for higher bandwidth within enterprise
networks. IP VPNs will play a larger part of the network landscape with the
growing adoption of MPLS-based IP VPN networks by multiple verticals like
banking, BPO, healthcare, retail, and FMCG, says PJ Nath, executive president,
Sify Technologies.

MPLS technology is an integration of layer 2 (virtual leased line solutions
with flexible bandwidth configurations) and layer 3 (fully managed hub-and-spoke
and full-mesh VPN for secure and flexible any-to-any connectivity). Moreover,
MPLS offers enterprises a diverse range of services including security, quality
of service (QoS) and cross-location connectivity.

With the advent of MPLS-based IP VPNs, the data service market in India is
experiencing a surge in demand. Since 2002, the entry of ISPs and private fixed
line operators has addressed the bandwidth requirements to a large extent. Since
a VPN varies significantly across organizations, it is defined by the
organizations need to connect across locations and run applications that
require high bandwidth capacity used in business processes. According to
industry experts, the current VPN user segment is primarily composed of large
enterprises.

Reflecting on this, Deepinder Bedi says, As per RBI guidelines for online
banking and e-commerce based services, banks and financial institutions must
avoid any direct connection between the Internet and their core system. The best
option available to banks is to place core network on IP VPN for enhanced
security features.

In tune with market demands, vendors are also offering focused IP VPN-based
services. For instance, Tulip IT Services offers IP-based infrastructural
solutions to its customers. The company says that it has a market share of 28%
in the MPLS VPN market.

Meanwhile, Sify Technologies offers a range of VPN connectivity services on
the MPLS backbone. It has put in place state-of-the-art infrastructure, and has
partnered with multiple global service providers in different geographies of the
world to establish a well-managed global MPLS network that provides end-to-end
managed network connectivity across the globe.

Competing with Indian players, companies like BT are also making their
presence felt in the enterprise connectivity space. The company has put in place
its 21CNits next generation networkan advanced communications network for the
future.

Emerging Trends

With every vertical having unique requirements, their connectivity
requirements also differ. In tune with this, vendors are offering industry
specific VPN products such as contact center solutions designed to cater to the
needs of the BPO industry.

MPLS-based IP VPN provides the performance and privacy of legacy WAN technologies, like frame relay, combined with the flexibility and cost advantages of packet-based IP networks, like the Internet PJ Nath, executive president, Sify Technologies

Experts believe that emerging services like application hosting, e-commerce
and other collaborative applications would be the key market drivers, propelling
the growth of IP VPN services. Convergence of voice, video, and data
applications has also fueled the need for higher bandwidth within enterprise
networks.

As Deepinder Bedi of Tulip IT Services sums it up: IP VPNs empower an
enterprises ability to connect to multiple locations. It provides greater
availability by means of meshed hybrid systems, and multiple last mile options
including fiber and wireless.

VPNs have come a long way but the way forward is MPLS. Experts are of the
view, that irrespective of the enabling secure access for employees in a branch
office, or for remote sites, or for traveling salespersons, companies using IP
VPNs benefit greatly by expanding their ability to remain productive, no matter
where they are located. The inherent benefits of IP VPNs have made them the
vital enterprise communication access link.

Shrikanth G

shrikanthg@cybermedia.co.in