Virtual Private Networks : Looking for the Right Network

It was around two years back that the shift from leased lines to private
networks became visible. Today, it is one of the most prominent network trends
in the industry.

Until recently, IP VPN was the standard for the industry. Then came the SSL
VPN using secure sockets layer, an authentication and encryption technology
built into the web browser ensuring a more secure and reliable VPN. It was only
after these developments that multi protocol label switching (MPLS) ushered in a
whole new era in the age of networking.

The Story Behind

It was MPLS that redefined networks. Its adoption rate and its popularity
are both stories in themselves and so is the number of players that sprung up
seeing an opportunity in MPLS. However, a more interesting story is how these
players either fizzled out or diversified as telecom giants barged into the
arena and outwitted most of them.

Players like Sify buckled in front of the big service providers and
diversified even as the likes of Tulip manged to survive. So heres where we are
nowin a market space where telcos are investing heavily in core infrastructure
and others are looking for differentiating factors.

Although not much innovation has happened off late on this front, there have
been some noteworthy events in the journey to VPN. The most important one has
been the dwindling of the market price points of networks. Prices have come down
by at least 30% over the last two years, and there has been a conscious effort
to converge various stratas of the industry within the VPM circumference.

Another significant development has been the emerging partnership trends
between pure-play players and operators. Forced to look for bread elsewhere,
many players found their niche in areas such as VAS applications and web
conferencing, and went on to make an entry in the telecom space via
partnerships.

And lastly, something not to be missed is the limited but concentrated
innovation happening in this place. A prime example of this is the recent
concept of broadband VPN that has been introduced by Hughes. Herein, VPN servers
are built over and above the broadband network, and are a blend of WiMax,
satellite, and broadband in order to provide last mile connectivitysomething
that still remains a big challenge for telcos.

Challenges Ahead

The biggest challenge from a vendors perspective is last mile connectivity.
Although wireless technologies are increasingly becoming an answer to that, the
situation is still far from pleasing. Another challenge is security, but most
telcos are tackling that with elan.

Looking from the adopters perspective, the challenges are even bigger. There
is a problem right at the inception stage because a buyer has to make itself
attractive enough for the telcos to take an interest in it. The next problem is
the lack of IT resources that the buyer has, which in turn leads many to the
managed services route. And similar to VPN, as this space has no mid-market
players right now, things become a bit more complicated.

After all this, the abstinence pledge of SMBs from VPN doesnt go as
unexplained as vendors would like to believe. Thus, even though the market has
shown impressive growth, its potential is much more. As the clich goesthere is
always scope for improvement.

Mehak Chawla

mehakc@cybermedia.co.in