U.S. network operators have new market opportunities in selling IP VPN

           managed services to SMBs, says Light Reading's Insider



    NEW YORK, July 24 /EMWNews/ -- The need for high-quality,

high-performance network connectivity will drive U.S.-based small and

medium-size businesses (SMBs) to spend heavily on IP VPN managed services

over the next five years, with annual revenues rising from less than $2

billion last year to more than $6.5 billion in 2012, according to the

latest report from Light Reading Insider (http://www.lightreading.com/insider), a

paid research service of TechWeb's Light Reading (http://www.lightreading.com).



    Managed IP VPN Services: SMB Market Opportunities analyzes the market

opportunity for U.S. network operators selling IP VPN managed services to

SMBs. It lays out the expectations that SMB customers have for IP VPN

managed services, including key technology features, service management,

and cost factors. The report also addresses the specific issues that

managed services providers must address to build their SMB customer base,

focusing on the key differences between the SMB sector and the

large-enterprise market. Different technology approaches to delivering IP

VPN managed services to SMBs and marketing strategies are analyzed. The

report also profiles 10 emerging IP VPN managed services providers that

specifically target the SMB sector.



    For a list of companies analyzed in this report, please visit:

http://img.lightreading.com/lri/pdf/lri0708companies.pdf



    "The SMB market is the next great networking frontier," says Charles

Carr, research analyst for Light Reading Insider and co-author of the

report. Presently, the total U.S. managed IP services market is split

between two networking solution types: "Within the IP VPN market, the SMB

sector is clearly a sweet spot for service providers and is projected to

grow at a compound annual rate of 28 percent, versus only 12 percent in the

large-enterprise space through 2012."



    SMBs that have relied on legacy Frame Relay services need more robust

and flexible connections to remain competitive, Carr notes. "SMBs need the

flexibility and scaleability of a more robust networking solution, such as

the MPLS/IP virtual private network," he says. "For this reason, SMBs

represent a clear and attractive market opportunity for providers of

managed IP VPN services."



    Key findings of Managed IP VPN Services: SMB Market Opportunities

include:



    -- Service providers now consider managed MPLS/IP VPN network solutions

critical to a winning strategy in the U.S. SMB market



    -- Indirect marketing/sales channels will dominate service providers'

go-to-market strategies and currently account for the majority of managed

IP VPN sales in the SMB market



    -- The biggest challenges facing service providers are setting

expectations through SMB education and developing a cost-effective

long-term partnership with SMB customers



    -- New network deployment in the SMB markets is now entirely IP-based

VPN, which will dominate network revenue generation in SMB by 2009



    Managed IP VPN Services: SMB Market Opportunities provides critical

insight and analysis for a range of industry participants, including:



    -- Network operators needing insight into the key issues that are

driving SMB demand for IP VPN managed services, the network operators that

are most aggressively targeting SMBs with IP VPN services, and the likely

uptake of IP VPN services by small to midsized business customers



    -- Technology suppliers looking for independent market intelligence

that quantifies the market opportunity for IP VPN services in the SMB

sector, as well as identifying the network operators that are moving most

aggressively into the SMB space



    -- Investors needing a better understanding of the scale of the

opportunity that IP VPN services presents network operators and technology

suppliers



    Managed IP VPN Services: SMB Market Opportunities is available as part

of an annual single-user subscription (12 monthly issues) to Light Reading

Insider, priced at $1,595. Individual reports are available for $900

(single-user license).



    To subscribe, or for more information, please visit:

http://www.lightreading.com/insider. For more information on all of Light

Reading's Insider services, please visit http://www.lightreading.com/research.



    To request a free executive summary of the report, or for details on

multi-user licensing options, please contact:






    Jeff Claudino

    Director of Sales

    Insider Research Services

    619-229-9940

    [email protected]



    Press/analyst contact:



    Dennis Mendyk

    Managing Director

    Insider Research Services

    201-587-2154

    [email protected]

    About Light Reading



    Founded in 2000, Light Reading (http://www.lightreading.com) is the ultimate

source for technology and financial analysis of the communications

industry, leading the media sector in terms of traffic, content, and

reputation. It reaches an extensive audience of executives and

technologists within the telecom and enterprise networking communities, as

well as the financial/industry analysts and investors who track these

sectors. Light Reading was acquired by United Business Media in August

2005, and operates as a unit of UBM.



    About TechWeb



    TechWeb (http://techweb.com/aboutus), the global leader in business

technology media, is an innovative business focused on serving the needs of

technology decision-makers and marketers worldwide. TechWeb produces the

most respected and consumed media brands in the business technology market.

Today, more than 13.3 million* business technology professionals actively

engage in our communities created around our global face-to-face events

Interop, Web 2.0, Black Hat and VoiceCon; online resources such as the

TechWeb Network, Light Reading, Intelligent Enterprise,

InformationWeek.com, bMighty.com, and The Financial Technology Network; and

the market leading, award-winning InformationWeek, TechNet Magazine, MSDN

Magazine, Wall Street & Technology magazines. TechWeb also provides

end-to-end services ranging from next-generation performance marketing,

integrated media, research, and analyst services. TechWeb is a division of

United Business Media, a global provider of news distribution and

specialist information services with a market capitalization of more than

$2.5 billion.



    * 13.3 million business decision-makers: based on # of monthly

connections