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IP VPN Not Always Most
Cost Effective
IP VPN remains the most pervasive enterprise network
service globally, but it is not always the most cost-effective
solution for every network site, suggest data from TeleGe-
ography. While not perfect substitutes, replacing IP VPN
with dedicated Internet access (DIA) or Layer 2 Ethernet
VPN (EVPN) at some sites can result in significant cost
savings, says the research firm.
According to TeleGeography, the majority of MPLS IP
VPN sales occur between 2Mbps and 10Mbps. At capaci-
ties of 10Mbps or above, or in more remote geographies
where VPN is priced at a premium or is not widely avail-
able, DIA services can provide an economical alternative.
For example, in Q1 2015, the median price of a 10Mbps
DIA port in London was $398 (USD) per month, or 36
percent lower than the $626 monthly price of a compa-
rable IP VPN port. Similarly, in Chicago, the median DIA
port price was $387 per month, or 28 percent below the
$536 per month charged for IP VPN. Price disparities
in farther-flung markets are even more apparent. In Q1
2015, median 10Mbps DIA prices in Sao Paulo and Syd-
ney were $922 and $704 per month, respectively, or 43
percent lower than the price of IP VPN in both cities.
At the 10Mbps capacity level, EVPN, which appeals
to customers requiring high-capacity multipoint-to-
multipoint connections with guaranteed class of service
levels, is priced higher than DIA and IP VPN. However, at
50Mbps and above EVPN becomes increasingly cost-ef-
fective. In Q1 2015, the median monthly price of a GigE
EVPN port in Chicago was $6,200 per month, or 40
percent lower than the $10,400 monthly price of a com-
parable IP VPN port. At $22,802 per month, the median
GigE EVPN price in Tokyo was 8 percent lower than that
of comparable IP VPN service.
Of course, while DIA or EVPN services can provide a
cost-effective alternative to IP VPN, they are not always
appropriate for every network site.
“For sites with latency sensitive requirements, IP VPN
services are able to prioritize and manage traffic, while
DIA offers no such traffic differentiation,” said TeleGeogra-
phy analyst Brianna Boudreau. “EVPN services do provide
the same traffic prioritization as IP VPN but have more
limited geographic availability and are most cost-effective
at sites with significant capacity requirements, such as
company headquarters or data centers. For many enter-
prise customers, a hybrid solution that combines all three
technologies may be the best option.”
Easton Adds Digital Voice
Easton Telecom Services recently announced its newest
service offering: Easton Digital Voice (EDV). The service,
available to businesses nationwide, offers hosted, trunk
and primary rate interface line options.
Easton has partnered with a platform-as-a-service
(PaaS) provider to deliver EDV. The company said that the
platform gives Easton the freedom to customize services
to meet the requirements of each end user serviced. When
it comes to today’s technology needs, every customer is
faced with a unique situation. So for EDV, every customer
will receive a customized quote to address these needs in
one easy-to-mange, easy-to-understand package.
“There is currently a tremendous push in the marketplace
for businesses to transition to IP-based services. The Easton
Digital Voice family of services allows us to offer a full suite of
voice services at a great price to customers large and small,”
said Rob Mocas, president of Easton Telecom.
By utilizing Easton’s long-standing partnerships with
some of the largest voice and data carriers, Easton is able
to assure quality and serviceability in a nationwide foot-
print, said Mocas.
“The Easton Advantage has always been our approach
to the reseller model. With more than 20 underlying car-
riers; Easton is able to provide multi-location customers
quality services at great rates, on one invoice, with one
customer service number to call. Easton Digital Voice
enhances our footprint and allows us to provide voice ser-
vices in many new areas,” he added.
Based in Cleveland, Ohio, all of Easton’s products and
services are carried over the networks of top providers
ensuring quality and reliability.
dinCloud Partners with CDW
Cloud services provider dinCloud recently announced
a partnership with CDW whereby CDW can now offer
and sell dinCloud’s award-winning Hosted Virtual Desktops
Media Monthly Lease Price, DIA vs. IP VPN, 10 Mbps
Source: Harris Poll, inContact
Source: Aberdeen Group
Source: TeleGeography
Streng hs of Public Cloud Contact C nters
Source: Piper Jaffray
Vendor Choice
Source: Infornetics Research
87% of surveyed medium and large bu
have SDN in live p oduction i the dat
The New Marketplace
DIA
IP VPN
Global Roaming Revenues, 2011-2016
13
7%
7%
3%
0% 10%
Percent of Respondents with SDN in
Live Production in the Data Center
Popularity
100%
50%
9%
11%
41.9
46.2
50.1
53.6 56.9
59.9
2014%
2011
2012
2013
2014
2015
2016
2015%
45%
Existing
SME Market
Head
Long Tail
Cisco
VMware/Nicera
Juniper
Dell
HP
F5
Other
Arista
Brocade
0%
20%
Online
self-service
order
tracking
0800
to
advisors
Online
chat
SMS
/Text
0800
to IVR
Apps for
mobile
devices
Social
media
sites
Online
video
chat
0%
10%
20%
30%
40%
50%
Customer interactions
are delivered through
chann l preferred by
clients
Formal organizational
intitiative to
ensure PCI
compliance
Each interaction is
measured based on its
influenc n customer
experience results
Public Cloud Contact Center
In-House Contact Centers
47%
23%
45%
33%
45%
30%
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
60
50
40
30
20
10
0
Median Monthly Lease Price (USD)
Revenue (US$ bil.)
Chicago London
Tokyo
Sydney
São Paulo
Voice
SMS Data
8
Channel
Vision
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May - June 2015