IP-VPN and Ethernet WAN services are increasingly popular in the APEJ market as companies seek flexibility, simplicity, scalability and high bandwidth for their data communication needs, according to Frost & Sullivan.
"IP VPN and Ethernet also address security concerns, making them the preferred choice for WAN services," said F&S industry analyst Shaker Amin.
But IP VPN dominates the regional WAN market, accounting for an estimated 31% of all WAN service revenues in APEJ last year.
The sector will grow at a CAGR of 17.8% until 2014, says Amin.
But while IP-VPN services have far surpassed legacy technologies such as frame relay and ATM, these are unlikely to disappear altogether, Amin said. Some still prefer the technologies for their higher quality, while others will be unable to justify the cost of a full migration to all-IP.