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IP VPN Watch: Merger Mania Turns Network Providers toward the Data Center

| Aug 29, 2011 | Business Network and IT Services
| Analyst: Brian Washburn, Research Director, Network Services

Click here to download report (100 KB PDF)

From late 2010 through August 2011 was a period less about new technology developments for IP-VPNs, but more about landscape-changing consolidation between major providers. Size-wise, AT&T's pending acquisition of T-Mobile by far leads the pack, a consumer-focused transaction that has implications for bolstering infrastructure to increase the reach and speed of wireless/mobile IP-VPN services. More consistent is the trend by telecom carriers to add data center and cloud players to their mix of services through transactions both large (Verizon-Terremark, CenturyLink-Savvis and Time Warner Cable-NaviSite) and smaller (EarthLink-Logical Solutions). Even consolidation among telecom services providers has data center implications, as Windstream's pending acquisition of PAETEC inherits that carrier's turn to the clouds, and the Level 3-Global Crossing deal adds Global Crossing's international data center footprint.

From the IP networking services side, the end game appears to be a package of end-to-end enterprise networks that reach directly into the data center and the hosted/cloud services delivered from these facilities, baking security into the entire connection. In the future this holistic IT service delivery chain could address another important consideration – integrating security into all types of mobile devices, to make data transfer to iOS, Android and other operating systems as safe as more traditional remote access devices, such as laptops. Authentication, IP-VPN encryption and mobile device management (for locking down/locking out stolen, compromised or suspect attempts to get onto the enterprise network) are are elements of secure networking that naturally fit together.


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