European managed IP VPN market generated $4.3 bln in 2004

Western European managed IP VPN services market grew 23% in 2004, but the hyper-growth phase will end next year, IDC says. The market was worth $4.3 bln in 2004 and will grow to $5.8 bln in 2009, with over 80% of that growth taking place in 2005 and 2006. Total spending by customers on IP VPN services from network service providers is still increasing at a rapid rate, but in 2006 the growth will slow to 8% and in 2007 will decrease further to 3%.