Yankee Profiles Virtela IP VPN ROI

Yankee Group report on IP VPN return on investment (ROI) profiles Virtela solution, finding $4.5M in savings over Frame Relay network

October 14, 2003

3 Min Read

DENVER -- Virtela Communications, Inc., a leader in providing global managed IP virtual private network (VPN) services, today announced the Yankee Group has profiled one of its customer solutions in the firm's latest report entitled, "Evaluating Returns On An IP Investment" (September 2003). According to the report, the analyst firm anticipates customer migration and acceptance of managed IP VPN solutions will continue to grow at an escalating pace.

"Managed IP VPN solutions like Virtela's will continue to be compelling offerings for customers who are looking to get the most out of their enterprise infrastructure as well as to leverage new applications such as voice and video over IP," said Zeus Kerravala, Yankee Group's vice president of enterprise infrastructure. "As managed IP VPNs continue to work their way deeper into enterprise networking environments, more and more customers will rely on ROI/TCO tools such as the one outlined in this report."

The Yankee Group report, which provides readers with a template for calculating TCO and ROI for IP VPN solutions also includes insight to help organizations look beyond the quantitative aspects to incorporate the qualitative benefits into their analysis as well. For example, in addition to the financial and economic benefits, the report illustrates why organizations need to consider the intangible benefits as part of their networking solution such as increased staff productivity, added redundancy and the ability to enable new applications such as voice and video over IP.

The report highlights a Virtela customer from the professional services industry who selected the company's unique managed IP VPN solution over a competing frame relay solution. The company, one of the top multinational law firms, selected Virtela's solution based on its flexibility, efficiency and added benefits over competing frame relay solutions.

"We are very excited about this report and our customer's positive experiences with our managed IP VPN service," said Jeff Phillips, Virtela's Director of Marketing. "This feedback validates our value proposition for global, high-performance wide area networks for the enterprise and also provides a valuable tool for others to use in comparing networking solutions and assessing the economic impact of these solutions on their organization."

By implementing the Virtela solution, the customer estimates a total savings of $4.5 million over three years. Additionally, the customer is receiving many other benefits over its frame-relay network, including:

  • Tailored design leveraging a hybrid IP VPN implementation spanning domestic and international locations

  • Triple redundancy (access and equipment) with automatic failover in load-balanced design ... 100% network availability

  • Network-based SSL for mobile user remote access -- Secure, direct Internet access for every location -- Minimum of twice the bandwidth of prior solution -- 1.8 months to payback on investment -- Monthly recurring charges savings of 36% over existing frame relay network. 58% for an equivalent frame relay solution (i.e. redundancy, bandwidth, etc.)



For more information on the report and the customer profile, please visit http://www.virtela.com/virtela.cfm?section=about&page=resource .

Yankee Group

Virtela Communications Inc.

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