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...ipulsys/IDC survey shows that 47% of businesses in the NL and 42% in
the UK say 'yes' to IP VPNs


A survey of almost 400 UK and Dutch businesses commissioned by ipulsys,
the managed IP and web-enabled OSS services provider to the business and
carrier communities, and conducted by analyst firm IDC, has revealed that
more than four out of 10 UK and almost five NL businesses see IP VPNs as
the way forward for their future development. The research also revealed
that over 60% of UK businesses use WANs and a wide variety of WAN
services, and that 10% of these use IP VPNs. In the Netherlands over 50%
of interviewees reported similar IP VPN implementation.

"The future is rosy for IP VPNs," according to Eric Owen, Research
Director at IDC. "Research shows that the vast majority of current
corporate WANs are short on capacity and are carrying mainly IP traffic.
Hence WAN managers who move away from traditional WAN services, based on
private networks or on transport layer services, such as frame relay,
towards IP-based services are offered considerably more flexibility from
both a cost and capacity perspective. Given the abundance of IP already
in the enterprise, the transition to IP VPNs should be a relatively easy
one."

"It appears that WANs are definitely on the wane," says Peter Glasbeek,
CEO, ipulsys. "Our survey revealed that more than half of businesses are
not willing to settle for the insecurities and low bandwidth of the public
internet. Nor are they willing to pay premium prices for dedicated links
that force them to pay by pipe size rather than bandwidth usage. However,
they are clearly in favour of web-enabled global communications, and have
been choosing IP for the network. They are aware that IP VPNs add real
value."

The survey also explored companies' attitudes to outsourcing their
communications services, showing that nearly one in four companies now see
the advantages of outsourcing services to ensure business success in an
increasingly competitive and communications-overloaded world. This
demonstrates a significant turn in a tide that, up until now, has appeared
to surge towards scepticism and resistance to outsourcing such services.
This is clearly a factor impacting positively on IP VPN implementation.

According to forecast figures published by IDC in 2000, the IP VPN market
will accelerate strongly in terms of revenue and the number of
connections. The former is expected to grow to $2.9 billion by 2004 and
the number of connections is forecast to grow to 3,623,000 of which just
over 3 million would be dial-up.

Notes to Editors

If you require further details about the research, illustrations and
graphs can be supplied. Please see contact details below.

About ipulsys (Note: 'ipulsys' is always spelt lower case
throughout)ipulsys, the managed IP and Web-Enabled OSS services provider
to the business and carrier communities, was recently acquired by Warburg
Pincus, the global private equity and venture capital firm. ipulsys has a
dedicated multinational staff of 91 and is headquartered at The Hague in
the Netherlands, with offices in London, Paris and Amsterdam.

The company's mission is to enable international business-to-business
communications by providing web-enabled global IP solutions. ipulsys'
solutions are built on the key considerations of flexibility, speed to
market and, most significantly, customer empowerment. The company clearly
positions itself to offer the critical network functionality for doing
effective business online. For further information: http://www.ipulsys.com

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