As originally written and published on TeleGeography
New data from TeleGeography’s Enterprise Network Pricing Service reveal that while IP VPN remains the most pervasive enterprise network service globally, it is not always the most cost-effective solution for every network site. While not perfect substitutes, replacing IP VPN with Dedicated Internet Access (DIA) or Layer 2 Ethernet VPN(EVPN) at some sites can result in significant cost savings.
The majority of MPLS IP VPN sales occur between 2 and 10 Mbps. At capacities of 10 Mbps or above, or in more remote geographies where VPN is priced at a premium or is not widely available, DIA services can provide an economical alternative. For example, in Q1 2015, the median price of a 10 Mbps DIA port in London was $398 per month, or 36 percent lower than the $626 monthly price of a comparable IP VPN port. Similarly, in Chicago, the median DIA port price was $387 per month, or 28 percent below the $536 per month charged for IP VPN. Price disparities in farther-flung markets are even more apparent. In Q1 2015, median 10 Mbps DIA prices in São Paulo and Sydney were $922 and $704 per month, respectively, or 43 percent lower than the price of IP VPN in both cities.
Median Monthly Lease Price, DIA vs. IP VPN, 10 Mbps
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