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For more information, contact:

Janine Pragit, Marketing Manager
Phone: 480-609-4548; Email: jpragit@instat.com

 Service Provider Markets 

Need to Protect Networks Becomes High Priority After September 11th

SCOTTSDALE, Ariz., February 11, 2002 - According to high-tech research firm, Cahners In-Stat/MDR, the events of September 11th may have caused the biggest catastrophe ever to hit the United States’ telecommunications infrastructure. This event, coupled with additional threats from cyber attacks, have heightened the need in the eyes of service providers, enterprises, and the federal government to protect networks from future possible attacks or disasters.

Telecommunications service providers have been protecting their networks for many years against natural disasters, such as fires, floods, hurricanes, and earthquakes. However, given the high priority that large and mid-sized companies, and government agencies are now putting on network protection after the terrorist attacks, some service providers have begun to offer portfolios of business continuity services for their customers. According to Senior Analyst Henry Goldberg, “All organizations are faced with difficult decisions about finding better ways to protect their networks, and how much to spend to improve security. In-Stat/MDR expects that more attention will be paid, in the future, to developing cost/benefit analyses that will be needed to justify any major new directions taken.”

In-Stat/MDR has also found that:
  • All three stakeholders, the business end-user, the service provider, and the federal government are faced with the difficult decision about how much to invest in measures to protect networks.
  • The September 11th attacks have heightened the federal government’s desire to protect the nation’s telecommunications infrastructure and ensure reliability. The National Telecommunications and Information Administration (NTIA) and the Federal Communications Commission (FCC) are two key organizations addressing this.
  • Even before September 11th, 75% of large US organizations either had an IP-VPN (in-house IP-VPN or outsourced IP-VPN service) or plan to have an IP-VPN within the next two years. The demand for IP-VPN services and other security services, such as managed firewall services, will be heightened.

Recent In-Stat research, Protecting Networks Against Attacks and Disasters (#IN020121TX), addresses various methods used by service providers to protect different parts of their networks ranging from Central Offices to networking facilities to Internet Data Centers. The disaster recovery processes of AT&T, Verizon, Equant, and Genuity are discussed, along with the new business continuity services offered by AT&T, SBC, and Verizon to their business customers. The report also includes a discussion of the cost/benefit analysis that must be considered by service providers, enterprises, and the government in making decisions to invest in methods to protect networks in the future.

For more information, contact:

Henry Goldberg, Senior Analyst
Phone: 480-609-4510
Email: hgoldberg@instat.com

Janine Pragit, Marketing Manager
Phone: 480-609-4548
Email: jpragit@instat.com

Report Info

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