Companies are spending an average £30,000 each time they implement a virtual private network upgrade, with 37% of CIOs rolling out a VPN upgrade once a year, according to research.
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Of 500 CIOs surveyed on behalf of Virgin Media Business, around 58% said securing finance was the biggest challenge they faced when upgrading their networks. A further 58% said their biggest challenge in 2012 was a tighter IT budget.
Rob Bamforth, senior analyst at Quocirca, said the cost is not surprising, as many businesses are expanding networks to keep pace with flexible working requirements.
The research follows the launch of Virgin Media Business' Big Red VPN, running on bandwidth of 10Mbps 100Mbps and 1Gbps respectively for a flat price. Virgin said it could not put a price on the packages, as it said each customer would have different requirements.
Bamforth said the product was part of a trend for companies pushing for an on-demand approach to network access. “One of the key things – and it is true of all VPN packaging - is that CIOs need the ability to scale incrementally as they scale up. It’s critical for all network suppliers to be able to deliver that. And they shouldn’t have to hit a ceiling when they scale up.”
Alison Adams, head of VPN at Virgin, said the product would take out the downtime involved in having to do a yearly upgrade by moving to a more incremental approach.