Network service and Web-hosting provider Verio Inc. is moving into the customer premise equipment (CPE) market today with the release of a managed CPE-based virtual private network (VPN) service.
Called SafeGuard VPN.CPE, the Englewood, Colo.-based company's service will provide IPsec tunneling and encryption through security devices located on a customer's premises. According to Verio, by handling all management functions remotely, companies with multiple office locations can more easily provide VPN services to their employees.
SafeGuard VPN.CPE complements Verio's Global IP Security Gateway service, the managed, network-based VPN service that the Nippon Telephone and Telegraph (NTT) Communications Corp. subsidiary released last year.
Steve Harris, a research manager with Framingham, Mass.-based International Data Corp., said the announcement is significant because it means Verio can now serve large and midsized customers that have hybrid VPN networks; the tool would be valuable, for instance, when a customer's firewall is in one location and a router is in another.
Harris said that CPE-based VPN products are more secure than network-centric products because they provide local loop encryption.
Even though Tokyo-based NTT has reduced services and eliminated jobs at Verio since it acquired the company in 2000, Harris said there's no reason to believe the company is in danger of closing.
"NTT is such a big company, so the only way Verio would go away is if NTT decided it didn't want to fund Verio any longer. We have seen companies do that in the past, but unless that happens, they're financially stable, as far as I can see," Harris said.
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