Ipanema attacks the North American WAN optimization market

By , Network World |  Networking, collaboration, WAN optimization

Ipanema Technologies is now 11 years old and mainly does business in Europe but is making a push into the United Stastes hoping to land major carriers and enterprises as customers of its WAN optimization gear.

Outside the United States, the French company has amassed an impressive list of carrier customers, among them BT, Infonet, Orange, KDDI and Tata. But it recognizes that U.S.-based businesses are ripe for picking as they shift toward WAN optimization as a service, says Gartner analyst Joe Skorupa.

Death, taxes and bandwidth growth

Some corporations will continue to buy their own optimization gear, but carrier customers will sell WAN optimization -- or WAN governance, as Ipanema calls it -- to their corporate clients, providing a network-based scheme to streamline businesses' WAN connections to the point that application performance can be guaranteed, the company says.

Just 10% to 15% of U.S. businesses that use WAN optimization buy it as a service, Skorupa says, but he expects that to jump to one-third in two years. "In five years I wouldn't be surprised to see it top 60%," he says.

All of which is good news for Ipanema, which is investing in North American marketing in hopes of catching the wave.

Two years ago, 100% of Ipanema's customers were service providers. Today the split is 60% service providers and 40% enterprises by revenue, with enterprise business coming through systems integrators, network integrators and some managed service providers.

The company is different from its competitors -- which include Blue Coat, Cisco, F5, Riverbed and Silver Peak, among others -- that sell pairs of optimization appliances that sit at either end of WAN links and perform a variety of operations to reduce the number of bits it takes to complete transactions. These operations include compression, deduplication, caching, application optimization and pre-fetching, and they're part of what Ipanama does as well.

Ipanema faces competition from service providers Aryaka and Virtela, too.

The company also performs WAN governance to closely monitor WAN traffic to each site and manage it in order to prevent any one site from failing to meet quality guidelines set for application performance.


Originally published on Network World |  Click here to read the original story.
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