Procurement Market Intelligence Report
Managed VPN Services
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Managed VPN Services Global Overview
Definition
Summary
Managed VPN services involve a third-party company, often a telecommunications or network service supplier, providing and overseeing the technologies that allow a buyer to securely access a wide area network (WAN) over the internet. These technologies include network tunneling, authentication, and encryption. By managing these services on behalf of the buyer, suppliers can help buyers reap the cost savings and security benefits of a high-quality VPN service without having to own and manage their own VPN. Typical buyers of these services include a wide range of businesses, government agencies, and consumers. This report does not cover internet broadband connections or hosting solutions.
This Report Includes:
- Network Tunneling
- Network Authentication
- Network Encryption
Not in this Report:
- Internet Broadband Connections
- Hosting Services
Global Managed VPN Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 Oceania & Southeast Asia | 129,920 |
| #2 India | 45,065 |
| #3 Europe | 40,365 |
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Geography Drilldown - US
Average Cost of Managed VPN Services
United States
2026 Market Pricing$60.00 to $X,XXX.XX
per VPN line per yearAverage Price
Prices in the Managed VPN Services market range from $60.00 to $X,XXX.XX, depending on Speed of VPN, Type of VPN, Security Measures, Scope of Service and Payment schedule. For example, lower prices are associated with 1 Megabit per second (Mbps) to 10 Mbps ($60.00 to $120 per VPN line per year), whereas higher prices are associated with 10 Mbps to 100 Mbps ($60.00 to $300 per VPN line per year), 100 Mbps to 1 Gigabit per second (Gbps) ($150 to $400 per VPN line per year) and Over 1 Gbps ($350 to $3,000 per VPN line per year).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Managed VPN Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Managed VPN Services market, prices in the US have grown 0.9% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
Wondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Managed VPN Services
Total cost of ownership is Low in the Managed VPN Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Emergencies may raise the total cost of ownership unexpectedly.
Negotiated Before
Set Up Fees
Other Fees
Billed During
Capital Tie-Up
Hardware
Unforeseen
Emergencies
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to 0.9 in the United States. Buyer power is most positively impacted by Forecast Price Trend. It is most negatively impacted by Recent Price Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
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- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Internet Service Providers
- Telecom Equipment Suppliers
- Enterprise Software Suppliers
2nd
Tier Suppliers
- Wire & Cabling Suppliers
- Semiconductor & Circuit Manufacturers
- Network Monitoring Software Developers
Biggest Managed VPN Services Suppliers in the US by Revenue
The largest Managed VPN Services vendors by revenue in the US are Ventus Networks LLC, Comcast Corporation and At&T Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Cisco Systems, Inc. | Global | SAN JOSE, CA | >10,000 | 10-15 | ||||
| Juniper Networks B.V. | Global | SUNNYVALE | >10,000 | 10-15 | ||||
| F5 Networks Inc. | Global | SEATTLE, WA | 1,001-10,000 | 10-15 | ||||
| At&T Inc. | Global | DALLAS, TX | >10,000 | 5-10 | ||||
| Comcast Corporation | Global | PHILADELPHIA, PA | >10,000 | 5-10 | ||||
| Fidelity National Information Services, Inc. | Global | JACKSONVILLE, FL | >10,000 | 5-10 | ||||
| OpenText Corporation | Global | ONTARIO CANADA | >10,000 | 5-10 | ||||
| Zayo Group Holdings, Inc. | Global | BOULDER, CO | 1,001-10,000 | 5-10 | ||||
| Ntt Data Corp | Global | Tokyo, JP | >10,001 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Managed VPN Services market is 8.5% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is stagnating, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Moderate profit levels and strong, increasing demand for managed VPN services have provided many suppliers with a healthy bottom line and room to negotiate prices down.
While the market will become more consolidated in the next three years, the overall level of concentration will remain moderate, providing buyers with a healthy range of possible solutions from many different suppliers.
Supply chain risk for managed VPNs is low, despite some risk in the supply of internet service. Regardless, industry-wide internet service is unlikely to be interrupted for extended periods of time.
The United States is a net importer of network equipment, which indicates a high level of competition in the market from foreign vendors. However, the increased reliance on overseas vendors heightens the risk of supply chain disruptions.
Supplier Information
Cisco Systems, Inc.
Cisco Systems, Inc. is a public company operating globally in the manufacturing, information and professional, scientific and technical services sectors. The company's offerings include rail signaling systems, office phones, print servers, computer servers, database management systems. Founded in 1984, the... Subscribe to learn more
F5 Networks Inc.
F5 Networks Inc. is a public company operating globally in the information sector. The company's offerings include load balancing software and managed vpn services. Founded in 1996, the company is currently headquartered in SEATTLE, Washington, United States of America with an estimated 7089 employees. Subscribe to learn more
Juniper Networks B.V.
Juniper Networks, Inc. is a networking technology company delivering solutions for cloud and telecommunication service providers and enterprises. It offers routing solutions for wide-area networking; cloud management, networking, and security solutions for campus and branch environments; fabric management,... Subscribe to learn more
At&T Inc.
At&T Inc. is a public company operating globally in the manufacturing, information and professional, scientific and technical services sectors. The company's offerings include electronic logging devices, smartphones, office phones, air cards, mobile enterprise application platforms. Founded in 1885, the company... Subscribe to learn more
Comcast Corporation
Comcast Corporation is a public company operating globally in the information and accommodation and food services sectors. The company's offerings include air cards, pbx phone systems, online advertising, internet services, network voice services. Founded in 1963, the company is currently headquartered in... Subscribe to learn more
Fidelity National Information Services, Inc.
Fidelity National Information Services, Inc. is a global financial technology company. It organizes its business into three reportable segments: the Banking segment, which offers core processing and transaction processing software and complementary applications and services; the Merchant segment, which serves... Subscribe to learn more
OpenText Corporation
Open Text Corporation is an information management company that provides software and services for global enterprises, small and medium-sized businesses, governments, and consumers. It delivers software as a service (SaaS) offerings, application programming interface (API) services, data services, and private... Subscribe to learn more
Zayo Group Holdings, Inc.
Zayo Group Holdings, Inc. is a public company operating globally in the information sector. The company's offerings include data center services, managed vpn services and dark-fiber network services. Founded in 2007, the company is currently headquartered in BOULDER, Colorado, United States of America with... Subscribe to learn more
Charter Communications, Inc.
Charter Communications, Inc. /MO/ is a broadband connectivity company and cable operator serving customers across the US under the Spectrum brand. It offers a full range of subscription-based connectivity services, including fixed and mobile Internet, video, and voice services to residential and business Subscribe to learn more
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Procurement Management KPIs for the Managed VPN Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Customer Concentration and Customer Satisfaction (CSAT). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Pricing and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Customer Concentration |
|
Revenue per customer (RPC) Total revenue |
The customer concentration represents the amount of revenue associated with a single customer. The customer concentration can be used to determine the need to diversify client portfolios. It is recommended that the customer concentration remains at or below 10.0%. |
| Customer Satisfaction (CSAT) |
|
Customer complaints Number of positive customer responses |
Customer satisfaction represents customers’ overall satisfaction with the supplier's VPN services. Customer satisfaction can be used to evaluate customers' satisfaction levels with the provided managed VPN services to identify areas requiring improvement. Customer satisfaction can be used to evaluate a company’s reputation. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Reliability
How often have you not met your expected bandwidth or uptime commitments during the past three years? Why?
What are the main reasons for occasional slowdown in bandwidth and downed VPNs?
Competition
Have you been gaining or losing market share during the past three years?
Who is your largest direct competitor?
Customer Service
How quickly do respond to an interruption in service?
Is your customer support available at all times? What are the wait times like?
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Managed VPN Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should describe their operations (commercial office, tech, industrial, etc.) and why they are seeking managed VPN services.
Buyers should provide a detailed description of their management structure, including to whom the supplier will be reporting.
Statement Of Need
After laying out the scope of services needed, buyers should describe the specifics of what they are looking for in managed VPN services (level of security, bandwidth, number of users, etc.).
Buyers should provide a description of major IT sites, and plans for additional networks and offices.
Project Budget
Buyers should explicitly state the amount for the award.
Buyers should describe the expected pricing model to be used (annual, monthly, etc.).
The RFP process made easy
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
