This report will analyze the U.S. Internet protocol virtual private network (IP VPN) hardware and software gateway markets. There are many varying market definitions of exactly what a VPN is. For the purposes of this report, the acronym VPN will refer to IP VPNs which create encrypted tunnels of communication through the Internet by using combinations of hardware and software at each endpoint. VPNs can be created using Layer Two Tunnelling Protocol (L2TP), Internet Protocol Security (IPSec) or other tunnelling protocols. Since IPSec has emerged as the de facto standard for IP VPNs, this report will focus on IPSec products, although some of those products also support other tunnelling protocols.