Just curious why UDP was used - certainly there are more efficient communication channels available for communication within the same machine...
I don't know of what would be more effecient. You only have two other options...TCP/IP or writing to a file. You could also try to create subscriptions through COM+ (Enterprise Services) ....but again, this is much more overhead and much more complicated which just presents more issues in the field and during the installation. If you use TCP then you would have to have a server/client relationship and maintain the sockets. Again, more work and effort than is really necessary for something like this. We needed an asynchronous and threaded tunnel for communication between two executables that are non-related...UDP was the best choice.
The best solution is always the one that produces the fewest issues in the field when dealing with something like this. UDP is a lightweight communication protocol that is very easy to implement and has a very low potential of breaking. It is as simple as making sure a port is available and starting a listener. Also, using UDP you do not have to read a stream and maintain all of the incoming byte information. It is a simple broadcast and a clean, simple, and reliable solution.