The demand for Business Ethernet service continues to grow as companies come to find that they can purchase more bandwidth for a lower cost per bit in order to support their higher speed metro, regional, nationwide and global network applications. Across the globe, today’s leading service providers are already either planning or delivering Ethernet service offerings to meet these rising demands
According to the market research and strategic consulting firm Vertical Systems Group, Business Ethernet is the enterprise services component of carrier Ethernet. Carrier Ethernet is the standard groundwork for technical solutions that assist service providers with improving their existing services while facilitating the deployment of sophisticated capabilities and applications.
Business Ethernet is comprised of many services – from simple web access to Virtual Private Line Service with multiple access rates that range from sub 10 Mbps up to gigabit speeds.Vertical Systems Group(VSG) defines the 4 key services segments as follows:
Metro Local Area Network
Dedicated Internet Access (DIA)
Long-haul mesh, including E-Access to IP MPLS VPNs and Wide Area Network VPLS
Ethernet Private Line (EPL), including private lines (PLs) and virtual private lines (VPLs)
One of Business Ethernet’s biggest selling points is that it offers companies the security of a private line service without the hassle of additional equipment or bandwidth limitations.
The most recent of Vertical Systems Group’s calculations predict the Business Ethernet services market will reach a whopping billion.
In order to support the large-scale shift, equipment vendors are building and delivering new service enabling carrier Ethernet solutions
VSG also forecasts increased growth in Business Ethernet services in Asia, the Middle East, Africa (AMEA) and the U.S. over the next 5 years. VSG believes the driving force behind the growth will be both the service migration for multi-national or large enterprises with worldwide networks as well as domestic growth. On the whole, the fastest growing Business Ethernet segment is long-haul mesh; although at the moment the base of customer reports is fairly diminutive as carriers pursue migration from legacy ATM, private line or wire-line frame services.
About Vertical Systems Group
VSG aims to provide accurate, thorough, sound analysis and statistics on networking markets. Its research reporting focuses on Internet access, VPLS, MPLS, DSL, ATM, Private Lines, Frame Relay, IP VPNs and Ethernet services. All of VSG’s market forecasts are inter-dependent, with specific concentration on the way legacy market segments are impacted by industry shifts to competing and emerging technologies.