Ethernet services market shows growth helped by Ethernet Exchanges

Friday, June 25, 2010

In its biannual 2010 report, Ethernet and IP MPLS VPN Services, market research firm Infonetics Research found that the Ethernet market has been driven recently by the emergence of Ethernet Exchanges.

From 2008 to 2009, the revenue for Ethernet service providers increased by 23 percent, taking in $20.8 billion during the recession-ridden year. Many companies turned to Ethernet and IP MPLS VPN services, seeing them as cost-effective methods for daily technology responsibilities. Despite the return of IT spending as the recession fades, the research firm believes the markets will continue to grow as more companies adopt the technologies and Ethernet Exchanges become more common. By 2014, Infonetics expect the two markets to reach $68.2 billion.

"The net effect of these new Ethernet exchanges, combined with fast-rising mobile backhaul connections, is a quickening of the Ethernet and IP VPN services markets, and as a result, we have raised our revenue forecasts," said Michael Howard, co-founder of and principal analyst at Infonetics Research.

The increase in the Ethernet services market has positively affected Ethernet whole carrier services. Recently, market research firm Frost & Sullivan predicted the whole carrier service market would reach $1.5 billion in revenue by 2014.