New study expects ethernet access to fuel IP/MPLS VPNs revenue

Monday, November 21, 2011

A recent study by Vertical Systems Group revealed that ethernet access accounts for 36 percent of all dedicated high speed internet protocol/ multiprotocol label switching virtual private network sites in the United States.

The study, which analyzed VPN speeds reaching levels of 100 megabits per second or above, also indicated that the demand for 2 Mbps and greater connectivity is expected to fuel revenue for dedicated IP/MPLS VPNs through 2015.

"E-Access to IP/MPLS VPN services are gaining momentum as business customers migrate to higher bandwidth connectivity solutions," said Vertical Systems Group research services director Erin Dunne.

Dunne added that a major buying decision regarding networking speeds is the availability of the service, which is supported by six of the nine U.S. providers included in the company's research.

As ethernet access continues to grow in the U.S. market, ethernet switch prices are actually on the decline. Network World reported in September that a study conducted by an industry research firm revealed that the prices of ethernet switches are projected to drop between 10 and 20 percent this year.