Use of IP VPNs, carrier Ethernet to rise, survey says

Most ATM, frame relay users plan switch of some sites within 2 years

While many enterprises are still using legacy technologies, such as ATM and frame relay, most plan on modernizing at least some of their locations within the next two years, according to a Current Analysis survey.

The survey, which was conducted among roughly 120 decision-makers directly involved in selecting enterprise WAN services, found 44 percent of enterprises used frame relay, while 25 percent used ATM. Among frame-relay users, 75 percent said that they planned on switching to IP VPNs within the next two years, while 46 percent said they planned on switching to carrier Ethernet within the next two years.

Meanwhile, 80 percent of ATM users said they planned to switch to IP VPNs within the next two years, while 61 percent said they planned to switch to carrier Ethernet within the next two years.

"Incumbent service providers are challenged as more businesses demand IP and Ethernet services, yet many of their largest enterprise customers continue to operate on aging ATM and frame relay networks," says David Hold, a senior network systems analyst at Current. "However, our survey indicates that the majority of those legacy users are ready to make the move to next-gen services."

The survey found the major reasons companies are deciding to switch over to next-generation WANs are the need for higher bandwidth, lower costs and a desire for bundled voice, video and data services.

Overall, a majority of firms surveyed had already implemented next-generation WAN technology, as 68 percent reported using IP VPNs and 67 percent reported using carrier Ethernet.

The survey's sample tilted toward bigger enterprises, as roughly two-thirds of respondents were categorized as medium-to-large businesses, with 36 percent spending over US$10 million per year on telecom services, and 31 percent spending between US$1 million and US$10 million per year.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Brad Reed

Network World
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?