Ethernet services thrive despite recession

A study found that Ethernet service revenues totaled US$16.9 billion last year

A gloomy economy hasn't stopped the growth of the Ethernet services industry, as a new study from Infonetics Research  finds that global revenues grew sequentially by 36% in 2008.

Overall, the study found that Ethernet service revenues totaled US$16.9 billion last year and Infonetics says it expects revenue to double to $33 billion by 2013. In addition to strong Ethernet service growth last year, the study also found that global Layer 2 and Layer 3 IP MPLS VPN service revenue increased by 16% in 2008.

Slideshow: Evolution of Ethernet

Infonetics analyst Michael Howard said that the current global recession is actually a reason more companies are adopting Ethernet and IP MPLS VPN services, as adopting those technologies will help them "increase efficiencies and reduce costs." Infonetics says that Ethernet services on average cost between 20% to 30% less than frame relay or private line services, and the research firm also found that North American Ethernet services cost about one-third per megabyte less than DS3s or SONET services

"Organizations are looking to control WAN costs despite rising bandwidth needs by turning to Ethernet, a known cost-per-bit champion," says Howard, who notes that companies are also adding managed Layer 2 and Layer 3 services because "service provider expertise and tools can help stabilize costs, prioritize critical applications and increase capacities."

Although the Ethernet services market has continued to grow during the current recession, the market for Ethernet equipment is not expected to fare nearly as well. A report issued by the Dell'Oro Group earlier this year projected that the Ethernet switch market will undergo its steepest decline in eight years in 2009 and that the market for service provider routers would decline for the first time since 2002.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Brad Reed

Network World
Show Comments

Brand Post

Bitdefender 2019

Taking cybersecurity to the highest level and order now for a special discount on the world’s most awarded and trusted cybersecurity. Be aware without a care!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?