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P R E S S R E L E A S E :
Enterprise Spending on Carrier Ethernet Services Will Top $37
Billion Over Five Years, says Insight Research
Wed, 02 Jun 2010, 12:23:04 EDT
BOONTON, N.J. (SEND2PRESS NEWSWIRE) -- US enterprises and consumers are
expected to spend more than $37 billion over the next five years on Ethernet services
provided by carriers, according to a new market research study from The Insight
Research Corporation. With metro-area and wide-area Ethernet services readily
available from virtually all major data service providers, the market is expected to grow
at a compounded rate of almost 25 percent, increasing from $3.1 billion in 2010 to reach
nearly $9.7 billion by 2015.
According to Insight Research's market analysis study, "Carriers and Ethernet Services:
Public Ethernet in Metro & Wide Area Networks, 2010-2015," the economic recession
that emerged in late 2008 has not dampened US enterprises appetite for Ethernet
service. Insight is projecting the surge in demand will peak by 2011 as the economy
improves Ethernet revenue growth rates hit 29 percent on a compounded annual basis. Ethernet services are marketed under
various names: transparent or native LAN, Ethernet, Gigabit Ethernet, GigE, metro Ethernet, Ethernet private line, Ethernet
virtual private line, Layer 2 virtual private network, Ethernet access, and virtual private LAN service.
"The momentum behind retail sales of Ethernet services to the enterprise is being driven by the customer's steadily increasing
demand for data bandwidth and Ethernet's real cost advantages in terms of providing flexible bandwidth and scalability that is
superior to many competitive services," says Robert Rosenberg, president of Insight Research. "The driving force behind
wholesale Ethernet sales is improved interoperability among carriers, greater confidence in emerging and recently adopted
standards, as well as shifts by more carriers to a more