IDC: U.S. Ethernet services market to almost double by 2016

SMBs to adopt Ethernet as they move to VoIP
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Total Ethernet revenue in the United States is predicted to increase from $5.2 billion in 2012 to $9.2 billion in 2016, fueled by cost effectiveness, high-bandwidth scalability, ease of implementation and overall flexibility, according to new research from IDC.

Forrester Research found a similar trend in Europe, where almost 40 percent of European enterprises are deploying Ethernet services, with a particular interest in virtual private LAN service-based Ethernet (E-LAN).

Datacenter connectivity, disaster recovery/business continuity and data storage replication are the three primary applications driving adoption of Ethernet, observed Nav Chander, research manager for enterprise communication services at IDC.

"We are seeing a lot more medium-size U.S. enterprises adopt Ethernet with more fiber availability, more service competition, and faster time-to-service compared to alternatives," Chander said.

Growth of Ethernet access as an alternative to leased lines for access to other services, such as to the Internet or IP VPNs, is also contributing to demand. Ethernet services are often significantly less expensive than private line or packet services, and lower equipment costs also contribute to overall cost effectiveness.

The IDC study also found that E-line services make up slightly less than half of the Ethernet services revenue at present; Ethernet access market will maintain growth rates above 20 percent during the forecast period driven by growth in mobile backhaul, IP VPN and dedicated Internet access services; and implementation of high-bandwidth Ethernet connectivity between data centers is a growing trend among enterprises.

Ethernet services should be particularly attractive to small and medium-sized businesses as they move to VoIP, employ storage networking and access cloud-based services.

For more:
- see IDC stats
- check out Forrester report

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