It’s a case of the problem versus the promise: Ethernet services have both. Frame relay and ATM might be the tried-and-true way for enterprises to link locations and branches, but the market for Ethernet in the access network is continuing to grow. Simply put, the cost savings, performance and efficiency gains for service delivery make sense for both service provider and end user. There’s one not-so-small problem though: as a service provider, how do you serve businesses that have locations outside your regional footprint?
The Promise
Considering the bright side first, enterprise Ethernet technology is predicted to go into the proverbial hockey-stick mode, and very soon.
Consider: Ethernet runs IP natively, simplifying administration and lowering the cost-per-bit for services. Ethernet also lets operators deploy scalable amounts of bandwidth, so instead of taking megabits in T1-esque increments, businesses just pay for what they need. And, according to the Metro Ethernet Forum, several areas of activity are expanding the reach of Carrier Ethernet beyond the initial focus on metro fiber networks, including wireless Ethernet, and the ability to run Ethernet over copper, HFC and TDM. The result? Ethernet to link locations is not only increasingly viable, but increasingly available.
That’s beginning to translate into market growth. The first half of 2008 saw continued rapid growth of business Ethernet services in the United States, according to Vertical Systems Group Inc.'s latest market share analysis. The number of installed domestic customer ports increased more than 16 percent for the six-month period ending June 30, 2008.
"Most providers steadily increased their port deployments, spurred by new Ethernet service offerings and migration of larger customer networks," said Rick Malone, principal at Vertical Systems Group. "The competitive provider segment was the fastest growing for the period, taking advantage of SMB opportunities and rollouts of Ethernet over copper. The other two provider segments, MSO and incumbent, also experienced growth."
