Monday, December 05, 2011
Ethernet market set to soar in coming years
The ubiquitous nature of Ethernet technologies and rising importance of network infrastructure in a variety of settings is creating an environment for meteoric growth in the Ethernet market, IDC predicts.
According to the study, Ethernet technologies generated total revenues of approximately $3.4 billion in the United States during 2010. The financial climate surrounding Ethernet will change dramatically moving forward, as significant investments are on the horizon. By 2015, the annual U.S. Ethernet revenue will likely rise to $8.2 billion.
The revenue growth in the Ethernet sector is being driven by a diverse range of markets, including the data center sector, data storage replication industry and disaster recovery market.
Nav Chander, research manager for enterprise telecom at IDC, explained the enterprise sector is rapidly turning to Ethernet to deploy a diverse range of network formats.
"Enterprises are increasingly utilizing Ethernet services for domestic and international WAN networking. The ability to efficiently transport multiple types of traffic - including voice and video, as well as non-IP-based traffic and storage traffic - is a key differentiator for Ethernet services within the enterprise," said Chander.
Other technologies are also creating demand for Ethernet infrastructure in enterprise settings. IDC found Ethernet is increasingly being deployed as an alternative to more traditional leased line systems. This is especially prevalent when working with IP VPNs and other services that are frequently deployed over leased line infrastructure. All of these solutions are moving to Ethernet, as businesses invest in the robust network architecture to enable improved network performance.
IDC also found that E-Line services currently make up approximately half of all Ethernet network deployments. Furthermore, medium-sized businesses are turning to Ethernet along with their larger counterparts. In the case of mid-size companies, voice over internet protocol deployments are key motivating factors behind Ethernet deployment. Overall, growth will average at least 20 percent on a year-over-year basis between 2010 and 2015.
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