|
|
 |
|
Viewing report
|
|
|
|
U.S. MPLS/IP VPN Services Market Update 2010
Frost & Sullivan, Oct 2010, Pages: 50
This study presents a detailed analysis of demand drivers in the U.S. markets fueling the growth of MPLS VPN services. The study also presents a detailed analysis of the market restraints and key market and technology trends impacting service provider revenues from the service. Detailed revenue forecasts segmented by wholesale and retail markets are also included in the study, along with a brief discussion of pricing trends and an overview of the competitive landscape
This research service titled U.S. MPLS/IP VPN Services Market Update 2010 provides an analysis of key market drivers, restraints, and trends that are impacting the multiprotocol label switching/Internet protocol virtual private network (MPLS/IP VPN) services market. The study also presents market share analysis and competitive analysis of the market. In this research, Frost & Sullivan's expert analysts thoroughly examine the following technologies: layer 2 VPN and layer 3 VPN.
Market Overview
Layer 2 Ethernet based VPN Gains Traction in the U.S. MPLS/IP VPN Services Market
The U.S. MPLS/IP VPN services market is in the growth stage of product lifecycle with demand for the service increasing across verticals. Presently, an interesting trend in the wide area network (WAN) transport space is that customers are demanding for a combined private IP layer 3 solution and layer 2 Ethernet solution for their fully meshed connectivity needs. Customers do not want to differentiate between layer 2 and 3. Instead, they are increasingly looking to solve their business problem with a combination of services. For network connections that they are used to managing themselves – e.g., HQ location to data center or between data centers, where they are running very specific applications - they are asking for layer 2 Ethernet. For branch locations, they are asking for layer 2 Ethernet. For branch locations, they are demanding layer 3 VPNs, thus encouraging layer 2 and layer 3 VPNs to coexist in a complementary fashion in the market. “Market trends also indicate that as customers get comfortable with layer 2 VPN and get involved in enhanced traffic shaping, they cannot do all of that on the Ethernet switches they use today, and they are looking at carriers to provide some enhancements,” notes the analyst of this research service. “If the IT staff is not able to provide any kind of class of service (CoS) treatment before the traffic goes to the WAN link, then they are not going to get the desired performance; service providers are seeing this as an opportunity to sell their managed services along with the VPLS service offerings.”
As the market migrates to MPLS VPNs to take advantage of the network’s ability to support traffic prioritization through CoS, there is a greater focus on network and application performance monitoring tools. Both these tools are critical for the success of MPLS VPN implementation as customers shift to a converged architecture and demand more control over the applications they wish to run on the network.
“Traditional time division multiplexing (TDM) services still rule the access space in the US, thus creating a bottleneck for customers to migrate to higher bandwidth ports,” says the analyst. “The ubiquitous availability of T1/T3 links in the US has led to the domination of TDM services in the MPLS VPN segment.” Observations reveal that T1 and fractional T3 speeds are the most predominantly used services to connect to MPLS network. As the bandwidth needs of customers grow, they are increasingly evaluating Ethernet options. The fact that the bandwidth needs for most networked business locations are yet to grow to 10 Mbps is driving some carriers to consider offering sub 10 Mbps speeds on Ethernet over Copper product. Market trends indicate that service providers find it difficult to convince companies using 1.5 Mbps to adopt 10 Mbps, if these companies will not require beyond 1.5 Mbps. Over time as the applications start consuming more BW, they might upgrade to higher Ethernet speeds. However, if companies are using a 3 Mbps or 4.5 Mbps, then it is an easier discussion to move them to 10 Mbps, because they know they are going to need more BW, and DS3 will cost a lot more.
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
- Wholesale
- Retail
- Technologies
The following technologies are covered in this research:
- Layer 2 VPN
- Layer 3 VPN
Product samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
Global MPLS IP VPN Services Market 2011-2015
U.S. MPLS/IP VPN Services Market
MPLS IP VPN Services Market in the US 2011-2015
U.S. Retail Carrier Ethernet Services Market Update, 2011
Mid-Sized Business Markets for Telecom Services: Wireline Voice, Wireline Data, Wireless, Cloud Computing, and VoIP in 20 Verticals
In-Sights: IP VPN QoS & Converged Network Adoption
Latin American Data Communications Services Markets - 2010
IP VPN and Network Convergence Adoption—US Professional Services
Metro Ethernet - Global Strategic Business Report
US Mobile Backhaul 2010: Continued Expansion 2009 to 2015 and the Needs of the Middle Network
|
|
|
|
