Robust Ethernet Service Adoption Drives Revenues to $8.2 Billion by 2015, IDC Says

FRAMINGHAM, Mass., December 1, 2011 – Adoption rates for Ethernet services are soaring, propelled by superior cost effectiveness, high-bandwidth scalability, ease of implementation, and overall flexibility. According to new research from International Data Corporation (IDC), total U.S. Ethernet revenue will increase from $3.4 billion in 2010 to $8.2 billion in 2015.

Datacenter connectivity, disaster recovery/business continuity, and data storage replication are the three primary applications driving adoption of Ethernet. "Enterprises are increasingly utilizing Ethernet services for domestic and international WAN networking," said Nav Chander, research manager, Enterprise Telecom. "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."

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. Additionally, Ethernet services are often significantly less expensive than private line or packet services, and lower equipment costs also contribute to overall cost effectiveness.

Other key findings from IDC's research include the following:

E-Line services make up slightly more than half of the Ethernet services revenue at present

Ethernet access market will maintain growth rates above 20% during the forecast period

More medium-sized enterprises are also adopting Ethernet as they migrate to VoIP, employ storage networking, and access cloud-based services

Implementation of hybrid Ethernet and IP VPN networks are a growing trend among enterprises

The IDC study, U.S. Carrier Ethernet Services2011-2015 Forecast (IDC #231257), analyzes the U.S. enterprise Ethernet services market. In addition to discussing key trends, it forecasts Ethernet ports/circuits and revenue through 2015. Data is segmented by E-Line, E-LAN, and Ethernet access services — and then further subsegmented by metro area network (MAN) and wide area network (WAN) services, and also by speed. E-Line revenue is split into Ethernet private line (EPL) and Ethernet virtual private line (EVPL), and the E-LAN revenue forecast includes segmentation for Ethernet virtual private LAN services (VPLS).

To purchase this study, please contact IDC Sales at 508-988-7988 or sales@idc.com

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 47 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.