Carrier Ethernet services get a bullish thumbs-up from Insight Research's latest report. The firm expects Ethernet services to grow at a compounded rate of more than 25 percent, rising from $2.4 billion this year to nearly $7.8 billion by 2014.
"Carriers and Ethernet Services: Public Ethernet in Metro & Wide Area Networks 2009-2014" says the current economic recession is expected to dampen Ethernet service growth to 14 percent this year, with growth accelerating again in 2010. Peak revenue growth of 32 percent is expected by 2010.
Despite the bullish forecast, Insight says that Ethernet isn't going to take over the world. Existing private line and frame relay customers aren't going to dump those services overnight, so the migration to Ethernet is expected to be "slow and steady." Advantages to Ethernet services that might attract those legacy customers include flexible bandwidth and scalability.
For more:
- Insight Research's press release.
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