I'd like to call your attention to another eBook FierceTelecom is debuting today titled Ethernet Exchanges Make the Interconnection.
Albeit still an emerging concept, an Ethernet exchange is a neutral point where Ethernet service providers can connect to one or more other carriers at a common peering connection point, the exchange is designed to simplify and speed up the interconnection process.
While other players could emerge, the Ethernet exchange market is currently being led by four major players: CENX, Equinix, Neutral Tandem and TELX.
Each of these players, not surprisingly, came to the Ethernet exchange market from different points. CENX, for one, was launched by Metro Ethernet Forum President Nan Chen from the ground up to be a standalone Ethernet exchange. Meanwhile, Equinix, Telx and Neutral Tandem (Nasdaq: TNDM), which began their lives as data center/colocation and voice tandem providers, all decided to add Ethernet exchange to their list of services.
Vertical Systems Group forecasts that the Ethernet exchange market will be worth US$674 million in 2014. However, Rosemary Cochran, Principal and co-founder of Vertical Systems Group, points out in The Ethernet exchange: If not now, when? it will take a few more years for Ethernet exchanges to expand worldwide and the business model to stabilize.
"The providers we've talked to in our survey all over the world are split--half of them say, 'yes, we're going to use it in the next two years,' and about half of them say, 'we're not sure.'"
Even incumbent service providers like Verizon, which earlier this year joined CENX's Ethernet exchange, see the necessity in belonging to an Ethernet exchange to meet specific customer needs. At the same time, Larry O'Neill, manager of Ethernet product development at Verizon (NYSE: VZ), believes that the Ethernet exchange could be a stepping stone for some of its wholesale and even enterprise clients to establish direct connections.
In this eBook, Ethernet Exchanges Make the Interconnection we'll discuss how diverse strategies, technologies and opportunities for Ethernet exchanges.
Take a look and of course, let us know what you think.--Sean