Week in research: U.S. wholesale an attractive international buy; Latin America poised for cloud

U.S. wholesale service an attractive buy: With prices for high-capacity IP transit services falling, international carriers are looking to the United States for expansion opportunities, and are increasingly purchasing wholesale services through three major entry points for international communications networks: New York, Miami and Los Angeles. Median 10 GigE prices in the second quarter of 2012 ranged between $1.50 and $2 per Mbps, says TeleGeography in a new report, spurring demand from foreign carriers. Report

TeleGeography IP Transit prices

Ethernet demand booms: High-bandwidth applications are driving a boom in demand for Ethernet services, which can be implemented easily at relatively low cost, and are scalable and flexible. IDC said total U.S. revenue for Ethernet services will climb from $5.2 billion in 2012 to $9.2 billion in 2016. "Enterprises are increasingly utilizing 100Mb, gigabit, and even 10 gigabit ethernet services for domestic and international WAN networking," said Nav Chander, research manager, in an IDC release. "We are seeing a lot more medium-size U.S. enterprises adopt Ethernet with more fiber availability, more service competition, and faster time-to-service compared to alternatives." Article

Latin America poised for cloud: SME (small to medium sized enterprise) cloud services in Latin America is taking off, says Research and Markets, with the market forecast to reach $1.9 billion by 2017, growing at a CAGR of 38 percent. The SME cloud services segment represents 42 percent of the overall market in U.S. dollars—however, in Latin America, this segment counts for 99 of every 100 businesses. "The results of this study helped us conclude that the SME segment in Latin American is still not well served by telcos or the cloud service providers," a release from the research firm stated. "Pyramid Research believes that there is an opportunity for Latin American telcos to capitalize on the SME market primarily because they own the relationship with a critical mass of SME customers in the region, among other reasons." Release