Adoption rates for Ethernet services are soaring, propelled by superior
cost effectiveness, high-bandwidth scalability, greater availability,
and overall flexibility for connecting to cloud and datacenter
virtualization applications. According to new a forecast from
International Data Corporation (IDC),
total U.S. Ethernet revenue will increase from $6.2 billion in 2013 to
$10.1 billion in 2016.
Enterprises across all major verticals are utilizing Ethernet services
for domestic and international wide area network (WAN) and metro area
connectivity, as well as for access to other services, such as
connecting to the Internet, IP VPNs, and cloud service providers. The
primary drivers of Ethernet adoption among U.S. enterprises are
high-bandwidth applications, such as datacenter inter-connectivity,
disaster recovery/business continuity, and data storage replication.
Enterprises rank security as one of the most important features of
Ethernet, followed by access to IP VPN, and service monitoring and
"Today Enterprises are increasingly utilizing 100Mb, Gigabit, 10
Gigabit, and even some 40 Gigabit Ethernet services for their domestic
and international WAN networking," said Nav
Chander, Research Manager, United
States Enterprise Communication Services. "We are also seeing a lot
of U.S. enterprises upgrading their Ethernet bandwidth and adding more
applications and business locations on net because of the economics and
faster time-to-service compared to the alternatives. Together, these
trends will enable enterprises to converge their communication platform
requirements with Ethernet."
Additional findings from IDC's research include the following:
E-Line services make up slightly less than half of Ethernet services
revenue at present
The Ethernet access market will maintain growth rates above 21% during
the forecast period driven by growth in mobile backhaul, IP VPN,
dedicated internet access services, and Ethernet VPN to cloud service
Implementation of high bandwidth Ethernet connectivity between
datacenters is one of the fastest growing requirements among
More medium-sized enterprises are also adopting Ethernet as they
migrate to VoIP, employ storage networking, and access cloud-based
The IDC study, U.S.
Carrier Ethernet Services 2013-2017 Forecast (IDC #243425),
analyzes the U.S. enterprise Ethernet services market. In addition to
discussing key trends, it forecasts Ethernet ports/circuits and revenue
through 2017. Data is segmented by E-Line, E-LAN, and Ethernet access
services -- and then further segmented 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 firstname.lastname@example.org.
International Data Corporation (IDC) is the
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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
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opportunities and trends in over 110 countries. For more than 49 years,
IDC has provided strategic insights to help our clients achieve their
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of their respective holders.
Nav Chander, 508-988-7944