Enterprise Ethernet data speeds on the rise

CEN Feature (Aug 24 2010) Cable / MSO

1. 

   Part of the appeal of Carrier Ethernet service is its ability to support high-speed connections. According to new research from Vertical Systems Group, enterprise customers in several segments are now buying connections at speeds as high as 10 Gb/s or more. To put that in perspective, that’s the speed most carriers use for their own Internet backbone networks.

    

   As service providers begin to offer 10 Gb/s service to their customers, those connections are “being gobbled up as quickly as they’re put in,” said Rick Malone, principal at Vertical Systems Group. The financial industry was the first to adopt 10 Gb/s connectivity, but more recently 10 Gb/s service has also gained strength in the health care sector to support medical campus connectivity, and in media and entertainment, where streaming applications are becoming increasingly popular.

    

   Clients in industries such as these “are very actively trying to get the highest bandwidth available from their service providers,” said Malone. “If higher-speed service was available, they would take that.” He added that a few service providers have told him that they have begun to make 40 Gb/s or even 100 Gb/s connectivity available on a limited basis for specific customers, determining pricing on a case by case basis. A typical enterprise customer, however, takes Ethernet service at 1 Gb/s, he said.

    

   Ethernet services are not just increasing in terms of average speed; they’re also increasing in terms of the total number of connections. In the first six months of 2010, Vertical Systems researchers noted a 13 percent increase in the number of U.S. business Ethernet ports.

    

   Within the enterprise market, “Ethernet private lines are very hot right now,” Malone said. Much of this growth is driven by a natural changeover from legacy private line or SONET connections to Ethernet. End users opt for Ethernet private line service because “it’s a direct replacement and a step up in performance,” he said.

    

   According to Vertical Systems research, nine service providers have a share of four percent or more of the U.S. Ethernet market. In descending order by market share, these companies are AT&T, Verizon, tw telecom, Cox, Qwest, XO Communications, Time Warner Cable, Cogent and Level 3 Communications.

    

   Detailed results of Vertical Systems enterprise Ethernet research are available to communications industry clients on a subscription basis.

   Bookmark or Share this article

Login to comment