Ethernet, IP MPLS VPN services grow amid downturn: Infonetics Research

13 Aug 2009

Infonetics Research said in a new report that in spite of the downturn, and in part because of it, uptake of IP MPLS VPN and Ethernet services is growing at a healthy pace as companies seek to increase efficiencies and decrease costs.

Michael Howard, Infonetics Research co-founder and principal analyst, said organizations today are looking to control wide area network costs despite rising bandwidth needs by turning to Ethernet -- a known cost-per-bit champion -- and to managed Layer 2 and Layer 3 services, where service provider expertise and tools can help stabilize costs, prioritize critical applications, and increase capacities.

The report finds that worldwide service provider revenue for Ethernet services grew 36% sequentially to $16.9 billion in 2008 and is forecast to nearly double to $33 billion by 2013.

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