The market for Carrier Ethernet (CE) has come a long way in the last several years as protocols and technologies evolve to keep pace with Web-scale networking. CE still has plenty of room for maturity and growth as service providers and operators scramble to penetrate business and home markets with new technologies and services.
The CE phenomenon is being fueled by cable operators and telecom network providers, who already have an entrenched business and consumer customer base. While previous market forecasts indicated exponential growth, analysts have revised their opinions based on more conservative growth and adoption trends. Nonetheless, there is no denying that CE is making a major impact in the Web-scale networking world and can be expected to keep evolving to keep pace with technology trends.
“Demand for Ethernet connectivity and higher bandwidth speeds continues to surge with double-digit growth,” wrote Nav Chander, research manager of enterprise telecommunications services at IDC (News - Alert). “Today, datacenter connectivity, disaster recovery/business continuity, and datacenter storage replication are the three primary applications driving adoption of Ethernet.”
According to Rosemary Cochran, co-founder of Vertical Systems Group, competitive local exchange carriers (CLECs) along with cable multiple service operators drove CE growth last year, taking credit for more than 60 percent of all new connections. Mergers and acquisitions have also played a critical role in CE market growth and maturity during the last few years, with Level 3’s acquisition of two telecoms and Charter’s massive buyout of Time Warner (News - Alert) Cable and Bright House helping to shape the market. Other key market players include Cisco, Juniper, Huawei and Nokia, which comprised 86 percent of the CE services equipment market last year, according to IHS (News - Alert) Markit.
Additional factors impacting the CE market include uptake of wireless technology and mobile broadband, according to Transparency Market Research. These trends encompass uptake of high-bandwidth broadband services like online gaming and IPTV (News - Alert), which are clearly propelling growth of Web-scale networks. As network traffic continues to multiply and service providers and carriers look for new ways to transform their architectures and services to meet demand, CE is well positioned for global growth and market penetration.
Edited by Alicia Young