U.S. Ethernet revenue to increase from $5.2 billion in 2012 to $9.2 billion in 2016

Infotech Lead America: Total U.S. Ethernet revenue will increase 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.

High bandwidth applications such as datacenter connectivity, disaster recovery/business continuity, and data storage replication are the three primary applications driving adoption of Ethernet in the U.S., IDC said in its research report.

Nav Chander, research manager, Enterprise Communication Services

“Enterprises are increasingly utilizing 100Mb, gigabit, and even 10 gigabit ethernet services for domestic and international WAN networking,” said Nav Chander, research manager, Enterprise Communication Services.

Growth of Ethernet access as an alternative to leased lines for access to other services, such as to the Internet or IP VPNs, is also contributing to demand. Additionally, Ethernet services are often significantly less expensive than private line or packet services, and lower equipment costs also contribute to overall cost effectiveness.

IDC said E-Line services make up slightly less than half of the Ethernet services revenue at present.

Ethernet access market will maintain growth rates above 20 percent during the forecast period driven by growth in mobile backhaul, IP VPN, and dedicated Internet access services.

More medium-sized enterprises are also adopting Ethernet as they migrate to VoIP, employ storage networking, and access cloud-based services.

Implementation of high bandwidth Ethernet connectivity between data centers is a growing trend among enterprises.

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