Global Enterprise WAN Services Markets: Industry Research Report

Global Enterprise WAN Services Markets

Published Date: December 2006

Published By: Frost & Sullivan

Page Count: 52

Order Code: R1-5510

Questions About This Report

E-mail a Colleague

Printable Page

Fax Your Order

Description

Table of Contents

Similar
Products

The Frost & Sullivan research service titled Global Enterprise WAN Services Markets provides market sizing and forecasts from 2005 to 2013 as well as segmentation for revenues by network operators versus virtual network operators (VNOs), and integrators, resellers, and outsourcers. Percentage breakouts are also provided for revenues by global vertical markets, network operator managed versus unmanaged services, and network operator services type are also provided. In this research service, Frost & Sullivan's expert analysts thoroughly examine the following technologies: frame relay, ATM, international private line, MPLS-based IP VPN, and Ethernet.

This analysis is available through our Communications Services Growth Partnership Service program. With these programs, clients receive industry-leading market research such as this, along with technical and econometric data as well as many interactive features including Analyst Inquiry Time and Client Councils.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

Global Enterprise WAN Services
Network Operator Segment
Virtual Network Operators (VNOs), and
Integrators/Resellers/Outsourcers Segment

Technologies

The following technologies are covered in this research:

Asynchronous Transfer Mode (ATM): A dedicated connection-switching technology that organizes digital data into 53-byte cell units instead of variable sized packets or frames, and transmits them over a physical medium.
Ethernet: A frame-based networking technology for local area networks, metro area networks and now wide area networks. Ethernet is standardized as IEEE 802.3.
Frame Relay: A cost-efficient data transmission technology for sending variable sized frames of digital traffic between LANs and end points in a WAN.
International Private Line/Leased Circuit: A point-to-point private line used by an organization to communication between offices that are geographically dispersed. IPL or IPLC is also called Clear Channel.
IP Virtual Private Network (IP VPN): A VPN based on Internet protocol (IP). A VPN is the interconnection of multiple sites via a private backbone network, or public Internet. IP-VPN services can include both CPE- and network-based IP connectivity. VPNs are widely used by enterprises to create wide area networks (WANs) that span large geographic areas, to provide site-to-site connections to branch offices and to allow mobile users to dial up their company LANs.
Multiprocotol Label Switching (MPLS): An Internet Engineering Task Force (IETF)-defined protocol that overcomes some of the shortcomings of IP-based networks. MPLS routes by label, rather than packet, making it possible for MPLS switches to steer IP traffic onto a variety of routes rather than the single path allowed in traditional switched and routed networks.
Virtual Private LAN Service (VPLS): Uses MPLS to deliver Ethernet-based multipoint connectivity over IP/MPLS networks.
Wide Area Network (WAN): A network covering a wide geographical area, involving a vast array of computers. The most well-known example of a WAN is the Internet.

Market Overview

Globalization and Expansion by Multinational Corporations Drive Market Growth

Keeping with the trend of globalization, multinational companies continue to expand into a number of countries and regions. This, in turn, is spurring the growth of the global enterprise wide area network (WAN) services markets and ensuring high demand for technologies such as multi-protocol label switching (MPLS) and Ethernet, which can easily support data, voice, and video on the same network with simpler maintenance and lower pricing than legacy services. Another trend seen in the market is that network operators are increasingly competing on value-added services, as WAN services are highly commoditized. Thus network operators will begin to take on more attributes of integrators/outsourcers. An Increase in revenues for both network operators and outsourcers is expected from multinational corporation customers wishing to converge all networks globally onto IP, resulting in more MPLS-IP VPN as well as Ethernet/VPLS services growth.

However, profitability issues are likely to remain a major challenge for market participants due to the intense price competition. Service providers have reported continuing declines in price in WAN service segments, with an occasional sign of stability or occasional minor increase. "The consolidation among providers over the last year has promised pricing stability, but little has been seen to date," notes the analyst of this research service. "Surprisingly, there are still far too many providers, many offering the same commoditized services."

Technology/Manufacturing Segment Remains the Largest Vertical Market

In terms of revenues by vertical markets, the technology/manufacturing segment which includes electronics, manufacturing, and software industries led with the largest share. Offshoring and globally dispersed offices have been prevalent in this sector for some time, and thus technology/manufacturing accounts for nearly one-third of revenues in this market. Closely following this segment is the financial segment, also accounting for nearly one-third of revenues. Government institutions accounted for the third largest share of revenues, with offices such as embassies, trade missions, military and intelligence having worldwide networks. The pharmaceutical/chemical sector closely followed the government sector.

With the decline in pricing of global enterprise WAN services and the market still populated by many providers, network operators as well as virtual network operators (VNOs) and integrators, resellers and outsourcers are beginning to compete on other criteria, in order to provide service differentiation. "Not only are providers offering an increasing number of managed versus unmanaged global enterprise WAN services, but additional software applications including business process operations, network design, maintenance, and professional services are now being offered," says the analyst. "Other telecom services such as VOIP or circuit-switched voice, remote access, and security are also increasingly bundled with the WAN service."

	Research Index \| Publishers \| My Account \| Contact Us \| About MindBranch
	Welcome Guest (Login/Register) \| 0 items