Nemertes Impact Analysis:

Reliance Globalcom Highlights Strong Growth in Ethernet

Privately held Reliance Globalcom announced expansion of its Ethernet services to 17 countries, highlighting the need for providers to expand their scope of offerings to meet rapidly increasing demand for Ethernet services.

Nemertes' latest research shows that 73% of participants are deploying Ethernet services for site-to-site connectivity, up from 53% in 2008. Participants cite cost savings, bandwidth flexibility, and growing availability as key drivers for growth of Ethernet adoption. Fifty-four percent are using Ethernet in the metro, while 39% look to Ethernet as a local loop for access to MPLS-based services.

Impacts:

Enterprises: Evaluate Ethernet as part of your WAN strategy. Look at options for replacing leased lines with Ethernet, using Ethernet to access MPLS offerings, and Ethernet virtual private line service (VPLS) as emerging WAN options to save money and improve flexibility.

Vendors: Ethernet represents the next great WAN battlefront. Differentiate yourself by service reach, service guarantees, and value-added services around application management.

Investors: Increasing demand for Ethernet services benefits providers such as AT&T (NYSE:T), Global Crossing (NASDAQ:GLBC), privately held Masergy, Tata Communications (NYSE:TCL), Verizon Business (NYSE:VZ), as well as equipment providers including Alcatel-Lucent (NYSE:ALU), Ciena (NASDQ:CIEN), Cisco (NASDAQ:CSCO), privately held RAD, and Tellabs (NASDAQ:TLAB).

Irwin Lazar, Vice President, Communications Research

http://www.nemertes.com/ongoing_research/nemertes_ongoing_research_spring_2009_research_benchmark_computing_and_communications
http://www.businesswire.com/portal/site/google/?ndmViewId=news_view?wsId=20090513005340?wsLang=en

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