E-Access To IP/MPLS VPNs Growing

CEN Feature (Nov 22 2011) Access , Business Ethernet , Vertical Systems

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   When offered the opportunity, more and more businesses in the U.S. that are looking to connect to IP/MPLS VPNs at speeds of 2 Mbps or higher are electing to use Ethernet access (E-Access). According to a recent study published by Vertical Systems Group, E-Access services connect 36% of all high-speed, dedicated IP/MPLS VPN sites in the U.S. The remaining 64% of high-speed connections are made using TDM T3/FT3, IP circuits, SONET, ATM, Frame Relay, Business DSL or cable company connections.

   The number of E-Access connections, and revenues from high-speed connections of 2 Mbps and above, will both continue to grow through 2015, according to Rosemary Cochran, principal of Vertical Systems Group.  

   “Revenue growth is clearly going to take place in the higher speeds,” says Cochran. “Mid-to-large enterprise businesses, including multinational companies with U.S. sites, are looking for E-Access because they want scalable service that offers them significant bandwidth.”

   E-Access to IP/MPLS VPN services are supported by every service provider with a position on Vertical Systems’ Mid-2011 Global Provider Ethernet Leaderboard and six of the nine providers on the Mid-2011 U.S. Ethernet Leaderboard. The three cable companies on the U.S. Leaderboard do not support the capability, explains Cochran. The report also provides Vertical Systems Emerging Network Services subscribers   information on market share and highlights which carriers are leading the pack of E-Access providers.

   The number of E-Access connections will increase as Carrier Ethernet service becomes more widely available to businesses here in the U.S. and around the world. Today, it is easier for smaller more regionally based companies to make the switch to E-Access to IP/MPLS VPN services because it is more likely that all, or a majority, of their sites have access to those services, says Cochran. Larger companies may not be able to make a company-wide switch just yet, because E-Access is not available at some of their locations. Their IT departments will have to wait for E-Access service to become available or implement a hybrid solution, says Cochran.

   “Large businesses may have thousands of locations. They may not be able to switch a portion of their locations to E-Access because their VPNs may have a lot of capabilities they want to retain for everyone who is accessing them,” says Cochran. “However, making the switch might make sense in certain locations.”

   Companies that are making the switch to E-Access are doing so when it is time to upgrade the speed of their IP/MPLS VPNs connections. They choose E-Access because it is more cost-effective, and available in higher speeds, yet in more granular increments of bandwidth, she explains. It also offers ease of connection to their corporate LANs. 

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