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Cloud, Video Fuel Growth of Ethernet, MPLS VPN

There’s solid growth ahead for both IP MPLS VPNs and Ethernet services, together topping $81 billion worldwide by 2016, according to new data from Infonetics Research released Monday.

“The move from legacy frame relay, ATM and leased line services onto Ethernet and IP services is quickening as businesses put a razor-sharp focus on staying competitive in today’s highly interconnected, mobile, video- and cloud-oriented world,” said Michael Howard, Infonetics’ co-founder and principal analyst. “By 2015, ATM and frame relay will virtually vanish, while private leased lines will be around a bit longer.”

Infonetics new report, “2012 Ethernet and IP MPLS VPN Services,”  analyzes and forecasts the market for managed and unmanaged layer 2 and layer 3 IP MPLS VPN services and wholesale and retail Ethernet services. 

The report also found that global Ethernet and MPLS IP VPN service revenue grew a combined 13 percent in 2011 to more than $50 billion, fueled by surging data traffic, cloud services, and cost-cutting initiatives.

In addition, the growth rate of IP MPLS VPN and Ethernet service revenue outdistances the growth rate of telecom service provider revenue (though actual service provider revenue is increasing)


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