Enterprises Want Ethernet But Adoption Hindered by Availability

More enterprises around the world are turning to Ethernet VPLS and MPLS IP VPN services; however, Ethernet adoption isnt soaring as much as MPLS VPN due to a lack of availability.

New research from TeleGeography shows Ethernet deployments lag far behind their MPLS VPN counterparts. Thats because more than half of the 63 international service providers studied by TeleGeography offer MPLS VPN service in 10 or more countries, while less than one-third of operators provide Ethernet VPLS.

The availability of IP VPN and Ethernet VPN services tends to differ by region. TeleGeography identified 39 IP VPN providers in Europe; 34 in Asia; 31 in the United States and Canada; and 19 in Africa and Latin America.

And even though Ethernet VPN services are less widely available in all of these areas, the absence is particularly pronounced in emerging markets. While 32 service providers offer layer 2 Ethernet VPN services in Europe, only nine offer VPLS service in Latin America. In Africa, the number falls to six. And while 22 service providers offer VPLS service in London, only five offer the same product in Mumbai.

Thats despite the fact that Ethernet VPN services generally cost less than MPLS IP VPN for capacity requirements above 50mbps, and do a better job of linking high-capacity headquarter sites and data centers. MPLS IP VPNs work better for connecting multiple sites with more modest capacity requirements. But dependence on local Ethernet access, and the relatively slow rollout of Ethernet across MPLS PoPs, means Ethernet VPNs arent yet available in as many cities as MPLS IP VPNs, TeleGeography said.

Globally, more enterprise users are replacing their legacy private line, frame relay and ATM wide-area networks with Ethernet VPLS and MPLS IP VPN services. Availability of technology, however, is determining organizations network choices.  

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