Business Ethernet services forecast to reach $44bn by 2014

Date: Wed, 10/12/2011 - 19:44 Source: MEF press department

MEF celebrates its 10th anniversary with outstanding results for membership, certification and market growth
Business Ethernet services forecast to reach $44bn by 2014 Kevin Vachon, MEF COO, at NetEvents EMEA Press and Analyst Summit Rome 2011

Speaking at the NetEvents 2011 EMEA Press Summit, MEF presented an impressive set of market data and predictions for further growth in Carrier Ethernet (CE) equipment and services. Having just celebrated its 10th anniversary, the MEF continues to gain momentum through its increasing membership and other initiatives, including an expansion of its successful certification program to include MEF – CECP’s – Carrier Ethernet Certified Professionals  important new standards wok in the areas of access services and 4G mobile backhaul. MEF’s strategy for fully enabling Carrier Ethernet to support Private Cloud Computing also forms a major component of MEF’s current work plans.
MEF Global Marketing Co-chair, Phil Tilley quoted Vertical Systems Group’s confirmation that the worldwide market for Business Ethernet services is on target to reach $44.3B by 2015 with double-digit global growth despite recent economic uncertainty. Vertical also noted that 2011 marks two key tipping points in the Carrier Ethernet market. Firstly, that Ethernet access bandwidth has for the first time exceeded aggregate legacy bandwidth in the U.S. boosted by a tenfold surge in the past five years. Secondly, that the demand for higher speed Ethernet access at rates up to 10 or more Gbps is now taking off, while business Ethernet is now the fastest growing strategic wireline data product for Service Providers throughout the world.
Focusing particularly on CE equipment sales, IDC data predicts a $37.5Bn market by 2015, with Service Provider investment in CE outpacing all other telecom capex, driven especially by the move to IP packet networks and growing traffic from consumer, business, and mobile backhaul networks, with a steady growth in video. Ethernet now dominates spending on mobile backhaul, amounting to 89% of total in 2010 rising to 98% by 2015. In 2009 only 47% of operators were anticipating an all-IP strategy and the figure has now risen to nearly 80%.
In keeping with the NetEvents Summit’s Cloud theme, Kevin Vachon, MEF COO quoted Frost & Sullivan saying: “Cloud networking – both to enable Cloud services and to provide access to them – is a significant market opportunity that will continue to fuel Service Provider and Enterprise adoption of Ethernet services”. Supporting this opportunity, MEF is working in cooperation with other standards associations in developing educational materials for the use of Carrier Ethernet for Cloud and, more broadly, contemplating technical work to develop a more “Dynamic, Responsive Ethernet” with Cloud being the first major application.
He went on to outline the evolution of the MEF’s popular certification program through the addition of a Carrier Ethernet Professional Certificate to validate expertise, skills and knowledge of Carrier Ethernet technologies, standards, services and applications. The first level, MEF CECP, is already being awarded to individuals on the basis of an examination covering the fundamentals of Carrier Ethernet services, providing a widely recognized benchmark for customer credibility and career advancement. He summed up the program:
Tilley and Vachon also noted that MEF is on track with important technical and educational work that will enable mobile operators to more easily implement MEF’s widely adopted Class of Service models in wireless backhaul environments, to drive down mobile backhaul costs. Also, with work nearing completion on the next generation of MEF’s  Mobile Backhaul Implementation Agreement, mobile operators will be have the necessary technical guidance to now support both 3G and 4G
Building on the Global Interconnect Program of 2010/11 significantly, MEF will be introducing a new access service specification in early 2012 that will standardize wholesale access service implementations and enable shortened cycles for the sale  and provisioning of such services. This new area of work is seen as one of the final major puzzle pieces in support of Carrier Ethernet globalizarion.

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