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TMCNet: Heavy Reading Releases Ethernet Exchanges Report

[March 04, 2013]

Heavy Reading Releases Ethernet Exchanges Report

Mar 04, 2013 (Close-Up Media via COMTEX) -- Ethernet exchanges have come to market much slower than originally expected, but new prospects are emerging in new customer categories and modalities, according to the latest report from Heavy Reading Insider, a subscription research service from Heavy Reading.

According to a release, Ethernet Exchanges: A Market Concept Revisited examines the emergence of Ethernet exchanges, and their potential and promise in the market. It also touches on EE business models, new use cases and emerging applications. The report profiles four vendors in the market.

"Rapid development of the Ethernet services market by hundreds of providers worldwide left interconnectivity and interoperability central ongoing market issues as customers tried to connect beyond their own providers' coverage areas regionally, nationally and internationally," said Steve Koppman, research analyst with Heavy Reading Insider and author of the report. "The EEs that emerged in 2009-10 in response to these concerns were a trend that appears to much of the industry in 2013 to have promised much more than it delivered.

"They have, however, dramatically disappointed expectations in terms of take-up and business magnitude, though they appear to be growing again at this time. But data center-based players are already starting to grow into software, as well as diversifying their appeal by market segment. Both models are likely to expand as their appeals become increasingly manifest to a broadening array of market participants." Key findings: -Original EE providers have split into sharply contrasting business models of what they are providing and to which customer groups.

-Equinix and Telx continue with their data center-based EE model while shifting customer focus increasingly toward cloud and financial customers rather than carriers.

-CENX has shifted its focus to software development, primarily for wireless backhaul, and internal to carrier networks, which it still characterizes as squarely within its definition of the EE concept.

-Carriers still want crucially to maintain the attractions of their own services, while making them available ubiquitously beyond their service footprints.

Ethernet Exchanges: A Market Concept Revisited is available as part of an annual single-user subscription (12 issues) to Heavy Reading Insider. Individual reports are available (single-user license).

Heavy Reading is a research organization.

It is a division of UBM Tech.

Report information: heavyreading.com/insider ((Comments on this story may be sent to newsdesk@closeupmedia.com))

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