While many companies are still using legacy technologies, such as ATM and frame relay, most plan on modernizing at least some of their locations within the next two years, according to a Current Analysis Inc. survey.
The survey, which was conducted among roughly 120 decision-makers directly involved in selecting corporate WAN services, found 44% of companies used frame relay, while 25% used ATM. Among frame-relay users, 75% said that they planned on switching to IP VPNs within the next two years, while 46% said they planned on switching to carrier Ethernet within the next two years.
Meanwhile, 80% of ATM users said they planned to switch to IP VPNs within the next two years, while 61% said they planned to switch to carrier Ethernet within the next two years.
"Incumbent service providers are challenged as more businesses demand IP and Ethernet services, yet many of their largest enterprise customers continue to operate on aging ATM and frame-relay networks," said Current Analysis analyst David Hold. "However, our survey indicates that the majority of those legacy users are ready to make the move to next-gen services."
The survey found the major reasons companies are deciding to switch over to next-generation WANs are the need for higher bandwidth, lower costs, and a desire for bundled voice, video and data services.
Overall, a majority of firms surveyed had already implemented next-generation WAN technology, as 68% reported using IP VPNs and 67% reported using carrier Ethernet.
The survey's sample tilted toward bigger companies, as roughly two-thirds of respondents were categorized as medium to large businesses, with 36% spending over $10 million per year on telecom services, and 31% spending between $1 million and $10 million per year. Read more....
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