The Growing Demand For MPLS Services
Information and excellent connectivity is as vital as communication in any business. That is why businesses only choose to use networks that can provide and do the same things. Companies providing network services are offering a lot of options that customers can choose from. Among these options is the MPLS network service.
From a study conducted by Infonetics Research, it has been shown that MPLS services are continuously growing worldwide. This was the headline stated in the report made on the 2012 Ethernet & IP MPLS VPN Services. The report focused on analyzing and forecasting the market for both the unmanaged and managed layer two and three IP MPLS VPN services along with the retail and wholesale Ethernet services. In the report, it was found that the demand for both Ethernet and MPLS VPN services is expected to grow in the following years.
According to the co-founder and Infonetics Research’s principal analyst, Michael Howard, both services are still expected to grow in the years to come. That is to be expected even with the slowdown seen on the services in Europe last 2011 and 2012. It was projected that when 2016 comes, both services will generate a total of $81 billion globally.
Howard also added that the shift from ATM, leased line and frame relay services to IP and Ethernet services is quickly ongoing. That is the exact thing that happens as businesses become more focused on remaining competitive in the market. That becomes more the case especially as today’s world becomes more interconnected and video, cloud and mobile-oriented. As it continues to happen, there will come a time in the future when usage of frame relay and ATM will no longer be the option. As for the usage of private leased lines, it is stated in the report that it will still be around for a little longer.
Based on the findings shown in the report, it was revealed that the revenue of the global MPLS IP VPN and Ethernet service grew up to 13% in 2011. That is equivalent to more than $50 billion. Its growth will be lead by the rapid increase in data traffic, the need to reduce costs and because of cloud services.
As the years go on, growth in the services will just keep on doing so. Included in the report was a statement of the researchers that Asia Pacific is predicted to overtake the EMEA and become the leading region offering the IP MPLS VPN services. That prediction is expected to take place within the next year.
The same region is already said to be the leading provider of Ethernet services. But considering other regions, it was stated in the report that Asia will still remain as the leader in providing both Ethernet and IP MPLS VPN services in the market. To be specific, India and China will remain the front runners within the field.
The introduction of this new technology has now truly shown a new era in the network and communication industry. With all the benefits that the service can give, it is not surprising that such information is predicted in the report.