Monday, July 23, 2012

ATM and Frame Relay Gone by 2015

“By 2015, ATM and frame relay will virtually vanish, while private leased lines will be around a bit longer,” says  Michael Howard, co-founder and principal analyst of Infonetics Research. 


In large part, that is because replacement services such as Ethernet and IP VPNs are taking the place of frame relay and ATM.  “Despite some slowdown in Europe in 2011 and 2012, we see solid growth ahead for both IP MPLS VPNs and Ethernet services, together topping $81 billion worldwide by 2016,” Howard says. 


Global Ethernet and MPLS IP VPN service revenue grew a combined 13 percent in 2011 to just over $50 billion, fueled by surging data traffic, cloud services, and cost-cutting initiatives, Infonetics says.

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