Ethernet is In Demand, but Its Availability is Hindering Adoption Rates

These days, an increasing amount of large businesses around the globe are leaning towards employing MPLS IP VPN and Ethernet VPLS services. However while the numbers for MPLS VPN are beginning to soar, a lack of availability is keeping Ethernet adoption rates low.

According to TeleGeography, a telecommunications market consulting and research firm that has provided guidance to thousands of governments, investors, equipment makers and providers since 1989, new research indicates that Ethernet deployment lags far behind its MPLS VPN counterparts. This is due, in part, to the fact that out of the 63 international service providers TeleGeography studied, less than one-third offer Ethernet VPLS while over half provide MPLS VPN service in 10 or more countries.

Ethernet VPN and MPLS VPN service availability varies by region. TeleGeography detected 19 IP VPN providers in Latin America and Africa, 31 in the US and Canada, 34 in Asia, and 39 in Europe. And in spite of Ethernet VPN services being not as commonly available in all of those locations, the deficiency is most predominantly pronounced in budding markets. Currently, there are 32 service providers offering later 2 Ethernet VPN solutions in Europe, however only 9 offer VPLS solutions in Latin America. That number drops to 6 in Africa, and although there are 22 service providers offering VPLS solutions in London, only 5 offer the same solution in Mumbai.

TeleGeography went on to say that, generally speaking, MPLS IP VPN services work better for linking multiple sites that require a more modest capacity. Ethernet VPN services, on the other hand, perform better with connecting high-capacity data center and headquarter locations, and typically cost less than MPLS IP VPN for capacity requirements over 50Mb per second. That being said, the reason Ethernet VPNs are not as readily obtainable as MPLS IP VPNs in many cities is because of the comparatively slow rollout of Ethernet over MPLS Points-of-Presence (POPs) and the reliance on local Ethernet access.

Worldwide, a growing number of large businesses are exchanging their ATM Wide Area Networks (WANs), frame relay, and legacy private lines with MPLS IP VPN and Ethernet VPLS solutions; however it's the availability of technology that is controlling business' network decisions.

If you are interested in finding the ideal Ethernet or MPLS solution for your business's unique needs and location, give one of our professional account managers a call today!