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Home / India News / 2007 / March / March 12, 2007
Globalization and Expansion by Multinational Corporations Driving the Demand for Enterprise WAN Services

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Globalization and Expansion by Multinational Corporations Driving the Demand for Enterprise WAN Services

Mumbai, Maharashtra, India

The Global enterprise wide area network (WAN) services markets continue to record strong growth, particularly as a result of multinational companies expanding their international presence. Rapid migration from legacy services such as asynchronous transfer mode (ATM), frame relay (FR) and private line continues, driven by both price and feature functionality, with enterprises moving to multi-protocol label switching (MPLS) -enabled networks. While pricing is extremely competitive, providers including network operators, virtual network operators (VNOs) and integrators/outsourcers are delivering value-added services to enhance WAN services offerings.

New analysis from Frost & Sullivan (www.ICT.frost.com), Global Enterprise WAN Services Markets, reveals that revenues in this market totaled $ 17.7 billion in 2005, and is likely to reach $ 40.7 billion in 2013.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Global enterprise WANs markets, then send an e-mail to Ravinder Kaur, Corporate Communications, at ravinder.kaur@frost.com with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

"Globalization trends are spurring growth among global enterprise WAN services as multinational corporations expanding their operations to additional countries and regions worldwide, driving the need for additional telecommunications connectivity between sites," notes Frost & Sullivan Senior Analyst Maria Zeppetella. "Global enterprise WAN services link these growing firms with data, voice and video connectivity, while managing their networks and delivering business applications and other value-added services."

This trend, as well as the desire to converge data, voice and video networks onto an MPLS -enabled network will drive the adoption of MPLS-IP VPN and virtual private LAN service (VPLS)-based Ethernet. Steady migration from legacy services such as ATM, FR and international private line to newer technologies will also continue as enterprises seek more bandwidth, convergence, better management and increasing value-added services for their enterprise WAN expenditures.

However, with intense price competition and a large number of competitors, profitability issues are likely to remain a major challenge for market participants. Although last year's consolidation among providers had promised pricing stability, little of it is seen to date. Surprisingly there are still too many providers offering the same commoditized services.

"The global enterprise WAN services market is very competitive in terms of pricing, breadth of services offered, and number of providers offering similar services," explains Zeppetella. "Pricing for global WAN services remains low with some signs of stability during this year, yet overall pricing has not improved as expected following the acquisitions in this market."

Considering the commoditization of WAN services with high pricing pressures and little differentiation, providers must rely upon other value-added services. Hence, providers are increasingly differentiating their offerings based on value-added services, management, and maintenance, to obtain new customers and retain existing customers.

Global Enterprise WAN Services Markets is part of the Communications Services Subscription, which also includes research in the following markets: North American metro Ethernet services, North American wholesale SONET and wholesale wireline providers and wireless backhaul - challenges to the revenue opportunity. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership service, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

Global Enterprise WAN Services Markets
F816-63

Ravinder Kaur, Corporate Communications - South Asia & Middle East, Frost & Sullivan, +91 (044) 4204 4515 ravinder.kaur@frost.com

Mireya Castilla, Corporate Communications - North America, Frost & Sullivan, +1 210 247 3830 mireya.castilla@frost.com

Source: Frost & Sullivan (Business Wire India)

Press release presented here is sourced from the Source mentioned above and is provided on as-is basis. Please contact the Company / Source directly for any further information in regard to this release. This website will be unable to assist you in regard to the accuracy or correctness of information in this release.

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