Skip to main content

Traditional Wide-Area Data has Flat Growth

In 2008, U.S. Wide Area Network (WAN) wireline data services are projected to see an overall increase of 2 percent from 2007, with the enterprise segment generating 59 percent of revenues, according to the latest market study by In-Stat.

Looking forward, moderate growth is also projected to continue through 2012. During this period, this market will go through a significant transition as U.S. organizations move from legacy services (frame relay, private line and ATM) to Next Generation Network (NGN) services (IP/MPLS and Ethernet services).

NGN services represent the growth area -- although progressing slowly -- in WAN wireline data services for businesses. These services are increasingly utilized by organizations in building their corporate networking infrastructure.

Combined, these services provide the building blocks necessary in addressing the progressively more demanding connectivity requirements faced by today's businesses. These include:

Support for convergence of voice/data/video; adaptive routing capabilities; extensive reach; traffic engineering with QoS; high capacity/availability; cost effective any-to-any connectivity; wide range of access methods; and the ability to more easily integrate with business processes.

I believe that it's that last issue, the task of alignment between ICT investment and business objectives, where these integration activities seems to stall in most organizations. That said, those CIOs and IT managers who can master this process will reap the benefits.

Currently, legacy services generate almost twice the revenue of NGN services. But looking forward, In-Stat anticipates this to dramatically change over the next 5 years, projecting that by 2012, the revenue allocation for these services will essentially reverse. This transition will vary by size of business segment, with enterprise businesses leading the transition.

Popular posts from this blog

The Evolution of Personal Computing in 2025

The personal computing device market continues to demonstrate remarkable resilience despite recent fluctuations. According to the latest worldwide market study by International Data Corporation (IDC), global PC shipments are projected to reach 273 million units in 2025—a modest but significant 3.7 percent increase over the previous year. This growth reflects the market's adaptation to post-pandemic realities and evolving technology needs across the globe. Personal Computing Market Development While COVID-19 initially triggered unprecedented demand for computing devices during the shift to remote work and online education, we now see a more measured growth pattern. IDC has slightly adjusted its projections downward, indicating a market growing steadily rather than explosively. "In light of so many challenges around the world, Japan is a much-needed source of double-digit growth this year. Enterprises there as well as SMBs have been quickly replacing PCs in advance of the Window...