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Transitioning to the Next-Generation Services

Legacy telecom services -- like frame relay, leased line, and ATM -- over the wide area network (WAN) continue to provide the U.S. professional services, finance and insurance, government, and healthcare vertical segments with a reliable, manageable communications infrastructure.

However, it is evident that these sectors see the benefit to transitioning to next-generation (NGN) services, according to the latest market study by In-Stat. NGN services are defined as IP/MPLS and Ethernet services, the high-tech market research firm says.

"Although these vertical industries are seeking similar goals, the individual motivations and concerns over migration vary by priority and importance," says Steve Hansen, In-Stat analyst.

"From the perspective of the service provider, understanding the migration profiles of each specific vertical can provide insight into how services should be packaged and marketed to that specific sector."

The In-Stat research covers the U.S. market for NGN services in four vertical market sectors: professional services, finance and insurance, government, and healthcare.

It provides analysis of an In-Stat survey of U.S. businesses regarding NGN services conducted in March 2008. It includes profiles of each market sector, outlining their motivations for migrating to NGN services and their concerns regarding migration.

In-Stat's market study found the following:

- According to an In-Stat survey, legacy services are still in use in over half of the U.S. organizations within the four vertical segments analyzed (professional services, finance/insurance, healthcare, and government).

- Over 50 percent of these current legacy services users are migrating, or plan to migrate, some/all of these services to other services, such as IP/MPLS and Ethernet.

- NGN connectivity has to be provided in a manner that protects corporate data, reduces overall cost, can service a remote/mobile workforce, and can be recovered after a disaster.

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