Skip to main content

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.

Popular posts from this blog

The Billions Bet on Tentative AI Demand

Gartner's latest worldwide IT spending forecast exposes a trend every CIO has already felt in budget negotiations. Total spending will climb 14.2 percent in 2026, reaching $6.37 trillion. It seems that the IT infrastructure market is simply having a strong year. However, the more useful insight is how unevenly that growth is distributed. The Headline Number vs. The Real Story Data center systems and infrastructure as a service (IaaS) are absorbing capital at a pace several multiples faster than devices, communications services, and traditional IT services. This is not incremental growth spread across a healthy portfolio. It is a wholesale reallocation of enterprise technology budgets toward AI infrastructure, made on the expectation that demand for AI workloads will justify the outlay before that demand has been fully proven. Where the Money is Going Data center systems are forecast to grow 62.5 percent in 2026, that's up from 51.6 percent growth in 2025, reaching $822 billion....