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

How WLAN Transforms Industrial Automation

The industrial sector is on the eve of a wireless transformation, driven by an urgent demand for greater network capacity, reliability, and deterministic performance. Historically, manufacturers and mission-critical operations have relied on wired networks — favoring their predictability — because spectrum congestion in legacy 2.4GHz and 5GHz bands limited confidence in wireless for operational technology (OT) environments. However, with the introduction and rapid adoption of the 6GHz spectrum, compounded by significant advances in Wi-Fi standards, industrial facilities are now poised to embrace wireless LANs as the backbone for automation and digital innovation. Industrial WLAN Market Development Recent research from ABI Research forecasts that over 70 percent of industrial-grade wireless LAN access points (WLAN APs) shipped in 2030 will support the 6GHz band. This is a leap from 2 percent in 2023, highlighting a rapid and profound technological shift. The market for ruggedized indust...