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More Migration from Legacy WAN to IP-NGN

According to In-Stat, legacy network services -- like frame relay, leased line and ATM -- over the wide area network (WAN) continue to provide U.S. businesses with a reliable, manageable communications infrastructure on which to operate.

However, Next Generation Network (NGN) services over the WAN are better equipped to provide the building blocks necessary in addressing the progressively more demanding connectivity requirements faced in today's business environment -- all size businesses are transitioning towards the IP-NGN model.

For purposes of In-Stat's study, NGN services are defined as IP/MPLS and Ethernet services.

Overall, all size of business segments have similar goals in moving from legacy to NGN services, but there are differences in motivations and concerns over migration that vary by size of business.

In-Stat latest market study included 810 respondents, of which approximately 90 percent were very knowledgeable or extremely knowledgeable in their organization's use of wide area network (WAN) services, and involved with the decision making, management, or implementation of WAN services for their respective organizations.

Respondents also worked in organizations which have a minimum of 2 business locations. Analysis of the results was conducted based upon the size of the organization. Size of businesses segmentation includes small businesses (50 - 99 employees), mid-sized business (100 – 999 employees), and enterprises (1,000+ employees).

In-Stat's market study findings include:

- When making WAN purchasing decisions in 2008, small and mid-sized business respondents indicate they are most driven by the need to improve network security, where as enterprise respondents indicate the need to reduce costs as the leading driver.

- Enterprises remain the largest users of legacy services (64 percent), followed closely by mid-sized businesses (62 percent), with small businesses being the more modest users (49 percent).

- Frame relay is the most widely deployed legacy service across all size of business segments.

- Enterprises will also lead the migration from legacy to NGN services, with 49 percent indicating that they are currently migrating or planning to migrate to other services such IP/MPLS or Ethernet. They were again followed closely by mid-sized businesses at 42 percent, with small businesses moving less aggressively at 35 percent.

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