
Fear factor
By Ed Gubbins
May 23, 2005 4:50 PM
Service providers have been offering Ethernet data services for years, but the practice was long tainted with fear, as carriers fretted over the extent to which metro Ethernet service would cannibalize their profitable existing frame relay and ATM service.
As metro Ethernet services have spread, the fear of cannibals has given way to other phobias. In a recent Infonetics Research survey of 37 top-tier service providers in North America, "competition" was ranked the top concern surrounding Ethernet service, with about half of respondents listing it as a primary challenge (in fact, the next highest concern was eight points behind). Less than a third of respondents described cannibalization that way.
It's no surprise, then, to see a throng of equipment vendors trumpeting multiservice equipment at Supercomm that's suited for Ethernet services. Vendors such as Overture Networks and Ceterus Networks are introducing new circuit-bonding gear for Ethernet traffic. Anda Networks and Eastern Research are unveiling multiservice cross-connects. Tellabs and Ciena are introducing new multiservice equipment designed to ease the convergence of old and new data services. And the list goes on.
With the prospect of tackling metro Ethernet not nearly as scary as the prospect of not offering it, it's time for service providers to become much more intimate with Ethernet, pulling it into converged networks rather than relegating it to overlay systems and starting the complicated work of sorting through the management issues inherent in making Ethernet a carrier-class service.
Equipment vendors are already surrounding these issues from all sides. On the Supercomm show floor, plenty of vendors will be reaching out to service providers, offering to hold their hand through the next evolution in data services. See? It's not so scary after all.
E-mail me at egubbins@primediabusiness.com.
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