Who Needs Dynamic Ethernet Connectivity Services?

October 27, 2015

Vertical Systems Group is actively tracking the evolution from static wireline network connectivity to more versatile dynamic services. Hundreds of enterprises are already utilizing Dynamic Network Connectivity Services (DNCS) that enable customers to directly control their wide area network resources or cloud access on demand.

dncs4Today’s dynamic service offerings differ by functionality, geographic scope and target market. They may be API driven, utilize SDN (Software Defined Networking), NFV (Network Functions Virtualization), OpenFlow or other technologies.

Our latest research focuses specifically on how revenue-generating dynamic offerings will impact the Carrier Ethernet market – and when. Availability of operational dynamic services is relatively limited, so the spotlight is more on the supply-side than the demand-side of this emerging market.

In the U.S., the top dynamic Ethernet services for retail customers are AT&T’s Network on Demand and Level 3’s Dynamic Capacity. For U.S. wholesale Ethernet customers, Verizon Partner Solutions offers TLS Bandwidth on Demand. Telstra’s PEN offering provides dynamic Ethernet connectivity in Asia Pacific. A number of other Carrier Ethernet providers have dynamic service capabilities in development or in customer trials. However, most are still assessing who needs dynamic connectivity, the range of technology solutions for development, best practices for deployment and the impact on existing Ethernet services revenue.

Throughout the past year, the MEF has been researching how the Carrier Ethernet market may be transformed during the next several years. In conjunction with this effort, the MEF is conducting a survey of its membership jointly with Vertical Systems GroupThis Dynamic Network Connectivity Services Enabled By LSO, SDN & NFV survey covers a number of important questions:

  • What type of dynamic service capabilities are available now, and what is planned for future deployments?
  • What are the top customer purchase drivers for dynamic connectivity services?
  • How should dynamic Carrier Ethernet services be priced as compared to static services?
  • What are the major challenges constraining deployment of dynamic network services?
  • How important are LSO, SDN, NFV and MEF CE 2.0 as foundations for these offerings?

Results of the survey plus Vertical Systems Group’s associated research from executive interviews with DNCS providers will be presented at the MEF GEN15 networking event in November. We’ll provide a snapshot of key findings and share our outlook on this nascent market opportunity. MEF members will receive a summary report of the survey results.

And stay tuned for more! We’re working on additional in-depth research that will be available to subscribers of Vertical Systems Group’s ENS Research Programs. Follow @VerticalSys on Twitter to receive alerts on this research content. Contact us for more information.

Posted by Rosemary Cochran