So how big is ethernet going to be?
The ethernet services market today is estimated at US$20 billion a year and several analysts predict the market will grow to US$40 billion worldwide within five years. Also, many analysts predict multi-point services to move from being less than one per cent of a service providers total number of circuits to 40 per cent of a service providers portfolio in five years.
Our roadmap is focused on broadening our multi-point service options so we can provide the richest multi-point service in the market. We are also working on a burstability service that will allow a customer to burst one times above their committed information rate (CIR) on a usage based pricing model.
We see ethernet services continuing to be flexible and offer better value in the market. We expect multi-point services and features to improve since the market is expected to shift more revenue into that market segment. Ethernet will remain a standalone service within the Tata Communications portfolio but we are working on using ethernet with other services to deliver a more complete network solution to our customers.
What are you offering to your customers?
Tata Communications offers a wide variety of ethernet services on a global scale. We have two main service offerings: 1) Dedicated Ethernet and 2) Priority Ethernet. In addition to these product lines, we offer 10 Gig Ethernet to 25 cities all over the globe and Priority Stretch, a best effort, usage based service.
Dedicated Ethernet offers service for point to point, point to multi-point and multi-point. This service offers a transparent pipe, deterministic protection, a single high class of service and has the ability to handle frame sizes up to 9000 bytes. Priority Ethernet offers mesh protection, four classes of service and point to point, point to multi-point and multi-point connectivity.
Is it difficult to move to ethernet?
For clients to move to ethernet, it is usually less expensive than other technologies. The main reason is that ethernet ports are extremely common, are the lowest price ports on the market and often exist in most equipment. I have heard countless stories of customers saving hundreds of thousands of dollars using 10 Gig Lan Phy Ethernet ports instead of 10 Gig Layer 1 ports.
Ethernet is also well-known in most IT departments within a company. Ethernet is used in 95 per cent of the LANs operated by companies. Ethernet is a basic protocol that every IT specialist learns. As a result, finding people within organisations that understand ethernet is quite easy.
Finally, the flexibility of ethernet allows a company to save money using Ethernet over Layer 1 circuits. With less expensive ports, an internal knowledge base and low-priced circuits, moving to ethernet is quite easy within most organisations. Tata Communications offers our customers a wide selection of services within our ethernet portfolio. This allows our customers to get the best service to fit their needs at a market price. Most companies use their networks to generate revenue.
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