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APAC Enterprise Data Services Market to Reach US$27.20 Billion by 2017 Finds Frost & Sullivan - Migration from legacy technologies to IP/Ethernet shore up market revenues - IPCommunications.Frost.com
APAC Enterprise Data Services Market to Reach US$27.20 Billion by 2017 Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Kuala Lumpur, Malaysia, 2011/11/02 - Migration from legacy technologies to IP/Ethernet shore up market revenues - IPCommunications.Frost.com.

   
 
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Traditional technologies such as asynchronous transfer mode (ATM), frame relay and leased circuits are on their way out in most countries, making way for new-age services such as Internet Protocol (IP)/Ethernet. As the intensifying data center consolidation and wider adoption of cloud computing are significantly raising the bandwidth requirements in data centers, customers are increasingly opting for Ethernet for data center-to-data center connectivity and multi-protocol label switching IP virtual private network (MPLS IP VPN) for connecting to smaller branches.

The larger branches that are using MPLS are expected to gradually switch to Ethernet due to the need for faster throughput speeds.

New analysis from Frost & Sullivan (ipcommunications.frost.com), Asia Pacific Enterprise Data Services Market 2010, finds that the market earned revenues of US$13.71 billion in 2010 and estimates this to reach US$27.20 billion in 2017.

Although high-end MPLS circuits often compete against Ethernet services, they have not made a substantial dent on the former's revenue share. Once Ethernet nodes become more ubiquitous, customers will switch to Ethernet services for speeds in excess of 100 Mbps.

"Regulatory compliance will also have a considerable bearing on customers' purchase decisions," says Frost & Sullivan Research Analyst Mayank Kapoor. "The self-governing nature of Ethernet makes it particularly attractive for sectors such as financial services and government."

Although enterprise data services have the benefit of advanced technology, increasing competition and enterprise mobility have hampered their rapid uptake. Growing enterprise mobility has made IP security (IPSec) and secure socket layer (SSL) VPN attractive to small and medium businesses. The mobility factor compels enterprise users to leverage the Internet to connect to corporate networks, and this restrains the growth of private network services.

Further, high-speed broadband initiatives in countries such as Australia, Malaysia, New Zealand and Singapore are likely to accelerate the decline in wholesale prices, which will have a significant impact on the pricing of core data services such as MPLS IP VPN and carrier Ethernet.

"Nevertheless, market participants can take heart from the sound economic growth of the Asia Pacific," notes Kapoor. "With the region expected to be the growth engine for global economy, the enterprise data services market is expected to experience a compound annual growth rate of 10.3 per cent in the next seven years, largely powered by China and India."

This robust economic health is likely to attract large investments to the market and keep it buoyant.

If you are interested in more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your contact details.

Asia Pacific Enterprise Data Services Market 2010 is part of the Communications Services Growth Partnership Services program, which also includes research in the following markets: Asia Pacific Business Applications as a Service Market, Managed WAN Optimization Services, Asia Pacific Data Center Services Update, WAN Services Market and Broadband Services Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Asia Pacific Enterprise Data Services Market 2010 / P547

 
 
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APAC Enterprise Data Services Market to Reach US$27.20 Billion by 2017 Finds Frost & Sullivan

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