IP and Ethernet spending to overtake that of legacy systems

Business spending on legacy services will be overtaken by IP and Ethernet in 2010 as firms move towards next generation networks, In-Stat reports.

"Carriers continue to expand the capabilities of IP VPN and Ethernet services, making them an increasingly attractive alternative to legacy services such as Frame Relay and Private Line," said Steve Hansen, In-Stat analyst.

"Looking forward to 2010, these services will be the leading revenue generators in the enterprise segment."

In-Stat found that enterprises will spend $24.3 billion on wireline data services in the US in 2007.

It also said that legacy services (frame relay, private line, and ATM) currently account for majority of revenue but this will change over the next three years.

Posted on: 2007-04-27, in: Networking hardware, Telephony technology

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