Industry news

Enterprises 'increase ethernet use'

Hyper-connected businesses are increasingly looking to make use of ethernet technology to meet their high-bandwidth needs, it has been revealed.

According to communications solutions provider Nortel, enterprises can take greater advantage of hyper-connectivity by simplifying network operations and increasing capacity with enhanced- virtual private network (VPN) services.

Michael Howard, principal analyst and co-founder of Infonetics Research, said business spending on ethernet services is projected to generate $17 billion (£11.5 billion) in revenue during 2008 and outstrip the internet protocol multi-protocol label switching VPN services market in size.

"Ethernet is becoming the technology of choice for businesses that need to increase their network speed and capacity while keeping an eye on the bottom line," he added.

This week, studies carried out by IT industry analyst Nemertes indicated traffic is increasingly moving off the public internet onto paid or private overlay networks.

Research analyst with the group Ted Ritter claimed bandwidth limitations will ultimately hamper deployment of next-generation applications.