The increase of Ethernet
The market for Ethernet in the UK is now worth £600m and growing. The demand for Ethernet is now seen in all businesses and there’s an increasing desire for bandwidth and cloud and hosted applications. Now is the time to capitalise on this demand.
What our research has found
In recent years, Ethernet has been one of the key fast growth product markets, driven by large business and public sector demands. Replacing legacy infrastructure with a more flexible service has been a key feature of this growth agenda. This is now changing as 10% of the UK market serves SMEs who demand improvement in business processes and the adoption of new applications.
SMEs are now reviewing infrastructure costs and an OFCOM survey on business connectivity for organisations with 10+ people demonstrate the scale of activity. 90% of businesses with 10+ employees has reviewed business connectivity services within the last three years, and 60% had made changes as a result of the review – most likely changing supplier.
When businesses were asked about the key driver for spend on connectivity services, the top answer was ‘more bandwidth’ but there is a growth in demand for voice, video, storage and other cloud services.
The biggest factor seen by many is enabling cloud technology. Research for the Cloud Industry Forum (CIF) shows that 78% of UK businesses use at least one cloud application, but this will rise rapidly to 90% by the end of 2015.
Businesses are looking for more than just one broadband service – they want converged voice and video services, fast upload and download speeds and a range of business applications. The range of access options provided by Ethernet over fibre and Ethernet over copper (EFM) and Generic Ethernet Access Fibre to the Cabinet (GEA FTTC) means that the communications provider can offer the best solutions to their customers. EFM and GEA FTTC are ideal to start selling into SMEs up and down the country so that they can achieve their goals and satisfy the needs of their organisation.
Key benefits of Ethernet for channel providers
Building your data services portfolio. Growing new revenues and higher margins in data services to attack the converged services market. Longer term contracts enable time to get to know the customer and plan their network connectivity ahead.
Attracting larger and more multi-site customers. Being in the mix and winning larger deals with the opportunity to provide the right connectivity to the right sites, coupled with the right solutions and cloud services.
Cross-selling potential. Ethernet is ideal for addressing the need for converged voice and video growth, especially among SMEs, helping to create more revenue-generating opportunities.
Key benefits of Ethernet for businesses
Cost-efficiency and productivity. Advanced connectivity can be delivered to customers without major investment.
Availability, reliability and resilience. Business-grade services with a range of Ethernet access options.
Ideal replacement. Bridges the solution between broadband and high-end for business class connectivity and is a great substitute for older SDSL, ADSL and private circuits.
Enabler for new applications. Access to the world of cloud services needs reliable, secure, uncontended connectivity.