Research Overview
Rising Need for Cost-Effective Solutions Urges Carriers to Shift from
Legacy Networks
Internet protocol virtual private networks (IP VPNs) and multi protocol label
switching (MPLS) based networks have been creating quite a buzz in the
asynchronous transfer mode (ATM) and frame relay market. Capable of providing
phenomenal cost savings, these applications have encouraged a number of
enterprises to migrate from their legacy networks. As IP-based applications
continue to find rapid acceptance among major corporations, both international
and U.S. carriers are challenged to keep pace. Even as carriers contend with
insufficient management and technical expertise, mounting security concerns, and
lack of trouble shooting tools, the ever-increasing demand for next generation
networks is expected to lure investors.
This research from Frost & Sullivan evaluates the current and future
prospects of the ATM and frame relay market in two main sectors: wholesale ATM
and wholesale frame relay. It reviews the key telecommunications requirements in
the United States, and evaluates the competitive profiles of leading
participants. Additionally, it offers a comprehensive insight into the drivers
and restraints affecting the market and outlines strategies that are anticipated
to enable stakeholders to maximize their profits.
Providing Clear Migration Paths and Translation Services Expected to Drive
Adoption Rates
There is a growing demand among customers for carriers capable of seamlessly
transcending into next generation networks. Increasingly, carriers are being
challenged to provide translation services that enable applications to
"talk" with each other. This is likely to ensure the smooth transition
of legacy applications to IP- and MPLS-based applications. Major network
backbones are likely to be run on IP and MPLS, as ATM and frame relay are used
for access to local networks and as edge technologies.
"Carriers need to make a conscious effort to invest in technologies that
meet customer requirements," says the analyst. "Companies that are
sensitive to customer demands are likely to prove successful."
Customers Focus on the Value Proposition and Return on Investments of
Emerging Technologies
The large investments required to replace older equipment with IP-based
networks has proved to be a major challenge to most carrier companies. As
companies emerge from the dotcom bust and the economic downturn, capital
expenditures are undergoing intense scrutiny. "With network planners being
expected to justify each dollar spent, the uptake of newer technologies is
likely to take a backseat," notes the analyst. "Since they have
invested billions of dollars into these networks, most carriers are reluctant to
make additional investments and prefer to continue using older, proven
technologies."
Yet another factor hindering adoption is the difficulty in getting trained
professionals. There are very few professionals with a thorough working
knowledge of the latest technologies, and training them is likely to be an
expensive proposition for most carriers.
Frost & Sullivan Growth Partnership Service
Based on extensive and in-depth research, real-world consulting work, and new
theories tested in hundreds of companies across many industries, Frost &
Sullivan has evolved its Growth Partnership Services (GPS) program that provides
established and emerging firms with powerful growth visions. Moving beyond token
mission statements, GPS provides an actionable vision to growth consulting
partners by illustrating how key intelligence and strategic research based on
defined goals can guide day-to-day behavior and overall company direction. The
foundation of Frost & Sullivan's GPS includes:
- Assisting companies to reach their full potential in the core business
- Providing growth strategies to help companies expand into related
businesses
- Preemptively redefining the core business during market turbulence
- Applying the Frost & Sullivan framework to identify and address common
mistakes resulting from misaligned corporate strategies
- Recommending growth management strategies through continuous partnership
To maximize the potential for growth within a firm�fs internal and external
environment, Frost & Sullivan consultants can facilitate the creation of
strategic programs that deliver improved market success. Frost &
Sullivan�fs strengths lie in combining strategic understanding with market
expertise and applying these with absolute commitment to its clients�f growth.
1 ATM AND FRAME RELAY SERVICES: OPPORTUNITIES FOR THE WIDE AREA NETWORKING
MARKETS
- Market Overview
- Introduction
- Executive Summary
- Market Engineering Measurements
- Market Definitions
- Summary of Major Findings
- Key Challenges
- Key Drivers & Restraints
- Market Sizing
- Competitive Structure
- Market Trends
- Impact of IP-VPN on ATM & Frame Relay Services
- Key Telecom Needs for ATM & Frame Relay Services Customers
- Strategic Recommendations & Best Practices Awards
- Strategic Recommendations
- Best Practices Awards
