Advising on the commercial impact of technology and
    market changes in telecoms, software and IT services

Switching and Routing

MPLS (multiprotocol label switching) is now a platform supporting layer 3 VPNs, layer 2 VPNs, and transport of legacy services such as Frame Relay, ATM, and private line. The IP/MPLS router is now a multiprotocol switching and routing platform that is moving quickly from replacing ATM switches at the core, to replacing ATM switches at the edge.

The ability of a IP/MPLS router platform to do so much is creating a highly fragmented market and enabling new growth areas such as Ethernet transport and services, wireless aggregation, and IPTV infrastructure. As $2 billion per year of service provider spending on ATM/multiservice switches starts to transfer more rapidly between 2006 and 2008 to IP/MPLS routers, there is the potential for market share changes to be dramatic. This opportunity is driven by the movement of DSLAMs from ATM to Ethernet, of wireless networks from 2G to 3G and 4G, and the movement of Frame Relay to Ethernet and IP VPN services. These changes represent opportunity for new entrants and exposure for incumbent equipment vendors. These changes also have many network architecture implications.

At the same time as MPLS is experiencing unprecedented success, connection oriented Ethernet (traffic engineering for provider backbone bridging) and T-MPLS (transport MPLS) threaten to fragment the packet transport layer. These new approaches to building packet transport networks will provide an array of choices and new dynamics in the market.

Ovum RHK's Switching and Routing service examines the underlying switching and routing technologies and business issues that are reshaping network infrastructure and services.

Business Assessment

Ovum RHK addresses the following key business issues:

• End-user service demand
• Network architecture economics
• Operations implications of architecture alternatives
• Drivers/competitive issues in different operator segments.

Technical Analysis

Ovum RHK addresses the following key technical issues:

• Important trends and challenges
• Network architecture
• Systems architecture
• Role of competing technologies such as SONET/SDH, Ethernet, and IP/MPLS
• VPN alternatives.

Research Activities

Ovum RHK analysts conduct the following research and analysis:

• Market forecast and analysis based on current market conditions and analysis of long-term fundamental trends
• Market share and analysis based on vendor sales and service provider buying patterns
• Interviews with major service providers in North America, EMEA, and Asia-Pacific to determine their plans for expanding their data networks
• Analysis of key applications driving the growth of data networks and network architectures to determine which technologies will create new equipment opportunities
• Market opportunity analysis to determine who the winners and the losers will be
• Ongoing tracking of new developments in the vendor community, including new products, acquisitions and mergers, and significant new orders

Analyst Team

Mark Seery: Vice President, Switching and Routing

Mark Seery has 22 years of industry experience, covering both private and public networks, in the areas of network operations, software development, product management, and product marketing, with an interest in network architectures for all aspects of public networks. Previous to Ovum RHK, Mark spent 10 years in senior product management/marketing roles for a range of start-ups and established companies, including Valo Systems, Bravara Communications, BroadBand Technologies/Pliant Systems, Cisco Systems, Wandel & Goltermann, and NetEdge Systems. Prior to Mark's product marketing career, he consulted to Xylan Networks, WilTel, AT&T/Bell Labs, Mobil Oil, and Prudential Insurance. Mark started his career in the financial sector designing and operating networks for companies such as Westpac Bank and A.G.C.

Tanya Harris, Senior Analyst, Forecasting and Analysis

Tanya Harris is responsible for market share data collection and analysis across Ovum RHK's Optical Networks, Switching and Routing, Communications Semiconductor, Broadband Network Strategies, and Optical Components services. Prior to joining Ovum RHK, Tanya held the positions of senior forecasting analyst and manager of pricing analysis with Corning Inc. Tanya received a B.S. in Mechanical Engineering from Rensselaer Polytechnic Institute.

Takehito Ichida: Analyst

Takehito Ichida brings six years of telecom industry research experience to Ovum RHK. Based in Tokyo, his emphasis is on the Japanese market. Recent work has included market entry studies for U.S. and European and research into metro area networks through Asia-Pacific. Prior to joining Ovum RHK, Takehito worked for a Japanese market research company specializing in the electronics industries. While there, Takehito's work included competitive analyses of technology and system pricing, as well as network and technology planning. Previously, he worked for NTT and its subsidiaries and research institutes.