Apart from its relatively late entry, at least in a substantial
way, Ethernet??™s transition to becoming a serious contender as a Service Provider
offering in the MAN, and WAN, requires it to support numerous other capabilities
that are essential to competing with existing solutions such as ATM and Frame Relay.
Figure 1.18 illustrates the spending of U.S. enterprises for broadband services today;
Ethernet accounts for only a paltry 3 percent of spending. In order to achieve to LANlike
dominance in the MAN and WAN, Ethernet must grow at a near exponential rate
53 CAGR is essentially the year over year growth over a period of time.
Figure 1.17 Reducing customer churn
$5,000,000
Year 5 - Service Provider A has
2.6 times More Revenue than B!
Customer Retention Comparison
$7,000,000
$6,000,000
$2,000,000
$1,000,000
$-
1 2 3 4 5
Year
Service Provider A Service Provider B
40 Chapter 1
over the next several years. And it must address the challenges and shortcomings that
it faces in that quest.
Barriers to Deployment of Ethernet Beyond the LAN
Notwithstanding the promise of Ethernet beyond the LAN, there are still quite a few
challenges that need to be addressed before it can credibly become a dominant service.
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