Summary
The move from legacy data services like Frame Relay to IP-based wide-area network (WAN) services in Europe has now entered a phase of maturity, led by migration to IPsec VPNs for remote access, and followed closely by the adoption of multiprotocol label switching (MPLS) networks for site-to-site networking. Spend on carrier Ethernet services is growing, but Ethernet has not yet reached the tipping point of mass adoption compared with MPLS. Even MPLS adoption is by no means universal; 33% of European firms have no plans for MPLS, and three-quarters do not expect to reduce their expenditure on legacy data services in 2007. It seems that WAN services are not top of mind for CIOs; moving data to an IP network came fifth on their telecoms priority list, which was led by concerns about managing mobility. Europe continues its love affair with managed WAN services — half of the surveyed enterprises are already using them and another quarter may sign up to them during 2007.
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