CONNECTIVITY REPORT
www.comms-dealer.com
SME market ripe for Ethe
Ethernet has seen impressive growth
and is pushing down into the SME
sector. We examine the sizeable
opportunity that Ethernet offers
comms resellers, and look at how
a growing number of SMEs are
benefiting from Ethernet solutions?
thernet is forecast This trend is a hot 1000Mbps, is scalable, basic broadband increase the bandwidth
E
to be the fastest opportunity for comms simple to work with and to next generation and their revenues as
growing access dealers, notes McLeod. particularly resilient with network services, which their customer grow,” said
technology “Comms Dealers are ideally standard technically valid encompasses its Ethernet Andrew Saunders, Head of
between now and 2012 positioned to capture SLAs of 99.9 per cent portfolio. “Through Product Management &
with a CAGR of 16 per this business as part of availability. So if any dealer events and product Marketing at Zen Internet.
cent for the next two the wider solution and to is attempting to deliver a training we help our “Resellers can generate
years, according to further tie the customer in, communications platform partners fulfill the needs significant margin from the
Analysys Research. The realise improved margins – hosted or otherwise – analysis part of the sales connectivity sale alone
key factor driving this and maintain control of across a WAN/Internet link, process. Technical pre- but can also introduce
increased demand for the deal,” he added. then Ethernet will ensure sales resource and other complimentary services to
Ethernet access is simply “Ethernet access is typically maximum performance,” business development their customers. These may
the growing requirement sold on a three-year term. said McLeod. people are on tap to work include the management
demand for bandwidth. So while a dealer may be with the partner and end of the customer’s router,
As companies continue to more often limited to 12 With the explosive growth customer,” said Sinnott. a managed security
embrace cloud and hosted month contracts on their of real-time low latency service or a high value IP
services their reliance and core products such as services being deployed He noted that Timico has VPN solution that includes
demand for bandwidth service subscription and over IP, the need for high provisioned more leased Ethernet connectivity at
will only continue to grow. maintenance, they can quality, resilient bandwidth lines in the past six months multiple sites plus a range
guarantee an extended becomes as important for than since it started of complimentary services.”
Backbone Connect relationship by tying in SMEs as it is for mid-market trading in 2004. “This has
has seen an increasing an Ethernet service as corporate clients. “Without been driven by the huge Ethernet is the enabler
appetite from end users, part of the deal.” doubt the reliance on uptake which we are now for business grade IP
particularly SMEs, to IP connectivity is key for seeing in both the direct applications. It’s flexible
improve their bandwidth. Ethernet services also business,” commented and indirect space. We bandwidth feature means
Much of this increase in provide a means for Iain Sinnott, Head of are very excited about that it can easily adapt
demand is a direct result of additional revenue and Indirect Sales at Timico. the opportunities ahead if businesses want to
the cloud and the industry’s profit. Channel partners “Applications are moving as this product becomes introduce new services
focus on IP, observes can realise up to 20- into the cloud, voice and more channel orientated that demand more
David McLeod, Director 30 percentage points SIP adoption over the IP and finds a price point that bandwidth. “As Ethernet is
of Marketing at Backbone when reselling Backbone network is more prevalent represents tremendous not contended at the local
Connect. “As more services Connect Ethernet products. and these demands value,” he added. exchange it also offers
start to be delivered from As well as good margins, on the infrastructure to guaranteed throughput
outside the office, such there are other strong offer secure, robust, high Reductions in Ethernet at all times of day, which
as hosted VoIP and video arguments for comms performing connections pricing means it is now can ensure a more
platforms, together with dealers to fully embrace will continue to drive an affordable solution for reliable connection than a
an increase in demand Ethernet connectivity, demand for EFM and SME customers. It offers typical shared broadband
for Internet access and but perhaps the most Ethernet services.” impressive scalability and service,” added Saunders.
other data services, compelling is the impact the flexibility to increase “It also makes it ideal for
customers are beginning and difference the Timico’s indirect channel bandwidth at short the delivery of SIP Trunking.
to look more closely at technology makes to strategy has very much notice right up to 1Gbps. When incorporated into
the bandwidth available their ability to deliver their been to take its partners “Resellers can sign Ethernet an IP VPN, QoS features
and the reliability of their own products. “Ethernet and customers from customers up to a solution using MPLS technology
access to the outside access offers bandwidths traditional services such that meets their needs ensure guaranteed end-
world,” said McLeod. of between 10Mbps and as fixed line, mobile, today and then easily to-end performance for
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46 COMMS DEALER MARCH 2010 www.comms-dealer.com
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