Showing posts with label Vertical Systems. Show all posts
Showing posts with label Vertical Systems. Show all posts

Sunday, May 31, 2020

Vertical Systems Group: How will COVID-19 impact SD-WAN?

Following a triple-digit revenue increase in 2019 for U.S. Carrier Managed SD-WAN Services, the growth outlook for 2020 has been lowered to 17% due to the impact of COVID-19, according to ENS @SD-WAN research just released from Vertical Systems Group. Despite this market dip, the forecast shows measurable economic recovery during Q4 of this year, and a revenue rebound starting in 2021 that extends through 2024.

Vertical’s SD-WAN forecast incorporates government directives, macro-economic data, enterprise demand information and service provider feedback. Topline forecast assumptions are displayed in the timeline infographic shown above. Detailed timeline assumptions for this COVID-19 impact analysis are included in the latest ENS @SD-WAN research release, which covers projections through 2024 for U.S. revenue, billable sites installed and WAN connections.

Key 2020 Timeline Assumptions

  • January – February: The robust demand for managed SD-WAN services in 2019 continues into the first two months of 2020. New customer installations increase as orders from the previous year are fulfilled.
  • March – April: The COVID-19 pandemic emerges across the U.S., forcing business shutdowns and stay-at-home orders. Some planned SD-WAN implementations are deferred.
  • May – August: Gradual reopening of businesses proceeds subject to variable state-by-state guidelines. Some companies file for bankruptcy, particularly in hard hit verticals (e.g., retail, travel, etc.). The SD-WAN pipeline for new logo sales erodes.
  • September – October: Enterprises and suppliers adjust to new operations realities. An economic rebound begins to take hold.
  • November – December: Economic recovery gains momentum. SD-WAN sales increase and site installations accelerate.



https://www.verticalsystems.com/2020/05/28/statflash-sdwan-covid-2020/

Thursday, April 23, 2020

Vertical Systems Group's U.S. Carrier Managed SD-WAN LEADERBOARD

AT&T tops Vertical Systems Group's newly 2019 U.S. Carrier Managed SD-WAN Services LEADERBOARD. The following companies achieved a position on the benchmark (in rank order based on site share): AT&T, Hughes, Verizon, CenturyLink, Windstream, Aryaka and Comcast. These seven service providers each have two percent (2%) or more of installed and billable Carrier Managed SD-WAN customer sites in the U.S. as of year-end 2019.

“The U.S. managed SD-WAN market expanded rapidly in 2019 as backlogged orders from the prior year were fulfilled by key service providers,” said Rick Malone, principal of Vertical Systems Group. “While the duration and depth of the coronavirus economic collapse is unknown, we expect resiliency across bandwidth intensive VPN markets, but acute vulnerability for the SD-WAN networks supporting the retail and travel verticals.”

Five companies attained a Challenge Tier citation for 2019 (in alphabetical order): Fusion, GTT, Masergy, Meriplex and TPx. The Challenge Tier includes service providers with between one percent (1%) and two percent (2%) share of U.S. Carrier Managed SD-WAN sites.

Some highlights:

  • Billable U.S. installations of Carrier Managed SD-WAN Services increased 89% in 2019. As projected in our prior research, large businesses and enterprises are increasingly relying on service providers to help configure, implement and manage their SD-WAN deployments.
  • AT&T, Hughes and Verizon retained the top three LEADERBOARD positions for the second consecutive year.
  • There were several significant share shifts compared to the prior year results. CenturyLink advanced to fourth position, which dropped Windstream from fourth to fifth position. Comcast moved up to seventh position from eighth in 2018. Fusion dropped off the LEADERBOARD into the Challenge Tier for 2019.
  • Bigleaf and Sprint, which were both cited in the 2018 Challenge Tier, dropped into the 2019 Market Player tier.
  • Comcast is the only service provider on the U.S. LEADERBOARD that has attained MEF 3.0 SD-WAN Services certification. This market differentiator assures compliance with the MEF 70 global standard for SD-WAN managed services.
  • Five leading technologies enable the SD-WAN services offered by the 2019 U.S. Carrier Managed LEADERBOARD plus Challenge Tier providers – VMware by VeloCloud, Cisco vEdge (Viptela), Cisco Meraki MX, Fortinet and Versa. Additionally, several SD-WAN providers utilize their own internally developed technologies.
  • Versa is the only one of these suppliers that has achieved MEF 3.0 SD-WAN Technology certification to date.
  • Market Players include providers selling Carrier Managed SD-WAN services in the U.S. with site share below one percent (1%), including global network providers that manage U.S. customer sites. For 2019, the Market Player tier included the following companies (in alphabetical order): AireSpring, Bigleaf, BT, CBTS, Cincinnati Bell, Cogent, Colt, Consolidated Communications, Cox, DQE Communications, FirstLight, Frontier, Intelsat, MetTel, Neutrona, NTT, Orange Business, PCCW Global, PS Lightwave, RCN Business, SES, SDN Communications, Segra, SingTel, Spectrum Enterprise, Sprint, Syringa, T-Systems, Tata, Telefonica, Telia Carrier, Veracity Networks, Virgin Media Business, Vodafone, Zayo and others.

Vertical Systems Group defines a Carrier Managed SD-WAN Service as a carrier-grade offering for business customers that is managed by a network operator, utilizes an SDN architecture, enables dynamic customer edge site connectivity, and provides centralized network control and visibility end-to-end.

https://www.verticalsystems.com/2020/04/21/2019-us-sd-wan-leaderboard/

Monday, April 13, 2020

Vertical Systems: Fiber connections to commercial buildings in the U.S.

Availability of direct optical fiber connections to commercial sites is expanding across the U.S. and now more than one million commercial buildings and data centers now have on-net access to fiber-based network services, according to latest ENS @Fiber Plus research from Vertical Systems Group.

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Fiber lit buildings are strategic assets that provide competitive advantages such as faster and more profitable delivery of network services. Vertical Systems Group measures business fiber market leadership with annual Fiber LEADERBOARD benchmarks. Thirteen retail and wholesale providers attained a rank position on the 2019 U.S. Fiber Lit Buildings LEADERBOARD based on 10,000 or more on-net fiber lit commercial sites. Another twelve companies qualified for a citation on the 2019 Challenge Tier with between 2,000 and 9,999 lit buildings.

More...

https://www.verticalsystems.com/2020/04/07/statflash-fiber-2019/

Thursday, March 5, 2020

2019 U.S. Competitive Provider Ethernet LEADERBOARD

Cogent, Zayo, GTT and Sprint have achieved a position on the 2019 U.S. Competitive Provider Ethernet LEADERBOARD, according to Vertical Systems Group’s latest Competitive Provider LEADERBOARD, which ranks companies in order based on U.S. retail Ethernet port share for this segment.

To qualify for the 2019 U.S. Competitive Provider Ethernet LEADERBOARD, companies must have either a top rank or a Challenge Tier citation on the 2019 U.S. Carrier Ethernet LEADERBOARD.

Competitive Provider is one of three U.S. provider segments, along with the Incumbent Carrier and Cable MSO segments. This segment encompasses CLECs, regional and global providers, and specialized carriers selling Ethernet services in the U.S. market.


  • Cogent, Zayo, GTT and Sprint each qualify for a position based on their 2019 Challenge Tier citations.
  • For the third consecutive year, there were no Competitive Providers with a top rank on the 2019 U.S. Carrier Ethernet LEADERBOARD.
  • Other companies in the Competitive Provider segment include the following (in alphabetical order): American Telesis, BT Global Services, Consolidated Communications, Crown Castle Fiber, DQE Communications, Expedient, FiberLight, FirstLight, Fusion, Great Plains Communications, Logix Fiber Networks, LS Networks, Masergy, MegaPath, MetTel, NTT, Orange Business, Segra, Tata, Telstra, TPx, Unite Private Networks, US Signal and other competitive providers selling retail Ethernet services in the U.S.


https://www.verticalsystems.com/2020/03/04/2019-competitive-leaderboard/

Monday, February 24, 2020

Vertical Systems Group: 2019 U.S. Carrier Ethernet LEADERBOARD

CenturyLink and AT&T retain the top two rankings on Vertical Systems Group's newly published 2019 U.S. Carrier Ethernet LEADERBOARD.

Seven companies achieved a position on the 2019 U.S. Carrier Ethernet LEADERBOARD. The market leading companies are as follows (in rank order based on year-end 2019 retail port share): CenturyLink, AT&T, Spectrum Enterprise, Verizon, Comcast, Windstream and Cox. Service providers must have four percent (4%) or more of the U.S. Ethernet services market to qualify for a LEADERBOARD rank.

Six companies attained a 2019 Challenge Tier citation (in alphabetical order): Altice USA, Cogent, Frontier, GTT, Sprint and Zayo. The Challenge Tier includes providers with between 1% and 4% share of the U.S. retail Ethernet market.

"The base of U.S. Ethernet ports increased by 8.9 percent in 2019, buoyed by healthy demand for higher speed access to cloud, Internet and VPN services," said Rick Malone, principal of Vertical Systems Group. "During the past year, Ethernet providers focused on better monetizing service features to expand their existing business, while introducing streamlined offers to target the needs of the SMB market."

Highlights of Vertical's 2019 U.S. Ethernet Market Share Analysis

  • CenturyLink continues to hold first position on the U.S. Ethernet LEADERBOARD, followed by AT&T in second position.
  • Spectrum Enterprise moves up to the third position from fourth, surpassing Verizon.
  • Comcast had the highest year-over-year market share growth across the 2019 LEADERBOARD providers.
  • Four Incumbent Carriers (CenturyLink, AT&T, Verizon, Windstream) and three Cable MSOs (Spectrum Enterprise, Comcast, Cox) are represented on the 2019 LEADERBOARD. 

Highlights of Vertical's 2019 U.S. Ethernet Market Share Analysis

  • Retail U.S. Ethernet installations increased 8.9% to more than 1.25 million customer ports.
  • Price compression, particularly for high speed services, continues to limit Ethernet revenue growth.
  • Ethernet is the WAN underlay of choice for Carrier Managed SD-WAN solutions requiring secure, dedicated high speed connectivity.
  • Active fiber build-outs across the U.S. are enabling Ethernet footprint expansions to serve a broader base of mid-market customers.
  • Ethernet service enhancements are providing customers with improved performance, faster installations, and more flexible network configurations.

Monday, November 25, 2019

Reality check for the SD-WAN market



Quick reality check on SD-WAN... the U.S. market is currently in the high 100 million dollar range for carrier managed services. In comparison, the existing enterprise VPN service market, which includes MPLS and site-to-site VPNs, is valued at $12 billion or more, even though it is flat to slightly declining.

Erin Dunne, Director of Research Services, Vertical Systems Group, provides insight.

https://youtu.be/3a2TENT4OVc

Thursday, September 19, 2019

Vertical Systems: Mid-2019 Global Provider Ethernet LEADERBOARD

AT&T has topped Vertical Systems Group's Mid-Year 2019 Global Provider Ethernet LEADERBOARD. Results are as follows (in rank order based on retail port share): AT&T (U.S.), Colt (U.K.), CenturyLink (U.S.), BT Global Services (U.K.), Orange Business Services (France), Verizon (U.S.) and NTT (Japan).

"Network providers serving multinational enterprises continue to actively expand their Ethernet coverage globally," said Rick Malone, principal of Vertical Systems Group. "Customer demand for T1/E1 conversions and new Ethernet DIA connections are igniting growth in both existing and emerging markets. In response, providers are seeking more local partnerships to broaden their service delivery footprints."

Mid-Year 2019 Global Provider Highlights:

  • AT&T retains the top position on the Global Provider LEADERBOARD for the second consecutive year.
  • Share margins are tightening among the top four LEADERBOARD ranked companies - AT&T, Colt, CenturyLink and BT Global Services.
  • Eight companies attained a Challenge Tier citation, up from seven at the end of 2018, as Global Cloud Xchange advances from the Market Player tier.
  • Four of the seven LEADERBOARD providers and six of the eight Challenge Tier providers have MEF CE 2.0 certification. 

Tuesday, September 10, 2019

Vertical Systems: Mid-Year 2019 U.S. Carrier Ethernet LEADERBOARD

The top seven companies on Vertical Systems Group's newly published mid-year 2019 U.S. Carrier Ethernet LEADERBOARD are (in rank order based on mid-year 2019 retail port share): CenturyLink, AT&T, Verizon, Spectrum Enterprise, Comcast, Windstream and Cox. This mid-year LEADERBOARD roster increases from six to seven as Cox moves up from the Challenge Tier.

To qualify for a rank on this LEADERBOARD, network providers must have four percent (4%) or more of the U.S. Ethernet services market. Shares are measured based on the number of billable retail customer ports installed. Vertical Systems Group's Ethernet port share analysis includes the following six service segments from the market perspective of what service providers are offering and enterprise customers are purchasing: Ethernet DIA (Dedicated Internet Access), E-Access to IP/MPLS VPN, Ethernet Private Lines, Ethernet Virtual Private Lines, Metro LAN, and WAN VPLS.

"In the first half of 2019 the U.S. Ethernet market showed steady port growth just above five percent," said Rick Malone, principal of Vertical Systems Group. "The three Cable MSOs ranked on the LEADERBOARD - Spectrum Enterprise, Comcast and Cox - had the highest port growth in this period, spurred in part by SD-WAN customer demand for Ethernet DIA connections to the public Internet."

In addition to the LEADERBOARD providers, all other companies selling Ethernet services in the U.S. are segmented into two tiers as measured by port share.

The Challenge Tier includes providers with between 1% and 4% share of the U.S. retail Ethernet market. For mid-year 2019, the following six companies attained a position in the Challenge Tier (in alphabetical order): Altice USA, Cogent, Frontier, GTT, Sprint and Zayo.

The Market Player tier includes all providers with port share below 1%. Companies in the Market Player tier include the following providers (in alphabetical order): Alaska Communications, American Telesis, Atlantic Broadband, BT Global Services, Cincinnati Bell, Consolidated Communications, Crown Castle Fiber, DQE Communications, Expedient, FiberLight, FirstLight, Fusion, Global Cloud Xchange, Great Plains Communications, Logix Fiber Networks, LS Networks, Masergy, MetTel, Midco, Momentum Telecom, NTT America, Orange Business, RCN Business, Segra, Sparklight Business, Tata, TDS Telecom, Telstra, TPx, Unite Private Networks, US Signal, WOW!Business and other companies selling retail Ethernet services in the U.S. market.

http://www.verticalsystems.com

Thursday, May 23, 2019

Vertical Systems Group: 2018 U.S. Carrier Managed SD-WAN LEADERBOARD

Vertical Systems Group announces that eight companies achieved a position on
AT&T achieved the top position on Vertical Systems Group's 2018 U.S. Carrier Managed SD-WAN Services LEADERBOARD.

The top eight companies (in rank order): AT&T, Hughes, Verizon, Windstream, CenturyLink, Aryaka, Fusion and Comcast. These companies had the highest market shares of installed Carrier Managed SD-WAN customer sites in the U.S. as of year-end 2018.

"Providers in the Carrier Managed segment of the SD-WAN market have emerged as the best choice for delivering large scale, complex and resilient SD-WAN services end-to-end," said Rick Malone, principal of Vertical Systems Group. "We believe that network operators with deep experience in MPLS, Ethernet and IP are most favorably positioned to support enterprise customers as they transition their networks to SDN."

Companies with the next largest market shares in this segment are cited in the Challenge Tier. The following six companies attained a Challenge Tier citation for 2018 (in alphabetical order): Bigleaf, GTT, Masergy, Meriplex, Sprint, and TPx.

Research Highlights

  • SD-WAN is one of the three Managed VPN segments that Vertical tracks, along with MPLS and Site-to-Site VPNs. Service migration analysis shows that the majority of Carrier Managed SD-WAN service installations to date are hybrid configurations that include partial conversions of existing Site-to-Site and MPLS networks.
  • The top five Carrier Managed SD-WAN companies are also the leading providers of Dedicated IP VPN services, including landline and satellite connectivity.
  • A number of SDN-based technologies are utilized to deliver Carrier Managed SD-WAN services. The fourteen LEADERBOARD and Challenge Tier providers use products from the following companies (in alphabetical order): Cisco/Viptela, Silver Peak, Versa, and VMware/VeloCloud, or employ their own internally developed technologies. Several SD-WAN service providers offer multiple solutions.
  • Vertical Systems Group defines a Carrier Managed SD-WAN Service as a carrier-grade offering for business customers that is managed by a network operator, utilizes an SDN architecture, enables dynamic customer edge site connectivity, and provides centralized network control and visibility end-to-end. This definition aligns with MEF terminology for an SD-WAN service.

https://www.verticalsystems.com/2019/05/21/2018-sd-wan-us-leaderboard/

Monday, April 1, 2019

Vertical Systems: AT&T tops U.S. Fiber Lit Buildings LEADERBOARD

Vertical Systems Group’s 2018 U.S. Fiber Lit Buildings LEADERBOARD results are as follows (in rank order by number of fiber lit buildings): AT&T, Verizon, Spectrum Enterprise, CenturyLink, Comcast, Cox, Crown Castle Fiber, Frontier, Zayo, Altice USA, and Windstream. These eleven retail and wholesale fiber providers qualify for this benchmark with 10,000 or more on-net U.S. fiber lit commercial buildings as of year-end 2018.

Additionally, thirteen companies qualify for the 2018  Challenge Tier as follows (in alphabetical order): Atlantic Broadband, Cincinnati Bell, Cleareon, Cogent, Consolidated Communications, FiberLight, FirstLight, GTT, IFN, Logix Fiber Networks, Segra, Unite Private Networks, and Uniti Fiber. These fiber providers each qualify for the 2018 Challenge Tier with between 2,000 and 9,999 U.S. fiber lit commercial buildings.

“Following a flurry of mergers and acquisitions, fiber providers focused on new buildouts in 2018 to meet customer demand for higher speed dedicated access to business services and to support 5G pilots,” said Rosemary Cochran, principal of Vertical Systems Group. “Our research shows that while the majority of large and medium size commercial buildings in the U.S. are fiber lit with one or more providers, relatively few small multi-tenant buildings are fiber connected. Cable MSOs and regional network operators have been most actively targeting fiber investment opportunities in this underserved segment.”

Fiber Provider Research Summary

  • AT&T ranks #1 on the Fiber Lit Buildings LEADERBOARD for the third consecutive year.
  • Frontier moves into the #8 position, up from ninth in the prior year.
  • As a result, Zayo falls to #9, down from eighth position.
  • Windstream enters the LEADERBOARD at #11, moving up from the Challenge Tier.
  • Atlantic Broadband and GTT advance to the Challenge Tier, both moving up from the Market Player tier.
  • Cincinnati Bell’s acquisition of Hawaiian Telecom, which was completed in 2018, is reflected in this analysis.
  • Segra is the new brand name for the merged entity of Lumos Networks and Spirit Communications.


https://www.verticalsystems.com/2019/03/26/2018-fiber-lit-leaderboard/

Wednesday, March 13, 2019

Vertical Systems: 2018 Global Provider Ethernet LEADERBOARD

AT&T ranks first on Vertical Systems Group's 2018 Global Provider Ethernet LEADERBOARD, followed by Colt, CenturyLink, BT Global and Orange, Verizon, and NTT.

The Global Provider LEADERBOARD ranks companies that hold a 4% or higher share of billable retail ports at sites outside of their respective home countries.

Share margins continue to narrow among the leading global service providers in this very competitive market segment. Latest share results show a major shakeup in the rankings for the top five companies as compared to year-end 2017, with each in a new position on the 2018 Global Provider LEADERBOARD.

"Multinational customers are massively upgrading bandwidth and expanding connectivity to cloud services and data centers. Ethernet providers with extensive global fiber footprints that deeply serve strategic business hubs are capturing a large portion of this new business," said Rick Malone, principal of Vertical Systems Group.

Year-End 2018 Global Provider Segment Highlights:

  • AT&T holds first position, which it initially attained by surpassing Orange Business at mid-2018. AT&T ranked second at the end of 2017.
  • Colt ranks second, up from third position in 2017.
  • CenturyLink is in third position. The company ranked fourth at year-end 2017 when it initially entered the top tier following its merger with Level 3.
  • BT Global Services is fourth, as compared to fifth in 2017.
  • Orange Business holds fifth position. The company previously held first position on every year-end Global Provider LEADERBOARD between 2009 and 2017.
  • GTT is a new entrant to the Challenge Tier, advancing from the Market Player tier for the first time.
More: https://www.verticalsystems.com/2019/03/12/2018-global-ethernet-leaderboard/

Wednesday, March 6, 2019

Vertical Systems': Incumbent carriers most U.S. retail Ethernet ports

CenturyLink, AT&T, Verizon, Windstream and Frontier have gained a position on the 2018 U.S. Incumbent Carrier Ethernet LEADERBOARD, according to Vertical Systems Group's latest research.

The Incumbent Carrier LEADERBOARD, which ranks incumbents in order based on U.S. retail Ethernet port share for this segment, is an industry benchmark for measuring Ethernet market presence. To qualify for the 2018 U.S. Incumbent Carrier Ethernet LEADERBOARD, companies must have either a top rank or a Challenge Tier citation on the 2018 U.S. Carrier Ethernet LEADERBOARD.

Some highlights:

  • CenturyLink, AT&T, Verizon and Windstream each hold a top rank on the 2018 U.S. Carrier Ethernet LEADERBOARD. Frontier has a Challenge Tier citation for 2018.
  • The Incumbent Carrier segment accounted for more than half of the 1.1+ million retail Ethernet customer ports installed in the U.S. at the end of 2018.
  • Incumbent Carrier is one of three U.S. provider segments, along with the Competitive Provider and Cable MSO segments. Incumbent Carriers are facilities-based telecom companies, including IXC and LEC providers.

Other companies in the Incumbent Carrier segment selling retail Ethernet services in the U.S. market include the following (in alphabetical order): Alaska Communications, Cincinnati Bell, TDS Telecom and other local and regional incumbents.

Research sources for share calculations include Vertical Systems Group's base of enterprise installations, plus direct input from biannual surveys of network operators selling Ethernet network services.

Detailed Ethernet share results that power the Year-End 2018 U.S. Ethernet Segment LEADERBOARDs are available now exclusively to ENS Research Program subscribers. For more information Contact Us.



Thursday, February 14, 2019

Vertical Systems: 2018 U.S. Carrier Ethernet LEADERBOARD

CenturyLink retains top position in Vertical Systems Group's 2018 U.S. Carrier Ethernet LEADERBOARD.

Six companies achieved a position on the 2018 U.S. Carrier Ethernet LEADERBOARD as follows (in rank order based on year-end 2018 retail port share): CenturyLink, AT&T, Verizon, Spectrum Enterprise, Comcast and Windstream.

To qualify for a rank on this LEADERBOARD, network providers must have four percent (4%) or more of the U.S. Ethernet services market. Shares are measured based on the number of billable retail customer ports in service as tracked by Vertical Systems Group.

“Despite its relative maturity, the Ethernet market continues to expand at a healthy pace. U.S. port installations grew more than twelve percent in 2018, in line with our forecasts,” said Rick Malone, principal of Vertical Systems Group. “However, revenue growth is not keeping pace with port growth due to falling prices and changing service mixes. One notable catalyst is the deployment of SD-WAN, which is resulting in customers shifting from switched Ethernet services to dedicated Internet access.”

Highlights of Vertical’s year-end 2018 U.S. Ethernet market share analysis:

  • U.S. retail Ethernet customer installations grew to more than 1.1 million ports, up 12 percent from year-end 2017.
  • Six Ethernet providers qualify for the 2018 LEADERBOARD, as compared to seven in 2017 and nine in 2016.
  • Cox dropped out of the LEADERBOARD and into the Challenge Tier on slower than market port growth.
  • Four Incumbent Carriers (CenturyLink, AT&T, Verizon, Windstream) and two Cable MSOs (Spectrum Enterprise, Comcast) are represented on the latest LEADERBOARD.
  • The two Cable MSOs (Spectrum Enterprise and Comcast) had the highest port growth in the second half of 2018.
  • Ethernet pricing declined in 2018 across all port speeds for the six service types tracked by Vertical (i.e., EPL, EVPL, DIA, Access to VPN, Switched Metro and VPLS).
  • Each of the 2018 U.S. LEADERBOARD companies has received MEF CE 2.0 certification.
  • In addition to the LEADERBOARD providers, all other companies selling Ethernet services in the U.S. are segmented into two tiers as measured by port share.


More: https://www.verticalsystems.com/2019/02/14/2018-us-ethernet-leaderboard/

Thursday, December 6, 2018

Vertical Systems: Managed SD-WAN services tops $282M in US

U.S. revenue is estimated at more than $282 million for Managed SD-WAN services in 2018, according to a new report from Vertical Systems Group covering service migration, network connectivity and market sizing.

This figure is based on billable U.S. customer sites and WAN access connections installed and under management.

A Managed SD-WAN Service is defined as a carrier-grade network offering for enterprise and business customers, which is managed by a network operator, and delivered over a Software Defined Network (SDN) service architecture that has separate control (overlay) and data (underlay) planes. Not included in this analysis are DIY (Do It Yourself) SD-WAN solutions purchased directly from an SD-WAN technology supplier or a systems integrator.

“Carrier-grade Managed SD-WAN Services in the U.S. began to generate notable revenue in the second half of 2018. Prior to this, most providers supported customers with pilot SD-WAN services that were not substantively monetized,” said Rick Malone, principal of Vertical Systems Group. “For 2019, we expect a major boost in revenue with network operators fully ramped up to sell, deliver and support Managed SD-WAN Services. Moreover, a key driver for managed services is the growing appreciation that migration to SD-WAN is considerably more complex than the promise of ‘easily deployed’ plug-and-play DIY solutions.”

Providers actively selling Managed SD-WAN services in the U.S. include the following companies (in alphabetical order): Aryaka, AT&T, CenturyLink, Cogent, Comcast, Fusion Connect, GTT, Hughes, Masergy, MetTel, Sprint, Verizon, Windstream and Zayo. Other network operators throughout the world offer or plan to offer Managed SD-WAN Services in the U.S. market.

https://www.verticalsystems.com/2018/12/05/sd-wan-tops-282m/

Sunday, September 9, 2018

AT&T leads Mid-Year 2018 Global Provider Ethernet LEADERBOARD

AT&T leads Vertical Systems Group's Mid-Year 2018 Global Provider Ethernet LEADERBOARD published this month. The results are as follows (in rank order based on retail port share): AT&T (U.S.), Colt (U.K.), CenturyLink (U.S.), Orange Business (France), BT Global Services (U.K.), Verizon (U.S.) and NTT (Japan).

The Global Provider LEADERBOARD, the industry's benchmark for multinational Ethernet network market presence, ranks companies that hold a 4% or higher share of billable retail ports at sites outside of their respective home countries. Port counts include switched Ethernet, Ethernet Private Line (EPL), and Ethernet Virtual Private Line (EVPL) services, as well as Ethernet access to Cloud/Internet, MPLS and other VPNs.

The Challenge Tier of Global Providers includes companies with share between 2% and 4% of this defined market. Seven companies qualify for the mid-2018 Challenge Tier (in alphabetical order): Cogent (U.S.), Global Cloud Exchange (India), SingTel (Singapore), T-Systems (Germany), Tata Communications (India), Telefonica Worldwide (Spain) and Vodafone (U.K.).

"Global service providers are responding to the challenges of providing their multinational customers with higher speed Ethernet connectivity to MPLS, SD-WAN and cloud services in dozens of key markets throughout the world," said Rick Malone, principal at Vertical Systems Group. "The top-ranked global providers continue to be separated by only a few share points in this highly competitive market segment."

Mid-2018 Global Provider Research Highlights:

  • AT&T is the first U.S. company to attain the top position in the Global Provider LEADERBOARD. AT&T increased its rank to first position from second at the end of 2017.
  • Orange Business drops from first to fourth position as a result of slowing growth in its global Ethernet business. The perennial leader in this market segment, Orange had previously attained first position on every year-end Global Provider LEADERBOARD since 2009.
  • Colt moves into second position, up from third at the end of 2017, with the integration of its Asian operations (via its KVH acquisition) and pan-European network.
  • CenturyLink advances to third from fourth position due to Orange's fall, and boosted by Level 3's assets outside the U.S.

Thursday, August 23, 2018

Vertical Systems: Mid-Year 2018 U.S. Carrier Ethernet LEADERBOARD

Vertical Systems Group released its Mid-year 2018 U.S. Carrier Ethernet LEADERBOARD listing the top seven carriers, in rank order based on retail port share, as follows: CenturyLink, AT&T, Verizon, Spectrum Enterprise, Comcast, Windstream and Cox.

To qualify for the LEADERBOARD, providers must have four percent (4%) or more of the U.S. Ethernet services market. Shares are measured by the number of customer ports in service as tracked by Vertical Systems Group, with input from surveys of Ethernet providers.

"After a flurry of M&A activity during the past two years, the Ethernet marketplace stabilized during the first half of 2018," said Rick Malone, principal of Vertical Systems Group. "U.S. port growth was more than 6 percent for the period, with accelerating deployments of multi-gigabit speed services. Most providers experienced acute price compression across all data rates, partially offsetting the revenue typically generated from higher speed services. All providers are grappling with longer sales cycles due to SD-WAN, however the impact on the U.S. Ethernet base has been negligible to date."

Other providers selling Ethernet services in the U.S. are segmented into two tiers as measured by port share. The first or Challenge Tier includes providers with between 1% and 4% share of the U.S. retail Ethernet market. For Mid-Year 2018, the following companies attained a position in the Challenge Tier (in alphabetical order): Altice USA, Cogent, Frontier, GTT, Sprint and Zayo.

Friday, April 27, 2018

Vertical Systems Group: 2017 U.S. Fiber Lit Buildings LEADERBOARD

Vertical Systems Group published the following 2017 U.S. Fiber Lit Buildings LEADERBOARD (in rank order by number of fiber lit buildings): AT&T, Verizon, Spectrum Enterprise, CenturyLink, Comcast, Cox, Crown Castle Fiber, Zayo, Frontier and Altice USA. These ten retail and wholesale fiber providers each qualified for this benchmark with 10,000 or more on-net U.S. fiber lit commercial buildings as of year-end 2017.

Twelve companies qualified for the 2017 Fiber Lit Buildings Challenge Tier as follows (in alphabetical order): Cincinnati Bell, Cleareon, Cogent, Consolidated Communications, FiberLight, FirstLight, IFN, Logix Fiber Networks, Lumos Networks, Unite Private Networks, Uniti Fiber and Windstream. These fiber providers each qualified for the 2017 Challenge Tier with between 2,000 and 9,999 U.S. fiber lit commercial buildings.

“With fiber footprint expansion in the strategic plans of every major network service provider, we’re seeing a significant ramp up in new lit building deployments,” said Rosemary Cochran, principal of Vertical Systems Group. “Merger, acquisition and re-branding activity across the fiber provider landscape is so intense that it takes a scorecard to keep track. Nearly every one of this year’s Fiber LEADERBOARD and Challenge Tier companies has been impacted by one or more fiber-related transactions in the past year.”

2017 Fiber Lit Buildings Research Scorecard
Major transactions for 2017 Fiber Lit Buildings LEADERBOARD companies:

  • Verizon (#2) acquired XO (2016 Challenge Tier)
  • CenturyLink (#4) merged with Level 3 (#6 on 2016 LEADERBOARD)
  • Crown Castle Fiber enters at #7 with the acquisition of Lightower (#8 on 2016 LEADERBOARD) and operations consolidation that included 2016 Challenge Tier companies, Sunesys and FiberNet Direct
  • Zayo (#8) advances from #9 in 2016 with the acquisition of Electric Lightwave (2016 Challenge Tier)
  • Frontier (#9) advances from #11 in 2016 with fiber assets acquired from Verizon

Other 2017 Challenge Tier company activity:
Consolidated Communications acquired Fairpoint (2016 Challenge Tier)
Uniti Fiber acquired Southern Light (2016 Challenge Tier)
Entering the 2017 Challenge Tier: Logix Fiber Networks, moving up from the Market Players tier

Sunday, April 8, 2018

Vertical Systems Group: U.S. Business Fiber Availability Reaches 54.8%

The availability of optical fiber connectivity to large and medium size commercial buildings in the U.S. jumped to 54.8% in 2017, based on latest research from Vertical Systems Group. As a result, the U.S. Fiber Gap has dropped to less than fifty percent (45.2%) for the first time. This annual benchmark quantifies the scope of fiber lit buildings in the U.S. with twenty or more employees. Encompassing more than two million individual business establishments, this base of commercial buildings maps directly to the addressable market for higher speed Carrier Ethernet, Cloud, Data Center, Hybrid VPN and emerging SDN-enabled services. The count does not include standalone cell towers, small cells not located in fiber lit buildings, near net buildings, buildings classified as coiled at curb or coiled in building, HFC-connected buildings, carrier central offices, residential buildings, and private or dark fiber installations.

“More commercial U.S. buildings were newly lit with fiber during 2017 than in any other year since we initiated this research in 2004. The number of net new fiber lit buildings increased across every building size segment, and most substantially for medium size sites,” said Rosemary Cochran, principal of Vertical Systems Group. “Deployments will continue to accelerate because fiber is both a strategic asset for delivery of wireline business services, as well as a necessity for enabling 5G.”

https://www.verticalsystems.com/2018/04/05/u-s-business-fiber-availability-reaches-fifty/

Sunday, March 25, 2018

Orange leads 2017 Global Provider Ethernet LEADERBOARD

Orange retains the top position on Vertical Systems Group’s 2017 Global Provider Ethernet LEADERBOARD, while AT&T moves up to second, displacing Colt.

The results are as follows (in rank order based on retail port share): Orange Business Services (France), AT&T (U.S.), Colt (U.K.), CenturyLink (U.S.), BT Global Services (U.K.), Verizon (U.S.) and NTT (Japan). The Global Provider LEADERBOARD, the industry’s benchmark for multinational Ethernet network market presence, ranks companies that hold a 4% or higher share of billable retail ports at sites outside of their respective home countries.

The Challenge Tier of Global Providers includes companies with share between 2% and 4% of this defined market. Seven companies qualify for the year-end 2017 Challenge Tier (in alphabetical order): Cogent (U.S.), Global Cloud Xchange (India), SingTel (Singapore), T-Systems (Germany), Tata Communications (India), Telefonica Worldwide (Spain) and Vodafone (U.K.). Global Cloud Xchange is the new entrant gaining a Challenge Tier citation, moving up from the Market Player tier.

“With very slim margins separating the leading global service providers, Orange remains in first position, AT&T advances to second, and CenturyLink makes its debut,” said Rick Malone, principal at Vertical Systems Group. “To serve this specialized global market, key providers are increasing deployments of higher speed Ethernet connectivity to MPLS, VPLS and cloud services, while transitioning customers to more dynamic, advanced SDN-based hybrid WAN and SD-WAN offerings.”

The Market Player tier includes all Global Providers with port share below 2%. Companies in the year-end 2017 Market Player tier are as follows (in alphabetical order): Bell (Canada), Bezeq (Israel), CAT Telecom (Thailand), China Telecom (China), Chunghwa Telecom (Taiwan), Eir (Ireland), Embratel (Brazil), euNetworks (U.K.), Exponential-e (U.K.), Globe (Philippines), GlobeNet (Brazil), GTT (U.S.), HGC Global (Hong Kong), Indosat (Indonesia), Interoute (U.K.), KDDI (Japan), Korea Telecom (Korea), KPN (Netherlands), Liberty Global (Netherlands), Masergy (U.S.), PCCW Global (Hong Kong), PLDT Global (Philippines), Rogers (Canada), Rostelecom (Russia), Spark (New Zealand), Sparkle (Italy), Sprint (U.S.), StarHub (Singapore), TDC (Denmark), Telekom Malaysia (Malaysia), Telia (Sweden), Telin (Singapore), Telkom South Africa (South Africa), TelMex (Mexico), Telstra (Australia), Vector (New Zealand), Virgin Media Business (U.K.), Zayo (U.S.), and other providers selling Ethernet services outside their home country.

Wednesday, March 21, 2018

CenturyLink overtakes AT&T on Vertical Systems Group Leaderboard

CenturyLink (including Level 3), AT&T, Verizon (including XO), Windstream and Frontier have gained a position on the 2017 U.S. Incumbent Carrier Ethernet LEADERBOARD, according to Vertical Systems Group’s latest research.

The Incumbent Carrier LEADERBOARD, which ranks incumbents in order based on U.S. retail Ethernet port share for this segment, is an industry benchmark for measuring Ethernet market presence.

CenturyLink jumps to the first position on the 2017 Incumbent Carrier LEADERBOARD based on Ethernet ports from its Level 3 merger, up from the third position in the previous year. As a result, AT&T moves into the second position from first, where it had been perennially ranked in the incumbent segment. Verizon (including ports from its acquisition of XO) is in the third position, followed by Windstream at the fourth position. Frontier gains the fifth position for its initial entry to the Incumbent Carrier benchmark ranking.

Other companies in the Incumbent Carrier segment selling retail Ethernet services in the U.S. market include the following (in alphabetical order): Alaska Communications, Cincinnati Bell, Hawaiian Telecom, TDS Telecom and other incumbents.

To qualify for the 2017 U.S. Incumbent Carrier Ethernet LEADERBOARD, companies must achieve either a top rank or a Challenge Tier citation on the 2017 U.S. Carrier Ethernet LEADERBOARD. Incumbent Carrier is one of three U.S. provider segments, along with the Competitive Provider and Cable MSO segments.