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IT teams are outsourcing their managed Ethernet services rather than building and deploying their own DIY capability. These managed Ethernet services address many challenges caused by DIY Ethernet. For instance, you need the right technical expertise to deploy and configure DIY connectivity and dedicated internal resources to manage the circuits. On the other hand, managed services allow companies to leverage the most up-to-date technical expertise in the industry. Moreover, they free the internal IT teams from the burden of managing the Ethernet.
Ethernet is a networking technology invented fifty years ago to connect devices within a wired Local Area Network (LAN) or a Wide Area Network (WAN). Ethernet uses cables for data transmission. Thus, it differs from WiFi technology, which does not use any cables. Ethernet WAN is simple, cost-effective, and easy to deploy and update with technological innovations. Furthermore, it can be used in any environment. Thus, Ethernet has become the de facto standard for most networks like campus networks, data centers, and private office networks. It can operate with wireless protocols and supports complex networks like software-defined networks and virtual private networks (VPNs).
Managed Ethernet services are third-party services that provide privately owned, high-quality, and fast ethernet connections for businesses on any scale. They offer ethernet solutions tailored to business requirements like bandwidth, security, and application. The managed Ethernet service provider handles everything from the design, and deployment, to the management of the Ethernet. Thus, the internal IT teams of the organization are relieved from the stress of managing the Ethernet, which allows them to focus on their strategic goals.
| Types of Ethernet | Ethernet Use Cases |
| VLL Pseudowire | Connecting branch offices and connecting data centres which reside in multiple physical locations. |
| VPLS (Virtual Private LAN Service) | Connecting multiple data centres, offices or branch-office locations. |
| Dedicated fiber Ethernet circuits | Companies that have mission critical applications. |
| Metro Ethernet | Extending the LAN between data centres. Connecting residential subscribers to network connectivity. Provision of mobile backhaul connectivity. |
| Optical circuits | High bandwidth bandwidth services with very low latency, ideal for the broadcast industry and the trading market. |
DIY Ethernet services are provided and fully managed by the internal IT teams - organizations have complete control of their DIY Ethernet solution as they fully own it.
IT teams need to consider several aspects when creating a self-managed DIY Ethernet. They are as follows:
Ethernet is used in many industry sectors, such as:
You can buy Ethernet as a Cloud service and easily integrate it into a WAN edge or virtualized environment. It is simple to consume Cloud Ethernet as a managed service due to its direct integration with the Cloud, different virtual circuits, and centralized management. Many cloud service providers like AWS, Azure, or Google Cloud provide virtual circuits.
For example, the AWS Direct Connect service extends the on-premises networks to the Cloud. Moreover, it provides virtual circuits for Ethernets like virtual private Cloud (VPN), Virtual Private Gateways (VPG), VPC, and VPC peering, simplifying consuming Cloud Ethernet as a managed service. Azure also provides Azure Virtual Networks (VNets), VPNs, and managed security services for Ethernet. Google Cloud includes Hybrid connectivity, VPC, Private service connection, and VPC service controls.
Consider the items below when creating your vendor shortlist.
IT teams should consider the following components when comparing service providers.
The Cloud helps managed customers achieve more by leveraging virtual circuits between cloud providers such as AWS, Azure, and Google. For example, the Direct Connect service in AWS connects your private network to AWS over a standard Ethernet fiber-optic cable. It creates virtual interfaces for AWS services like VPC or S3 and allows users to create hybrid environments on AWS and on-premises.
Managed Ethernet services are designed to respond quickly to incidents such as network outages and cable issues. Network monitoring enables customers to detect performance issues before they can impact the business together with analytics and reporting services to get insights on their performance over time.
Managed Ethernet offers high security for remote global users through mechanisms like using VLANs, 802.1X for authentication, VPNs, MAC address filtering, firmware, and software updates and firewalls.
Typical SLAs (Service Level Agreements) of Ethernet includes Availability, Round trip delay, jitter, frame loss ratio, and mean time to repair.
Ethernet solutions are designed and implemented in a way that they can be connected to WAN edge, virtualized, and Cloud delivered.
Managed Services provide 24/7 365-day support for their customers worldwide. It also includes real-time monitoring, troubleshooting, and change requests, which typically have defined SLAs for response and fix times to support your business at any time.
Managed Ethernet offers customers greater business agility. For example, managed Ethernet can be designed and deployed quickly, easily, and updated according to changing customer requirements and innovations. This agility component helps businesses adapt to changes quickly and gain a competitive advantage.
A virtual private LAN service (VPLS) is a virtual private network (VPN) that connects multiple geographically dispersed ethernet-based local area networks (LANs) via the internet. VPLS does this by using only a single bridged connection through a managed MPLS backbone. VPLS provides an Ethernet connection to the customers using Multiprotocol Label Switching. Thus, customers see that all services are on the same LAN even though site locations are different.
A virtual leased line (VLL), also known as a Virtual Private Wire Service (VPWS), is a low-cost solution for point-to-point communication over an MPLS or IP network using ethernet.VLL uses pseudowire technology for data transmission.
Metro Ethernet circuits provide secure, high-speed, point-to-point network connectivity over a metropolitan area network (MAN). A metro Ethernet circuit is typically used to connect to larger networks. However, businesses can also use it to connect their offices.
Optical Ethernet Circuits are fiber-optics-based LANs that offer scalable bandwidth for medium-to-large-sized businesses. Optical Ethernet has many options, such as private LAN or public connectivity, traffic priority, and simple billing.
Currently, the market value of Managed Network Services is 1.6 billion US dollars. According to a Future Market Insights report, it is expected to reach 130.9 billion US dollars by 2032. Additionally, the projected growth rate of managed network services is 7.8%. Increased cloud technology adaptation, globalization, and digitization are among the top reasons behind the rise of managed network services usage among businesses.
