[CAnet - news] More Enterprises Tap Private Fiber

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[Some excerpts from Byteandswitch article -- BSA]

http://www.byteandswitch.com/document.asp?doc_id=103606&WT.svl=news1_2


Insider: Enterprises Tap Private Fiber

New backup pressures, falling equipment costs, and wider availability of
both lit and dark fiber are leading more enterprises to create or expand
private networks, according to the latest Byte and Switch Insider.

The report, Past Forward: Enterprise Fiber Nets Make a Comeback, reveals
that some large enterprises, including Ford and publishing firm Gannett,
have already gone beyond leasing and are now constructing their own
fiber-optic networks. Other users may now follow suit, thanks to recent
advances in the technology, which continue to drive costs down.

"Prices for enterprise-class optical equipment have fallen to the point that
more organizations can consider building private networks using either lit
or dark fiber available from a range of carriers and network operators,"
says Max Smetannikov, research analyst for Byte and Switch Insider, and
author of the report. "Any organization that can invest $2,000 in telecom
equipment now can seriously consider purchasing dark fiber for a strategic
network," he says.
	
Several carriers report that a number of U.S. banks with large call centers
in North and South Dakota, for example, have been involved in building new
fiber-optic networks. Others point to oil exploration operations in Canada
that use fiber to send geological data.

Although there are currently no laws requiring enterprises to build private
fiber networks, the report identifies mounting pressures from regulators and
investors for enterprises to have access to data. South Korea, for example,
has become the first country to require businesses to back up their data.

The report also identifies a number of industries where users are
particularly likely to create their own fiber networks. These include
healthcare, where the Health Insurance Portability and Accountability Act
(HIPAA) prescribes specific procedures for record storage and access, and
the financial sector, which is wrestling with the backup requirements of the
Sarbanes-Oxley Act (SOX). (See Retention Rules Set to Change, Research Finds
HIPAA Ineffective, Users Splash Cash on SOX, SOX Spending Slams Security,
and Help for the Compliance Crazed.) The bandwidth-hungry online media and
education sectors are also prime candidates, according to the report.

To subscribe, or for more information, please visit: Byte and Switch
Insider. For more information about all of Light Reading Inc.'s Insider
research services, please visit www.lightreading.com/research.

To request a free executive summary of the report, or for details on
multi-user licensing options, please contact:

Lee Salem
Sales Director
Heavy Reading Enterprise
415-947-6144
[email protected]


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those  of the CANARIE board or management.
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