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Cloud report shows spending shift; vendors push 2.5 GbE, 5 GbE

In telecom news, Cisco and other vendors advocate for 2.5 GbE and 5 GbE advancements while Verizon's enterprise cloud report shows a shift in who is spending money on cloud services.

This week in telecom news, Cisco teamed up with a group of vendors to create an alliance to promote the advancement of 2.5 GbE and 5 GbE technology that will enable faster data rates on networking cabling originally designed for 1 GbE technology. Meanwhile, a Verizon report on enterprise cloud found that IT departments are taking control of cloud spending.

Federal Communications Commission (FCC) Chairman Tom Wheeler is weighing a net neutrality  proposal that will divide broadband services into two tiers: retail and wholesale. This new proposal is being viewed as a compromise on net neutrality.

Vendors join forces to promote 2.5 GbE, 5 GbE

To encourage the development of 2.5 and 5 Gigabit Ethernet technology, Cisco has joined forces with three vendors to create the NBASE-T Alliance, an organization whose objective is to "advance multi-gigabit Ethernet technology that enables faster data rates on existing enterprise cabling originally designed for 1 Gigabit Ethernet technology."

According to Cisco, mobile data traffic being offloaded from mobile networks to fixed networks will increase from 45% in 2013 to 52% in 2018, adding huge amounts of wireless data transmitted over WLAN in enterprise branch and campus networks.

"As the Wave 2 of [802.11ac] gets introduced, traffic aggregated on [wireless access points] will quickly surpass multiple gigabits per second, and therefore require both the access point and the Ethernet switch ports to scale beyond the 1 GbE used in most networks," the organization said in a press release. The group also includes the vendors Aquantia, Freescale and Xilinx.

While the organization advocates for the advancement of 2.5 GbE and 5 GbE, the IEEE is responsible for standardizing the technology. The IEEE plans to discuss the standards at its plenary meeting this week, said David Chalupsky, technical chair of the Ethernet Alliance BASE-T subcommittee and IEEE 40GBASE-T Task Force.

Verizon cloud report shows IT departments taking control

IT managers are taking control of cloud spending as enterprise cloud adoption grows, Verizon's latest State of Enterprise Cloud report found.

Enterprise spending on the cloud is up 38% year over year as enterprises embrace the cloud and leverage it to drive business growth. The majority of that spending -- 80% -- is managed by IT departments, with CIOs directly controlling more than half of the spending, according to the report.

"We see an evolution of enterprise IT becoming cloud brokers," Siki Giunta, senior vice president at Verizon Enterprise Solutions, told Light Reading. "They are much more empowered with their processes that are focused on how to acquire cloud, how to evaluate cloud -- their sourcing is much more evolved."

Verizon reported that 72% of enterprises plan to put more than half of their workloads in the cloud by 2017. This year, 71% of Verizon cloud customers used cloud services for mission-critical applications, up from 60% in 2013.

"Increasingly, organizations are adopting a planned lifecycle approach to the cloud, recognizing that each and every application has its own unique considerations and cloud migration path," Giunta said.

FCC's Wheeler proposes two-tier net neutrality plan

FCC Chairman Tom Wheeler is eyeing a hybrid approach to net neutrality that would separate broadband into two tiers.

Under the proposed plan, broadband would be separated into a retail tier and a wholesale tier. The retail tier would consist of service providers like Comcast and Verizon that supply customers with a broadband service. The wholesale tier would consist of service providers acting as a backbone to content providers like Netflix to distribute content, according to FierceTelecom.

The hybrid approach is considered a compromise, as the FCC would not have to regulate broadband providers but would classify the wholesale tier as a common carrier and give the FCC regulatory control. The proposal requires the support of all five members of the commission.

In related news, AT&T and Comcast have pledged they have no plans to create Internet "fast lanes" after receiving letters from U.S. Senator Patrick Leahy (D-Vt.), who is chair of the Senate Judiciary Committee, urging the providers to make the pledge.

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