The Case for. Carrier Ethernet 2.0

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1 The Case for Carrier Ethernet 2.0 Table of Contents 1 Value of Carrier Ethernet Certification Summary of CE 2.0 Benefits by Stakeholder Value to Enterprise End Users Benefits to End users Guidance for Enterprises Value to Small and Medium Business Users Value to Mobile Backhaul Operators and Access Providers Value to Service Providers Value to Equipment Manufacturers Summary... 9 Background, Purpose, Audience This document is a companion to the MEF Carrier Ethernet Generations Overview presentation and examines the benefits and values to end users, service providers and equipment manufacturers Value of CE 2.0 Enterprises: Predictable performance, optimized bandwidth use, better QoS Small Medium Businesses: better service availability, and where Internet delivery does not meet business requirements Mobile Operators: reduced OpEx, Access Providers lower CapEx Service Providers: easier, lower interconnect cost, business-friendly wholesale model Equipment Manufacturers: additional revenue from expanded market, new certification program February 2012 Page 1 of 9

2 1 Value of Carrier Ethernet 2.0 The Compelling Case for Carrier Ethernet 2.0 (CE 2.0) The approval of key MEF specifications in 2012 marks the point at which a second generation of services and networks can be confidently implemented and deployed as a new industry standard. The new standard is based on new specifications that effectively enable the principle features, attributes and characteristics of CE 2.0 (, Managed, Interconnected) that are described fully in other documents. CE 2.0 builds on work developed and approved over several years. CE 2.0 encompasses more than twice the number of specifications than were in CE 1.0. The paper looks at looks at the benefits and value for each stakeholder and relates each back to the characteristic of CE 2.0. CE 2.0 not only brings new value but it also brings in new parties to the Carrier Ethernet community. 1.1 Certification The MEF certification has had a profound effect on the adoption of Carrier Ethernet with more than 1000 products and services bearing the MEF Certified Compliant logo. While work on specifications has progressed, the validation of products and services is locked in to tests that are several years old. Therefore, in addition to the benefits of CE 2.0, a new certification program will properly validate and acknowledge compliance of products and services to the current set of specifications defined in Carrier Ethernet 2.0. The certification program for CE 2.0 will be announced 2Q Summary of CE 2.0 Benefits by Stakeholder Stakeholder Enterprise SMB MBH Service Providers Equipment Manufacturers Summary Benefits Efficient utilization of purchased bandwidth: lower cost/bit Standardized, predictable, per Class of Service performance v. objectives Enables comparisons of how providers meet application and Geographical QoS requirements Hosted and high performance apps integrated with Internet over a single connections Enables 4 G migration and enables efficient MBH networks with significant cost savings Ability to reach vast numbers of locations locally, regionally and globally with standardized wholesale E-Access and with predictable QoS delivered via multiple providers but engineered as a single network E-Access standardization simplifies buying & selling of wholesale services, enabling new providers to easily join the CE community at lower cost Enable end-to-end fault manageability within and across networks, lowering support cost Expand addressable market via E-Access Capitalize on investment made in Carrier Ethernet products Certification will streamline testing with service providers = faster time to revenue Page 2 of 9

3 3 Value to Enterprise End Users More efficient utilization of purchased bandwidth than big pipe approach Lower cost per assured bit Expanded availability and faster time to service means uniformity across the global enterprise and faster application turn up: future proofs network Enterprises can more easily evaluate match between their requirements and provider offerings based on MEF standard performance objectives/tiers SLAs can reflect Enterprise application requirements Application orientated services : Performance Objectives A must have for FD, FDV sensitive applications A must have for secure, private cloud applications Reduce application development and management cost Accelerates purchase decisions, reduces procurement costs Avoids duplicate network costs to serve certain apps Meets corp. governance Better QoS, network visibility and control Lower support costs, customer satisfaction Certification: New standard for services in the industry (certification) (applies to each new generation) Lower risk = lower cost (testing etc) Many Enterprises have thus far enjoyed the benefits of migration to Carrier Ethernet. Now, CE 2.0 brings the benefits of service efficiency and application differentiation. Efficient service delivery translates directly to cost savings and quality delivery of high performance applications. For example, Secure SLA-enforced delivery of cloud services alongside corporate applications are all furthered by Carrier Ethernet 2.0. So now you know what performance you can expect for each class supported. For enterprise users, newly defined Class of Service extensions now, for the first time, standardize performance objectives Across four geographic Performance Tiers Over three classes of service and Recommend objectives for a wide variety of application types many of which would be used concurrently by an Enterprise This means that for the first time, Enterprises can validate that the services being offered closely match the performance and QoS requirements of each application and collectively meets the Enterprise s needs. This is of great value to the Enterprise as they plan networks and understand how new applications will function. Further, it creates a sound basis for long term application planning. Efficient operation results from optimizing the use of purchased bandwidth, especially when utilizing the MEF s VLAN-based services (EVPL, EVP-LAN, EVP-Tree) which allows each virtual connection, each of which Page 3 of 9

4 supports multiple classes of service. So now you know what performance you can expect for each class of service and each virtual connection. All these features result purchasing circuits at the lowest necessary cost, with lower risk and with better QoS. Although CE 2.0 Interconnect is a tool for service providers, it greatly benefits Enterprises and small business alike. Carrier Ethernet 1.0 focused on service delivery within a single provider s domain and interconnection between providers was not yet standardized. It effects consistent service delivery to all regional and branch offices via local or regional service providers implementing standardized Carrier Ethernet network connections using standard MEF interconnects and the newly approved E-Access wholesale service. The result is a global ubiquitous service that simplifies Enterprise application delivery, reduces development cost, and greatly speeds availability to new locations. Carrier Ethernet is currently available in more than 100 countries. For the Enterprise and business user CE 2.0 interconnect makes it look like a single service-engineered network avoiding costly, complex delivery and support problems. Cloud applications delivery and data center interconnect are well supported by CE 2.0 However, very active work on dynamic elastic services, management functions to enable automated dynamic provisioning have already started their journey through the technical committee. There are already many Carrier Ethernet cloudbased applications in the market using statically provisioned Carrier Ethernet services. 3.1 Benefits to End users The following summarizes the most common Carrier Ethernet applications, all of which are enhanced by implementing Carrier Ethernet 2.0 Site-to-site access, server consolidation, business continuity/disaster recovery, Enterprise-class cloudbased applications, Internet access, distributed imaging, distributed storage area networks, VoIP, streamed/interactive video, L2-VPNs, virtualization Page 4 of 9

5 3.2 Guidance for Enterprises CE 2.0 provides additional guidance in terms of class of service performance objectives in MEF 23.1 that is of value to both service providers and end-users in the following areas Application Consumer Business Mobile VoIP Data Interactive Video (Video Conferencing) VoIP and Video Signaling Web Browsing IPTV Data Plane? IPTV Control Plane? Streaming Media Interactive Gaming Best Effort Circuit Emulation Grid Computing Telepresence Remote Surgery (Video) Remote Surgery (Control) Telehealth (Hi-res image file transfer) Broadcast Engineering (Pro Video over IP) CCTV Financial/Trading Database Real Time Fax over IP Store and Forward Fax over IP SANs (Synchronous Replication) SANs (Asynchronous Replication) Wide Area File Services Network Attached Storage Text Terminals (telnet, ssh) Graphics Terminals (Thin Clients) Point of Sale Transactions E-Commerce (Secure transactions) Mobile Backhaul System Requirements Page 5 of 9

6 4 Value to Small and Medium Business Users Many of the benefits for Enterprises apply to small and medium businesses. The following are of further interest to small and mediums business. Availability. The new e-access services simplifies new local and regional providers to join the Carrier Ethernet community and make Carrier Ethernet services available to a much wider market of small and medium business Small widely dispersed business can make use Carrier Ethernet Sectors requiring guaranteed performance with security better than broadband Internet (example media or medical apps reaching out to remote collaborating companies) Small and medium business can take advantages of Carrier Ethernet as if they were a large Enterprise Better connections reduced application development time and costs More competitive operations For small and medium businesses, Carrier Ethernet 2.0 s Standardized Class of Service further enables Internet and hosted services to be accessed via a single Carrier Ethernet connection, yet with improved SLA for those hosted services. Page 6 of 9

7 5 Value to Mobile Backhaul Operators and Access Providers The new MF initiative is enabled by the functionality of CE 2.0 to provide significant value to the mobile backhaul industry and specifically to create significant costs savings. In this instance Mobile Operators and Access Providers are effectively end users because the Carrier Ethernet service starts and finishes within the network. Mobile Operators Access Providers Both Performance Objectives, Multiple Classes of services Migration to Carrier Ethernet support Access provider: Better QoS than single Savings for Mobile Operators (lower OpEx) Increased revenue, lower CapEx from the same infrastructure Enable end-to-end fault and performance manageability within Lower support costs a network per Class of service and improved QoS virtual connection CE 2.0 standards are not limited to business services users. It also will positively impact mobile operators. The migration of the mobile backhaul to Carrier Ethernet and 4G build out are well documented and of massive scale. CE 2.0 standards lay the foundation for additional efficiencies and cost-savings for mobile operators through implementation of Mobile-Backhaul-specific performance objectives, packet and network-based synchronization, resiliency performance, and service OAM fault management. Together with the launch of Carrier Ethernet 2.0, the MEF is providing a suite of deliverables that leverage and extend the underlying specifications CE 2.0 for mobile backhaul is anticipated to have significant, positive impact for the 4G/LTE build-out: Savings of 25% or more for Mobile Operators Growth to 2 3 times the revenue for Access Providers from currently deployed infrastructure Achievement of these results while delivering the same or better mobile user Quality of Experience Page 7 of 9

8 6 Value to Service Providers The following summarizes the many benefits for Providers as they act in various capacities All Types Self contained solutions Increase revenue and network efficiency while improving customer experience. Cos creates a much enhanced model for efficient service delivery New market for tier 2, 3 providers with introduction of E-Access Improves business case based on appeal to SMBs reduced barrier to market entry Efficient delivery of new value-added applications such as privates cloud, concurrently with secure reliable apps, Internet Cost savings Reduces barrier to market entry and new revenue Revenue and customer retention Certification provides its own incentive/momentum (applies to any new generation) Early Certification and later becomes table stakes for all Enable end-to-end fault and performance manageability within a network and where a service provider acts as a buyer provides differentiation Lower support costs Extends retail services by buying wholesale services Additional revenue Service Provider as buyer Expand reach with E-Access, faster time to revenue E-Access enables easier purchase from other providers with standardized (and certified) interface Enable end-to-end fault and performance manageability within a network and across networks (also applies to self contained).. faster time to revenue Lower interconnect cost better customer satisfaction, higher availability (SLA) Provider as Seller Leverage investment in existing footprint Revenue, profit New management functions standardize fault management at level not previously possible for services delivered across multiple providers. This enables sectionalization of faults down to individual virtual connections Page 8 of 9

9 7 Value to Equipment Manufacturers This is of course all good news for manufacturers. Carrier Ethernet equipment sales continue to rise; CE 2.0 opens up additional new markets and possibilities to continue that growth trend. Demand for new functionality enables upgrades of existing systems. Expand addressable market via E-Access (esp. access vendors) Capitalize on investment made in Carrier Ethernet products (many already have 2.0 functionality implemented) Increased Revenue Increased demand & revenue at low development cost Certification: (applies to all new generations) Certification creates trust Streamline testing with service providers (Note: if Service providers really execute on this then it would be big plus to Ems) Competitive advantage or table stakes Faster time to revenue. 8 Summary Collectively, the vast number (more that 1000) of technical contributions that have been enhanced Carrier Ethernet over the last several year have resulted new functionality to all of the five attributes that make up Carrier Ethernet. (Standardized services, scalability, QoS, reliability and service management) They have been driven by the work of the Carrier Ethernet community as a result of actual implementation. You are invited to review other companion documents and MEF specifications to examine the best implementation plan for your company. Page 9 of 9

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