SONET & Ethernet Fork in the Road..Or A Merger? ICC 2002 May 1st, 2002 Andrew Knott VP of Marketing
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1 SONET & Ethernet Fork in the Road..Or A Merger? ICC 2002 May 1st, 2002 Andrew Knott VP of Marketing
2 Page 2 Outline Who is White Rock Networks? Ethernet in the Metro Some (un)conventional wisdom Our conclusion
3 Page 3 1 st.who Is White Rock? Carrier-class Optical Transport equipment for the Metro used by carriers to deliver very high speed services as part of their basic Metro transport infrastructure. 2.5 year old company HQ Richardson, TX 155 people $102M raised to date 1 st revenues Jan 2002
4 We Invented A Lego-Block Family To Serve All Applications At Best-of-Breed Cost Page 4 Multiple individual lego-blocks for each layer/function over time Control Plane: lego-block Glue allows multiple blocks to act as one.ethernet is just the latest service, not the last service
5 Some People Think SONET Isn t Up To the Task Of Delivering Ethernet Page 5 SONET is old and really for voice only? SONET equipment is large? SONET equipment is expensive? SONET equipment is stupid and hard to manage? SONET isn t scalable?
6 Why Doesn t Ethernet Just Replace SONET in the Metro? Page 6 Demand for Ethernet services is increasing Not so much about technology, more about cost Switch/router Ethernet ports cost 30-60% less per unit bandwidth than DS-N or OC-N ports on customer equipment Most service providers are offering (or plan to offer) Ethernet services Services include Internet access, Transparent LAN service etc. If Ethernet is the carrier interface of the future then why not just build an Ethernet based transport network?
7 Page 7 Can SONET Carry Ethernet Traffic? Can SONET be cost effective and scaleable? Yes! Virtual Concatenation on Next-Gen SONET systems allows carriers to build flexible rate pipes across a standard SONET network Allows the carrier to offer fractional Ethernet services Easy to manage and test for large carriers uses what they have Ideal for pipe oriented networks Can Ethernet over SONET (EoS) be interoperable between vendors Yes! EoS standards now being finalized (GFP & X.86) Metro Ethernet Forum may now lead the charge on final standardization So SONET can carry Ethernet but won t Ethernet over fiber still be cheaper?
8 Page 8 Un Conventional Wisdom About Cost Source: BCR Magazine, July 2001 > Ethernet technology is much cheaper than SONET. until you compare real carrier-grade applications Bulking up Ethernet to be carrier-grade adds cost for redundancy, longer range optics etc Also. Implementing Ethernet Transport technology at a major carrier means major retraining and operational costs
9 Page 9 Network Cost - Typical Metro Example $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- Network Build Cost: Internet Access, 150/300 Mbps CIR/EIR Equipment Cost 1-Year Cost (Equip. + Fiber) 3-Year Cost (Equip. + Fiber) Ethernet over SONET Ethernet over Dark Fiber Ethernet Ring Internet Access! SONET virtual concatenation allows cost-effective transport of fractional GbE transport! 10 GbE is still relatively expensive at inter-office distances Network Build Cost: TLS, 150/300 Mbps CIR/EIR Transparent LAN Services! EoS model: physical ring, logical star to Ethernet switch at hub site $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 Ethernet over SONET Ethernet over Dark Fiber Ethernet Ring! SONET OC-48 is costcompetitive with GbE (per unit bandwidth) at interoffice distances $50,000 $- Equipment Cost 1-Year Cost (Equip. + Fiber) 3-Year Cost (Equip. + Fiber)
10 Ethernet in the Metro Today - Our View Page 10 Whatever technology is used for transport in the metro it must support both Ethernet and legacy (DS1/DS3) traffic Overlay networks simply too expensive for widespread deployment in major carriers Introduction of Ethernet over Glass technology into Metro Carrier networks was predicated on significant Capex savings However.. Capex savings (if any) don t seem to be there yet Given near price parity, EoS will become path of least resistance Our View. Ethernet will remain an Interface not a Transport Technology in metro carrier networks
11 Page 11 The Reality Of Today s SONET SONET is no longer for voice only now Ethernet-ready SONET is no longer large. White Rock s OC48 is only 1¾ high! SONET is no longer expensive.. $-per-bandwidth down 75% SONET is no longer hard to manage White Rock added router intelligence Carriers Can Pick Just The Services They Need for Each Customer Location Therefore, we think SONET is here to stay.. and will be augmented with CWDM and DWDM
12 Page 12 Summary Ethernet services will continue to grown in the metro Next-Gen SONET systems now ready and able to carry Ethernet SONET equipment costs continue to fall Ethernet services will not be the end of the road for SONET, merely the next set of services it will enable VLX2020 OC48/OC192 ADM VLX2010 OC48 ADM DS3/EC1 Tributary Shelf Optical Tributary Shelf
13 Thank You!
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