Customer white paper. Carrier Ethernet for Business Delivering L2/L3 Converged Services. Smart Enterprise Access Solutions for Service Providers

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Carrier Ethernet for Business Delivering L2/L3 Converged Services June 2011 Author Patrick De Boeck Customer white paper

About this Whitepaper Integrated management and deployment: Processes and tools needs to be provided to minimize the capital and operating expenditures for L2 and L3 service introduction and roll out. TR-069, CLI and SMNP support is essential. Uplink and media limitations: Service footprints need to be taken into account, including copper and fiber distribution and the evolution of broadband delivery in order to maximize service reach. Ethernet and IP Layer 2 and Layer 3 Services Even if the service is called an Ethernet service, most of the data carried over Ethernet is IP-based. In many cases, providing a simple basic L2 service may be advantageous: for example an Ethernet private line or an Ethernet transparent LAN service between sites or to a data center. Why Ethernet Services? Ethernet is on its way to becoming a global telecommunications service as it is able to be efficiently delivered and supported at attractive price points for all types of customers. Once primarily utilised in local area networks (LANs) within large businesses, Ethernet is rapidly becoming a ubiquitous technology. It can be found in service provider networks, data centers, branch offices and in the home. More and more end-user devices are embracing the technology, including TVs, set-top boxes, broadband internet and household appliances. It has become a plug-and-play technology which allows applications and services to be developed and delivered quickly. Ethernet also plays a critical role in enabling the service provider to move towards a converged network infrastructure that supports multiple services and is becoming the de facto standard for access and transport. According to Ovum, an independent market research company, global revenues for Ethernet services are set to reach $40B by 2014, growing at 17% CAGR. As such, service providers of all types are rolling out services to meet growing demand for greater bandwidth and service scalability at a lower cost per Mbit/s than traditional TDM private-line and data services can provide. Large enterprises are aware of the superior value this technology offers and will readily switch from legacy services. In addition, the flexibility and lower cost of Ethernet services helps service providers to open up untapped or underserved markets, such as small businesses who had previously found traditional private line and data services too expensive. Once rolled out to customers, the ubiquity of the technology enables service providers to up-sell enhanced services or provide multi-service bundles, maximizing revenues and increasing ARPS. Additional revenue lines can be generated by providing Ethernet as a wholesale service to other service providers. One interesting wholesale revenue opportunity is backhaul services to mobile operators for 3G/4G build-outs, servicing the increasing demand for mobile data. Ethernet services are set to reach $40B by 2014, growing at 17% CAGR. 2

Carrier Ethernet Services at a Glance The Metro Ethernet Forum (MEF), as a standard body for Carrier Ethernet, has developed technical specifications to promote interoperability and deployment of Carrier Ethernet worldwide. As such, Carrier Ethernet is now a ubiquitous, standardized, carrierclass service and network, defined by five attributes that distinguish it from familiar LAN-based Ethernet. These attributes are: Standardized services Scalability Reliability Service management Quality of service Service providers are able to provision a broad portfolio of Ethernet services with a variety of topologies, access speeds, application specific classes of services and service level agreements. A typical portfolio of services is shown in the diagram below : Access Devices - a Major Challenge One area that remains a barrier to service innovation and roll-out is the access device, where services are terminated on premise and handed off to the customer. The access device in this context presents a number of challenges to service providers, including : L2 and L3 services delivery The architectural capabilities of the NGN need to be utilized to deliver the broadest range of services in order to maximize return on investment, and increase revenues by moving up the value chain. User experience Managing the user experience is a key requirement for successfully delivering wholesale and retail L2 and L3 services. Service management needs to be strengthened to support the visibility and control requirements of various traffic flows and meet SLAs. In addition, the attributes of Carrier Ethernet services enable legacy frame relay and leased-line services to migrate to Ethernet services with the same quality of service. E-Line Service - used to create E-LAN Service - used to create Ethernet Private Lines (EPL) Virtual Private Lines (EVPL) Ethernet Internet Access Multipoint L2 VPNs Transparent LAN Service Virtual LAN Service 3

Integrated management and deployment Processes and tools needs to be provided to minimize the capital and operating expenditures for L2 and L3 service introduction and roll out. TR-069, CLI and SMNP support is essential. Uplink and media limitations Service footprints need to be taken into account, including copper and fiber distribution and the evolution of broadband delivery in order to maximize service reach. such as IP VPN connectivity combined with Internet Access. The traditional approach to this is to provide one box for L2 services and another box for L3, increasing the capital outlay and requiring additional operational expenditure. With L2 services, an Ethernet Access Device (EAD) at the remote site delivers the L2 services and provides service demarcation and Operational, Administration and Management (OAM) functions. However, a two-box solution (EAD and router) is required where service providers wish to move up the valuechain and deploy L2 + L3 services Ethernet and IP Layer 2 and Layer 3 Services Multiple Access Device Challenges L2 Service Even if the service is called an Ethernet service, most of the data carried over Ethernet is IP-based. In many cases, providing a simple basic L2 service may be advantageous: for example an Ethernet private line or an Ethernet transparent LAN service between sites or to a data center. As core and access networks migrate towards a next generation network (NGN) architecture, service providers are able to deliver a portfolio of products to address the growing demand for faster, flexible and more cost-effective services. During this transition, it is often valuable or necessary to include true IP connectivity at L3. For example, when multiple solutions are required to be delivered to an enterprise, L3 Service Providing a simple basic L2 service may be advantageous for an Ethernet private line or an Ethernet transparent LAN service between sites or to a data center% CAGR. The diagrams above show an Ethernet Access Device (EAD) at the remote site designed to deliver L2 services and provide service demarcation plus OAM functions. Where wholesale Ethernet services are provided to mobile operators, cloud providers and managed service providers (MSPs), service demarcation can become even more cumbersome. 4

Wholesale Ethernet Service and L2 Operational Cost Challenges Minimizing the cost of provisioning and maintenance is key to the profitability of the service. This includes the monitoring of links and connections on an endto- end basis by providing fault management and performance management tools. The deployment tools now common on consumer broadband CPE can add considerable value to an Ethernet service. These can enable the access device to automatically access a central server and download an approved, service-specific configuration. This approach provides for zerotouch deployments. The same class of tools can also provide for rapid reconfiguration and automatic patching or software updates. Wholesale Ethernet Service and L3 User Experience Challenges The perceived quality and performance characteristics of Ethernet services are becoming a major challenge since Ethernet services are equally tangible than legacy services such as leased lines. With leased-line services the customer effectively receives a dedicated connection with well defined characteristics in terms of bandwidth, transmission errors or latency. Whereas Carrier Ethernet services deliver reliable and flexible deliver Ethernet virtual connectivity (EVCs) and a mix of different types of traffic flows with different quality requirements. As a result, it is essential to offer the customer a comprehensive view of their service characteristics in terms of quality, bandwidth, availability, status, statistics, history and last but not least, compliance with SLAs. Collecting and presenting this type of information to customers can be made significantly easier if the access device can be programmed to collect and generate statistics internally and present it over a web interface on the access device itself. In this way the customer has access to this information at all times. However, where service providers wish to provide L3 services there is an issue with provisioning effective Quality of Service (QoS) management with a two-box solution QoS management at L3 is unable to take into account congestion at L2. OAM and service provisioning are key to keeping OPEX costs down for Carrier Ethernet service delivery - as is a shared platform for the delivery of converged L2 and L3 services. 5

The OneAccess Networks Approach Providing a shared platform for L2 and L3services The ONE Series of Multi-Service Access Routers (MSARs) uniquely integrates Carrier-Ethernet capabilities. At the heart of every platform is a high-performance Ethernet switch/router incorporating L2 and L3 forwarding, security and QoS capabilities as standard. This enables both IP and Ethernet managed services with highly differentiated SLAs to be created, demarcated, monitored and controlled, with just one CPE deployment, and at industryleading price points. Use a single device for L2, L3 or a combination of L2 and L3 An example that combines Ethernet with IP is a Direct Internet Access service. Terminating this kind of service on a combined L2/L3 device eliminates the need for installing a separate router on an EAD Ethernet port. This capability is very attractive because the Ethernet service can additionally be used to provide corporate connectivity and Internet access. In-built IP VPN and firewall capabilities enable secure, seamless networking with branch offices and remote users. In addition, an MSAR with integrated Carrier Ethernet capability eliminates the need to certify one access device for IP services and a separate one for Ethernet services. The hardware is common and interoperability tests can be done in parallel for both services on the same access device. OneAccess MSARs support traditional and proven techniques to manage both L2 and L3 services at the customer premise. Customer 1 : L2 services Customer 2 : L3 services or L2 + L3 services Example: Deploying L2, L3 or L2+L3 services from a single platform In-built IP VPN, firewall (Internet access), E-LAN & E-line capabilities enable secure seamless networking with branch offices and remote users. 6

Providing Extensive Performance Management for Flexible SLAs Advanced QoS techniques in the OneAccess platform, such as packet classification, marking/tagging, DiffServ, traffic conditioning, traffic shaping and congestion avoidance ensure the quality of a wide variety of traffic types including IP voice. In addition, embedded measurement probes provide network performance metrics,such as throughput, round trip delays, jitter and loss. OneAccess offers a wide variety of SLA measurement tools to exploit the raw traffic data to give current and historical insights into the customer experience and report this to the operational support systems. This is essential for the effective and simplified provisioning of SLA management for the Ethernet and IP services offered. As such, service providers are able to deliver a performance snapshot of service quality and to define compliance with the SLA. Traffic management, QoS and measurement capabilities enable service providers to offer flexible SLA-based services for their wholesale clients and retail end-user business customer alike. Visibility in the form of immediate status and over different periods (hour, day, week, month). Easily available (e.g. local portal) Customizable (use only data that is relevant) Accessible by standard tools (e.g. web browser or excel) Automatic export to database 7

Integrated Management for Rapid and Simple Service Deployment/ Maintenance OneAccess provides a full range of standardized management tools for maintenance and service provisioning. Full mass customization of the OneAccess platform enables service providers to specify software and hardware configurations, as well as have the product factory-built to order. This removes the cost and delay of pre-configuration by the service provider. A choice of mechanisms, including TR-069, CLI and SNMP are available for the operator to further simplify the provisioning process by automatically installing the correct configuration in the equipment once a connection is made to the network. These standards can also be used to modify configurations or deploy software on a large scale thus avoiding the costs associated with truck-rolls or manual interventions. These zero-touch provisioning and update practices are available on OneAccess platforms today, thus substantially reducing the cost of deployment and maintenance for converged services. Standardized management interfaces TELNET server TELNET client HTTP server HTTPS server SSH Server PING (RFC 792) TraceRoute TFTP server FTP server DHCP Autoconfig SNMP version 1/2/3 Radius/Tacacs SYSLOG (RFC 3164) SNTP (RFC 2030) Element management system Configuration Statuts Statistics Alarm reporting Network View User-customizable web-configurator TR 69 auto-provisioning The OneAccess converged L2/L3 platform enable service providers to specify software and hardware configurations 8

Provides Ubiquitous Access The OneAccess converged L2/L3 platform addresses many of the problems that operators face when trying to deploy Ethernet and IP services on a large scale, especially when these services are deployed over a mix of copper and fiber media within the access infrastructure. The ONE Series products have unique multiple uplink, fiber and copper media capabilities. This enables service providers to seamlessly integrate any first-mile infrastructure, as well as easily migrate their customers to new services over next generation access infrastructure. Unique multi-uplink and multi-media support Seamless integration with any access infrastructure, S.HDSL & EFM on all models Supports migration from legacy to next generation services Carrier Ethernet L3 Platform The OneAccess converged L2/L3 platform is highly standards compliant and is proven to be interoperable with all major Metro Ethernet, MSAN and DSLAM vendors. Business users can be assured that services delivered with the OneAccess platform behave and perform according to agreed specifications and international standards. In addition, service providers benefit from the reduced cost and complexity coming out from a Carrier Ethernet-based service infrastructure. Summary In a swiftly evolving marketplace, L2/L3 converged services represent both revenue opportunities and significant challenges for service providers. The three key issues are the ability to swiftly deploy premium revenue services, manageability and cost. The OneAccess converged L2/L3 platform provides state-of-the-art next generation access devices which incorporate sophisticated EAD, IP routing, security and quality of service capabilities. By using the same access device for the provision of both L2 and L3 services, operators are now able to deploy combined IP and Ethernet managed services to branch offices, including direct Internet access, at industry-leading price points. The complete range of OneAccess converged products are MEFdriven and provide an extensive range of features throughout a single Service-based platform built for L2/L3 service convergence. 9

The open architecture of the OneAccess platform is highly standards-based. This enables service providers to seamlessly integrate any first-mile infrastructure and interoperate with third-party equipment an imperative where multiple services are delivered over the same on-premise platforms. The equipment is capable of delivering Carrier Ethernet value-added services and capable of offering both L2 and L3 services. The OneAccess converged L2/L3 platform is a natural fit for service providers who wish to rapidly innovate, deploy and expand new managed Ethernet services. A OneAccess solution for the delivery of L2 and L3 services over a converged network architecture enables service providers to achieve: Converged Services Checklist Enhanced user experience The OneAccess solution provides comprehensive visibility and control using QoS tools and measurement metrics to support SLAs for a wide variety of services. In addition, it provides hierarchical QoS management which takes into account the L2 congestion status. Simplified certification and interoperability testing A single access device for L2 and L3 services eliminates the need for implementing one CPE for native IP services and another for E-line and E-LAN services. The hardware is common and interoperability tests can be done at the same time for all services. If your intent is to bundle converged services, or allow service evolution to attract and retain customers and create competitive advantage here is a checklist of key decision criteria : Embedded software features to support simple, fast and cost effective delivery of multiples services or service bundles, including : combined L2 and L3 services Ethernet, IP VPN and managed security IP Voice managed PBX, SBC and SIP trunks. Comprehensive management and performance tools to support SLAs Converged service delivery over new or existing infrastructure using one box Single certification and interoperability tests for L2 and L3 platform Zero-touch provisioning and software updates Carrier-grade quality with an MTBF of <30 years Maximized revenues and service margins Service providers can acquire customers though delivery of basic L2 services and easily migrate them to more sophisticated L3 services in the future. This can be achieved remotely from the network operation center and without the need to change an already installed product thus protecting service provider investments. Furthermore, service providers can package a variety of services into service bundles in order to increase ARPS. Significant cost savings Provisioning and managing a single access device for both L2 and L3 services reduces CAPEX, optimizes logistics and reduces operational costs versus a two-box solution. A suite of provisioning tools makes service rollout simpler and embedded OAM and service indicators make it easy to manage and assure services. Accelerate time to market Lower implementation and migration costs enable service providers to accelerate their time to market to reach underserved or untapped markets as well as open up new opportunities. 10

ABOUT us Incorporated in 2001, OneAccess is a leading manufacturer of multi-service routers and carrier Ethernet access devices enabling major telecoms service providers to deliver business-grade managed services profitably. OneAccess supplies routers to over 110 communications service providers including 4 of the top 5 largest telecoms operators in Europe. By using mass customization techniques OneAccess CPE solutions can be precisely tailored to meet the stringent demands of the business managed services market enabling superior performance, management, reliability and services innovation. Smart Enterprise Access Solutions for Service Providers For more information visit www.oneaccess-net.com OneAccess, Pentagone Plaza, 381 Avenue du Général de Gaulle, 92140 Clamart, France Phone: +33 (0)1.41.87.70.00 Fax: +33 (0)1.41.87.74.00 marketing@oneaccess-net.com