metro ethernet webinar

Metro Ethernet Webinar

• Welcome to ‘Business Benefits & Key Applications for the Enterprise’– A discussion about what business benefits

enterprises can and should expect from Ethernet services in metro networks

• When: Thursday 6 November 2003, starts 4pm, BST / 11am EST / 8am PST

• To participate in this Webinar, call: +44 (0)207 663 4862, access code: 140577

Introduction to Ethernet Services

A discussion about what enterprises can and should expect from Ethernet

services in metro networks

Hot topics• Why Metro Ethernet has recently emerged as

the hottest area in the telecoms sector • Why are businesses asking for the benefits

of metro Ethernet?• Main business applications for Ethernet

services• The quest for ensuring QoS • What is the Metro Ethernet Forum (MEF)

doing to co-ordinate standards efforts?

Panellists

• Mark Fishburn, Chairman

• Colin Evans, business development & marketing

• Frank Brockners, Chief technologist, corporate product and technology marketing

• Pat Matthews, Yankee Group

Moderator: • Manek Dubash, Contributing Editor

Mark Fishburn

Chairman of the Board

Vice President, Technical Strategy

Colin Evans

Co-chair, marketing & events committee

Business Development and Marketing

Frank Brockners

Chief Technologist, Product and Technology Marketing

Pat Matthews

Senior Analyst, Yankee Group

Manek Dubash

Moderator: Contributing Editor

Agenda

• MEF Overview: Introduction to ‘Ethernet Services’• Evaluating the challenges/opportunities for Metro Ethernet

services in enterprises • Business Benefits and Applications:

– What applications gain efficiency from Metro Ethernet?

– The business case for Metro Ethernet – why migrate from other services?

– Attributes of Metro Ethernet Services that enable distributed application networking

• Analyst Outlook: Market predictions for Enterprise Metro Ethernet Services

• How the MEF is promoting Metro Ethernet Services

Metro Ethernet servicesfor the enterprise

Mark FishburnMEF, Chairman of the Board

[email protected]

MEF priorities and scope

• MEF Mission: Accelerate adoption of optical Ethernet as the technology of choice in metro networks worldwide

• The primary priorities of the MEF are to define:a. Ethernet Services for metro transport networks

Such services shall be delivered over native Ethernet-based Metro networks and can also be supported by other transport technologies.

b. Carrier-class Ethernet-based metro transport technologies by specifying architecture, protocols and management for Ethernet-based metro transport networks

• Market Objective: Deployment of robust, lower cost, industry standard services that seamlessly enable enterprise applications

Critical enabling technical and business deliverables

Ethernet as carrier-class transport technology– Services Definition…E-Line and E-LAN

– Protection, QoS, OAM, UNI, NNI

• New Opex and Capex quantified business cases

Agenda


services in enterprises • Business Benefits and Applications:






Evaluating the challenges/ opportunities for Metro Ethernet

services

Colin EvansCo-Chair MEF Marketing

[email protected]

http://www.yankeegroup.com/public/home/research_showcase.jsp?ID=10480

Challenges/opportunities for Metro Ethernet services in the Enterprise

• Data traffic growing at more than 200% per year = Spiraling costs

• Network Complexity• Critical applications not

getting network resources • Loss of productivity• Long lead times for

deployment of new applications

• Access Bandwidth limitations

• Specialised networking skills

• Reduced Cost• Lower OPEX & CAPEX

• Network Simplification• Single Protocol end-to-end and

bandwidth flexibility• Performance

• Carrier-grade service for carrying mission-critical applications with Guaranteed QoS/SLA

• New Applications• Enabled by transparent plentiful

bandwidth• Security

• Virtual private networks• Simplified Support

• Familiarity with the Ethernet technology - common skill sets already employed in the LAN

Agenda


services in enterprises• Business Benefits and Applications:






Business benefits and applications

• Application Integration; extended enterprise

• New eBusiness-applications

• Facilitate better Collaboration

• “Triple Play” - voice/video/data convergence

• Consolidate IT resource• Server/Storage/

Network

Enterprise IT initiatives & applications

• Distributed data centers • Improve responsiveness

and availability

• Resource pooling – Grids, SAN

• Business Continuity• Data back-ups / Disaster

recovery

• New IT model• Outsourced/

Outasked/On-demand

Improving Competitiveness

Lowering Costs Increasing Productivity

Addressing Uncertainties

Changing uses of IT and communicationsApplication moving from LAN to WAN centric

Customer Care

Enterprises build virtual contact

center operations

Untethered Worker

Enterprises link remote/tele- workers

Workforce Optimization

Enterprises achieve efficient

& effective collaboration

E-Commerce

Enterprises extend sales reach & lower ops cost

Supply Chain

Enterprises outsource “context”

function

Virtualization of business processes across traditional geographic and

organizational boundaries

Retail/ Consumer

Financial Services Government Manu-

facturing

Media/ Entertain-

ment

• CRM

• Supply Chain Management

• Kiosk

• Multichannel retailing

• Trading partner collabor-ation

• CRM

• E-Learning

• Smart Branch

• Data ware-housing

• Out-sourcing

• eGovern-ment

• Workforce Optimization

• E-Learning

• eCitizen

• Record manage-ment

• ERP

• Supply Chain Management

• E-Learning

• Product data Management

• Collaborative product Design

• Digital publishing

• Digital Media delivery

• Digital asset manage-ment

• Digital archiving

Vertical Market Applications Distributed & Bandwidth Intensive

• Grid Computing

• Imaging

• Visual-ization

• E-Learning

• Multimedia

Education/Research

Scalability

Why migrate from other services?

Value• Less expensive alternative to private

line, FR/ATM communication networks• Enables Enterprises to deploy new

applications quickly & easily with minimal capital investment

• Leverage existing human capital – no new training is required

• Future viability of Ethernet technology• Significant CPE Cost Savings

• Supports scalable bandwidth access – from 1 Mbps to 10Gbps and beyond …

• Simple migration to higher performance without disruption

• Highly reliable carrier-class services with guaranteed performance

• Secure communications for mission critical applications

Flexibility• Flexible, reliable, high-capacity solution

No Rigid Bandwidth Limitations• Provides Flexible connectivity site-by-

site (e.g. Multipoint L2 VPN)• Multiple service classes per application• Allows Enterprises to support new

applications including:- Voice, Video, IP, Multicast etc.

Technology• Based upon Ubiquitous Ethernet

“Plug-and-Play” Technology• Transparent transport simplifies

network architecture• Guaranteed Bandwidth with Ability

to Burst• Clear migration path – leverages

existing Ethernet protocol deployment

MetroEthernet

Case Study: Healthcare Provider

Mode of operation before migration• A local health system with three locations

• Lacking high-speed data connection to each facility

• <10M to all sites currently via leased line and frame circuits

• Limited budget and IT staff

• Multiple LAN environments operating independently

Key requirements• Reliably transport and protect patient data and

high-resolution images (X-rays, CAT scans, and MRIs) between sites and across town.

• Accuracy of image

• Urgency of transfer – “virtually uninterrupted”

• Security (highly personal)

• Scalability

• Picture Archiving and Communication – L-Sping Images are 100 Mbytes and more in size

LL

Suburban Analysis Lab

Hospital A

Hospital B

Hospital C

LL

LL

Case Study Metro Ethernet Solution• Secure, flexible, scaleable, high-speed access

delivery of patient data and medical images

• Attributes can be enhanced: Bandwidth; Service Classes/SLA (QoS); Security (add IDS,...)

• Scaleable architecture that can grow smoothly as applications and demand increase

• Introduce new applications over time

• Hospital locations can communicate among sites and to lab

• Metro Ethernet Solution costs less than one third of Frame Relay

• Metro Ethernet (100 Mbps, 1GbE max)

• TCO (1 yr): $20.4 K, $0.2/Kb/yr;

• compare with FR (45 Mbit/s max)

• TCO (1 yr): $63 K $1.4/Kb/yr

100 Mbit/s

Suburban Analysis Lab

Hospital A

Hospital B

Hospital C

METRO ETHERNET

METRO ETHERNET

100 Mbit/s

Case Study: Healthcare Provider

Metro Ethernet Services

Mark FishburnMEF, Chairman of the Board

[email protected]

Metro Ethernet Services

E-Line Service • Used to create

– Private Line Services– Virtual Private Line Services

E-LAN Service• used to create

– Private LAN Services– Virtual Private LAN Services

Examples of Service AttributesBandwidth Profile:Bandwidth Profile: Defines the way in which less Defines the way in which less than the full physical bandwidth of UNI can utilized than the full physical bandwidth of UNI can utilized by the subscriber. by the subscriber.

Committed Info Rate (CIR), Excess Info Rate (EIR)Committed Info Rate (CIR), Excess Info Rate (EIR)

Service Multiplexing:Service Multiplexing: Multiple EVCs accessible at a Multiple EVCs accessible at a single UNI. Reach multiple destinations across the single UNI. Reach multiple destinations across the MEN via a single UNI, e.g., a Gigabit Ethernet UNI.MEN via a single UNI, e.g., a Gigabit Ethernet UNI.

IWFIWF IWFIWFInterworking Function:Interworking Function: Non-Ethernet Non-Ethernet services via an Interworking Function services via an Interworking Function (IWF), e.g., TDM over Ethernet(IWF), e.g., TDM over Ethernet

Agenda








Market predictions for Enterprise Metro Ethernet Services

Pat MatthewsSenior Analyst, Yankee Group

[email protected]

Worldwide Metro Ethernet Forecast

Worldwide Metro Ethernet Revenue Forecast

0.00

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

8,000.00

2002 2003 2004 2005 2006 2007

Rev

enu

e U

SD

Mil

lio

ns

Total Revenue Metro Ethernet: PT-PT, PT-MP, Any-to-Any

*Forecast Excludes Ethernet Internet Access

Metro Ethernet CAGR*: 50%

Source: Yankee Group

Worldwide Metro Ethernet Forecast

Worldwide Metro Eternet Revenue Forecast

0.00

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

8,000.00

2002 2003 2004 2005 2006 2007

Re

ve

nu

e U

SD

Mil

lio

ns

Total Revenue Metro Ethernet: PT-PT, PT-MP,Any-to-Any

* Forecast excludes Ethernet Internet access

Metro Ethernet CAGR: 50%


Total Worldwide Frame Relay, ATM, and Local Private Line Forecasts vs. Metro Ethernet

67,500.00

68,000.00

68,500.00

69,000.00

69,500.00

70,000.00

2002 2003 2004 2005 2006 2007

Re

ve

nu

e U

SD

Millio

ns

0%

2%

4%

6%

8%

10%

12%

14%

16%

Total Revenue for FR, ATM, and Leased/Private Line

Ethernet as % of Total Revenue

Total FR, ATM, and Local PLvs. Metro Ethernet

Note: Metro Ethernet still only ~15% of the market in 2007


Ethernet’s capacity benefitssurpass its cost savings

0 20 40 60 80 100

Reduced capital expenditures

Faster provisioning

Reduced staff / OPEX

Easy IT handoff

Ability to support new services

Increased performance

Scalable capacity

Improved reliability

Higher capacity

Percentage of respondents (n=144)

Beneficial (top 2) Not beneficial (bottom 2)

Which of the following are Ethernet benefits compared to traditional data services? (Select 1-5 for each item)

• 80% of respondents rank scalable and higher capacity as best benefits of Ethernet

• 62% rank cost savings as best benefit

– 7% say savings is not a benefit

• Reliability and performance ranked high, too


Conclusions

• Metro Ethernet today is where IP VPN was three years ago: services need to be clearly delineated, standards need to be solidified, and customers need to understand the ROI

• Transition to this technology will need to be painless at every step• Customers need to understand that they will not have to migrate

again in two years • In the long run, EPL and EIA will not be enough—WAN replacement

is key for the service’s financial sustainability• Ethernet will have a significant share of the metro market in five to

seven years

Agenda








Agenda

Over to you:

Q&A

References• Metro Ethernet Services – A Technical Overview

– http://www.metroethernetforum.org/metro-ethernet-services.pdf

• Metro Ethernet Networks – A Technical Overview– http://www.metroethernetforum.org/PDFs/WhitePapers/metro-ethernet-

networks.pdf

• Metro Ethernet Case Studies– http://www.metroethernetforum.org/ME_CaseStudies.htm

• Metro Ethernet Forum Frequently Asked Questions– http://www.metroethernetforum.org/MEF_FAQ061702_Final.pdf

• Yankee Group’s Optical Ethernet report– http://www.yankeegroup.com/public/home/research_showcase.jsp?ID=10480

• An archive of this Webinar can be found at– http://invite.Mshow.com/signon.asp?Cobrand=100&usertype=0&ShowNum=137967%20

metro ethernet webinar

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