IHS TECHNOLOGY OCTOBER 2015
Multi-Layer Packet-Optical:
The Path to Efficient Networks
TABLE OF CONTENTS
A Long-Overdue Improvement ... 1
The Packet-Optical Vision ... 1
P-OTS Flattens the Network ... 2
Packet-Optical: Flexible and Modern Networks ... 4
Bottom Line ... 5
LIST OF EXHIBITS
Exhibit 1: Network Architecture Before and After Packet-Optical ... 2
Exhibit 2: P-OTS Is Unifying Consumer, Enterprise, and Wireless Networks ... 3
1
Multi-Layer Packet-Optical: The Path to Efficient Networks
A Long-Overdue Improvement
Media and communication services are in a period of rapid change. Most people are experiencing this revolution today in the form of social media, online video, and cloud computing at work and at home. Networks keep getting faster, and this improved infrastructure allows the creation of new applications like cloud storage and cloud computing. Smart people keep finding ways to use faster networks to do interesting things. This resulting unpredictable rise of new applications like large scale cloud computing doesn’t just increase bandwidth demand; it also introduces much greater uncertainty into network planning.
Optical transport equipment paired with separate packet switching equipment forms the fundamental transit infrastructure at the heart of today’s networks. But the architecture of these networks has not changed significantly since the appearance of WDM—the equipment has become faster and cheaper but it is still used the same way.
In fact, a 2004 network engineer from a large telecommunications service provider, if transported to 2014, would not be surprised by the network architecture, other than the higher speeds and capacity. Clearly, service provider network architectures are long overdue for architectural improvement.
This historic lack of innovation in network architectures, combined with greater uncertainty about tomorrow’s requirements, presents service providers with a challenge.
The Packet-Optical Vision
An explosion of communication services, coupled with a more centralized computing model that exploits network connectivity is causing transport network traffic to grow around 30% per year. Areas such as mobile are growing as fast as 78%. This traffic growth is spread among many different areas, as most large service providers operate multiple networks.
In the metro, many service providers operate separate transport and routing domains for mobile backhaul, consumer broadband, and enterprise connectivity. This results in extra equipment expense and inefficiency, such as duplication of protection bandwidth. Plus, most service providers historically separated the optical transport and packet routing into two organizational management groups. It was (and still is) not easy to plan a service crossing multiple network and management layers.
Service provider network architects need a tool set of hardware and software that flattens the hardware, services, and management into a single domain. This is the driving force behind packet-optical transport systems (P-OTS), a convergence technology that helps service providers migrate their network architectures to support the challenges and uncertainty of the future. Packet-optical systems combine the functionality of traditional optical transport systems with layer 2 switching technology, aiming below the higher functionality and complexity of layer 3 routing. This takes the form of a single hardware platform and management interface that can operate on multiple layers of the network. This flatter approach is a contrast to the balkanized and antiquated architectures that have failed to evolve in the past decade, and will be faster and cheaper to operate.
Exhibit 1: Network Architecture Before and After Packet-Optical
This is an exciting time for the transport network. As optical systems evolve to include more Ethernet functionality, the transport network can provide more value and more services than before. In most cases these platforms are capable of delivering Ethernet services at cost points below more expensive edge routers.
Packet-optical technology makes the transport network more valuable since it adds more service functionality, continuing to provide the transparent leased line services it always has while delivering newer Ethernet services at cost points below what the full-featured packet network can do. Many services can be consolidated into the transport network via P-OTS, bypassing the routing layer at many intermediate points.
P-OTS Flattens the Network
As shown, many service providers are trying to move away from operating multiple independent transport networks for different internal customers or service types. They have found that this fragmented approach duplicates capex and opex functions with redundant protection of services, stranded bandwidth, and multiple management groups.
There is also a new source of fragmentation: the last decade was a period of consolidation with wireline and wireless carriers engaging in mergers to increase efficiencies with scale. Though unified in name, often these companies continued to operate separate networks as they slowly found ways to consolidate multiple optical and data transport networks.
It is this need to flatten multiple networks and services which drives the fundamental hardware definition for packet-optical equipment: multi-layer equipment that is capable of performing
3
Multi-Layer Packet-Optical: The Path to Efficient Networks
Exhibit 2: P-OTS Is Unifying Consumer, Enterprise, and Wireless Networks
The metro transport network of today’s service provider provides connectivity for consumer broadband, wireless backhaul, and enterprise services. These networks are often built, managed, and protected separately. But a P-OTS machine with multi-layer capabilities allows future growth in all three of these networks to move to a common hardware and management platform:
Consumer: Support for best-effort statistical multiplexing of Ethernet connections to CMTS, DSLAM, or PON OLTs, eliminating the need for edge routers; able to share transport bandwidth with Enterprises to benefit from potential time-of-day savings
Wireless backhaul: Support for legacy TDM switching and Ethernet private line services for tower connectivity for other providers as well as internal traffic; future support via OTN for potential requirements such as metro CPRI transport
Enterprise and data center: Support for multiple connection types, everything from virtual dark fiber support via OTN to TDM leased line to Ethernet private line with multiple QoS options to layer 2 VPNs
Multiple optical transport systems and carrier Ethernet switches were required in the past to meet these use cases; P-OTS equipment can consolidate all three of these applications. Many operators are targeting this single transport network scenario today; let’s look at our survey data that shows which applications service providers indicate P-OTS are best suited for.
Packet-Optical: Flexible and Modern Networks
Future networks will need to combine multiple layers to serve the needs of consumers, enterprises, mobile networks, and data centers. Different technologies play a larger or smaller role depending on the topology of the network, with features like OTN switching gaining importance in core networks. Other technologies like Ethernet switching play a bigger role at the edge of the network, eliminating the need for some routers—but recognizing the core is better served by dedicated big-iron routers and switches.
Exhibit 3: Feature Placement for Metro-Edge and Metro-Regional P-OTS
Metro-edge and metro-regional P-OTS fill an important role for service providers that have a wide variety of services and networks to manage. These systems are technically advanced hardware and management systems designed to deliver traditional optical transport and switching features while adding Ethernet service functions at cost points below dedicated carrier Ethernet equipment.
There are customers with a straightforward set of requirements who do not need this flexibility: carriers with a single service offering or narrow needs. But for the majority of service providers without the luxury of a simple set of requirements, P-OTS represent the best choice for reducing network complexity while laying a hardware and software foundation for future requirement.
5
Multi-Layer Packet-Optical: The Path to Efficient Networks
Bottom Line
After 15+ years of building transport networks the same way, the time has come to put recent silicon and optical architecture innovations to use. This is particularly true as new services and business models increase uncertainty and make traditional planning more challenging.
New packet-optical systems increase the value of the transport layer by offloading much of the aggregation functions provided in more costly carrier Ethernet and routing systems. These new P-OTS also allow OTN capabilities to be extended into the metro providing a solid foundation for tomorrow’s transport requirements. These functions, joined together in hardware, software, and unified multi-layer management, are the best way for preparing for the exciting yet uncertain future.
Whitepaper Author Andrew Schmitt
Research Director, Carrier Transport Networking IHS
[email protected] +1 408.583.3393
Twitter: @aschmitt
To Learn More
Join us for “Multi-Layer Packet-Optical: The Path to Efficient Networks,” a free webinar presented by IHS, Coriant, ECI, and Fujitsu:
LIVE: Thursday, October 22, 2015
8:00 AM PDT, 11:00 AM. EDT, 16:00 BST REPLAY: Watch on-demand any time
Both the live event and replay can be accessed at:
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