Carrier Ethernet Business Case 2012/02/23
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The Case for
Carrier Ethernet 2.0
Table of Contents
1
Value of Carrier Ethernet 2.0 ... 2
1.1 Certification... 2
2
Summary of CE 2.0 Benefits by Stakeholder ... 2
3
Value to Enterprise End Users ... 3
3.1 Benefits to End users ... 4
3.2 Guidance for Enterprises ... 5
4
Value to Small and Medium Business Users ... 6
5
Value to Mobile Backhaul Operators and Access Providers ... 7
6
Value to Service Providers ... 8
7
Value to Equipment Manufacturers ... 9
8
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
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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
(“Multi-CoS”, 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 2012
2 Summary of
CE 2.0 Benefits by Stakeholder
Stakeholder
Summary Benefits
Enterprise
• 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
SMB • Hosted and high performance apps integrated with Internet over a single
connections
MBH • Enables 4 G migration and enables efficient MBH networks with significant cost savings
Service Providers
• 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
Equipment Manufacturers
• Expand addressable market via E-Access
• Capitalize on investment made in Carrier Ethernet products
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3 Value to Enterprise End Users
Enabled Value
Multi-CoS ManagedInterconnectMore 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
Reduce application development and management cost
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
Accelerates purchase decisions, reduces procurement costs
Application orientated services : 20-25 Performance Objectives
A “must have” for FD, FDV sensitive applications
A “must have” for secure, private cloud applications
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
Carrier Ethernet Business Case 2012/02/23
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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 cloud-based 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 cloud-based applications, Internet access, distributed imaging, distributed storage area networks, VoIP, streamed/interactive video, L2-VPNs, virtualization
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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)
Email
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)
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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.
Enabled Value
Multi-CoS Managed InterconnectAvailability.
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 and medium business can take advantages of Carrier Ethernet – as if they were a large Enterprise
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)
Better connections reduced application development time and costs
More competitive operations
For small and medium businesses, Carrier Ethernet 2.0’s Standardized Multi-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.
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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.
Enabled Value
Multi-CoS Managed InterconnectMobile Operators
CoS Performance Objectives, Multiple Classes of services Migration to Carrier Ethernet support
Savings for Mobile
Operators (lower OpEx)
Access Providers
Access provider: Better QoS
than single CoS
Increased revenue, lower CapEx from the same infrastructure
Both
Enable end-to-end fault and performance manageability within a network per Class of service and virtual connection
Lower support costs
improved QoS
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
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6 Value to Service Providers
The following summarizes the many benefits for Providers as they act in various capacities
Enabled Value
Multi-CoS Managed InterconnectAll Types
Increase revenue and network efficiency while improving customer experience.
Multi-Cos creates a much enhanced model for efficient service delivery
Cost savings
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
Reduces barrier to market entry and new revenue
Efficient delivery of new value-added applications such as privates cloud, concurrently with secure reliable apps, Internet
Revenue and
customer retention
Certification provides its own incentive/momentum (applies to any new generation)
Early Certification and later becomes table stakes for all
provides differentiation
Self contained solutions
Enable end-to-end fault and
performance manageability within a network and where a service provider acts as a buyer Lower support costs Service Provider as buyer
Extends retail services by buying
wholesale services Additional revenue
Expand reach with E-Access, faster time to revenue
faster time to
revenue
E-Access enables easier purchase from other providers with standardized (and certified) interface
Lower interconnect
cost
Enable end-to-end fault and
performance manageability within a network and across networks (also applies to self contained)..
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
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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.
Enabled Value
Multi-CoS Managed InterconnectExpand addressable market via E-Access (esp. access vendors)
Increased
Revenue
Capitalize on investment made in Carrier Ethernet products
(many already have 2.0 functionality implemented)
Increased demand & revenue at low development cost
Certification: (applies to all new generations)
Certification creates trust
Competitive advantage or table stakes
Streamline testing with service providers (Note: if Service providers really execute on this then it would be big plus to Ems)
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.
