the business case for enterprise metro ethernet ralph santitoro director, network architecture...

The Business Case for Enterprise Metro Ethernet

Ralph SantitoroDirector, Network Architecture

Nortel [email protected]

2SUPERCOMM 2003Business Case for Enterprise Metro Ethernet

Contents

• Challenge #1– Cost of Bandwidth Flexibility and Scalability

• Challenge #2– Cost of Network Design and Maintenance

• Example Business Case


Challenge #1 to be addressedInflexible Bandwidth Scalability

Costs• Increasing non-Ethernet service

bandwidth often requires:– New service (step function)

• T1T3, FRATM

– New hardware• new interface or equipment

– New service provisioning • different protocols / technologies

• Often resulting in:– Oversubscribing to meet growing

bandwidth needs

OC-48

OC-12

OC-3

T3

T1

1.5M 45M 155M 622M 2.4G

TDM hierarchy or L2 Service dictates bandwidth increments

and technology

Frame Relay

POS

ATM


Challenge #1 addressed by Ethernet Services

Flexible Bandwidth Scalability Costs

• Increasing Ethernet service bandwidth:– Requires just bandwidth provisioning

– Provision only amount of BW needed

• Same protocol for LAN and MAN

• Lower OpEx and CapEx with Ethernet– 25-40% lower cost than

• TDM, Frame Relay, ATM interfaces1

– 10x lower cost• than high speed SONET interfaces1

– Easier and less costly to meet growing bandwidth needs

OC-48

OC-12

OC-3

T3

T1

1.5M 45M 155M 622M 2.4G

Ethernet provides flexible bandwidth increments using

same technology

Frame Relay

POS

ATM

1GbE

10/100MbE

1 Source: Network Strategy Partners, LLC

Ethernet


Challenge #2 to be addressed

• Cost of Network Design and Maintenance– IT organizations typically have 3 distinct telecom /

datacom groups• WAN / MAN

• Telephony

• Data (LAN + routers)

– Why?• Different technologies / protocols / architectures

– Requiring different skill sets


Challenge #2 addressed by Ethernet Services

• Ethernet Services simplify Network Design and Maintenance– WAN / MAN Ethernet

• Internet access• Inter-company and partner/supplier connectivity

– Telephony IP Telephony application over Ethernet• Telephony treated as another application on data network

– Data (already over Ethernet)• unless you’re still using Token Ring☺

• Lower network operations and support costs– Can utilize a similar skill set– Common protocol and technologies simplify troubleshooting


Example Business Case2

• 1 Large Site with 500+ employees• 4 Medium Sites with 100-499 employees• Applications: Private Data and Internet Access

2 Source: Network Strategy Partners MEF-sponsored business case whitepaper


Bandwidth Growth and Pricing Assumptions

• Bandwidth Growth Assumptions:– Bandwidth demand increases annually at the following rates

for the following applications:• Internet Access: 30%• Private Data: 20%

• Service Pricing Assumptions / Qualifications:– Pricing based on monthly recurring charges only– All service pricing:

• Decreases 10% annually• Includes local access charges

– Distance-sensitive private line pricing based on• 3 mile average local access distance • 20 mile average interoffice distance


Service Requirements Application Service Year 1 Year 2 Year 3Medium Sites

Internet Access1: Private Line 3 x T1 4 x T1 4 x T12: Private Line 3 x T1 4 x T1 4 x T13: E-Line 4Mbps 5Mbps 6Mbps

Private Data1: Private Line 2 x T1 mesh 3 x T1 mesh 3 x T1 mesh2: Frame Relay 2 x T1 3 x T1 3 x T13: E-Line 3Mbps 4Mbps 5Mbps

Large Sites / Data Centers

Internet Access1: Private Line 10Mbps FT3 15Mbps FT3 20Mbps FT32: Private Line 10Mbps FT3 15Mbps FT3 20Mbps FT3

3: E-Line 10Mbps 13Mbps 17Mbps

Private Data1: Private Line 2 x T1 mesh 3 x T1 mesh 3 x T1 mesh2: Frame Relay 27Mbps FT3 30Mbps FT3 T3

3: E-Line 25Mbps 30Mbps 36Mbps


Monthly Service

Cost


Cumulate Cost by Service


Summary

• Enterprises benefit from Ethernet services– Only pay for the bandwidth you need– Low cost Ethernet interface to access service

• Enterprises can reduce OpEx using Ethernet services– Simplified network design and engineering– Utilize common skill set for IT staff


Metro Ethernet Forum References

• Metro Ethernet Services for the Enterprise – Business Case– http://www.metroethernetforum.org

• Metro Ethernet Services whitepaper– http://www.metroethernetforum.org/metro-ethernet-services.pdf

the business case for enterprise metro ethernet ralph santitoro director, network architecture...

Documents

bandwidth demand

cost of bandwidth flexibility

ethernet servicesonly

l2 service dictates

growing bandwidth needsoc

network architecturenortel

private data

new service step functiont1t3