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Ethernet Services Deployment and Technology For California Telephone Association Greg Rodgers Sr. Manager, Market Development Agenda Ethernet What is it Why is it important How big is the market Carrier Ethernet Solutions Definitions and applications Ethernet Services Defined (Metro Ethernet Forum - MEF) Ethernet-Line (E-Line) Ethernet-LAN (E-LAN) Ethernet Services and Opportunities 2 E-LAN - Layer 2 VPN E-Line - Ethernet Private Line Dedicated Customer Networks Residential Broadband Copyright 2005 Fujitsu Network Communications December 2005 Ethernet as an Interface A universal “jack” Internet To the network Within the network Easy to increase bandwidth without changing the port itself Single “jack” can support multiple services on the same port Well understood by enterprises and equipment vendors Monster volumes - low cost 3 Routers Video servers Ethernet IP Networ k DSLAMs Data Storage Arrays Soft switch Enterprise Networks Universal Networking Currency for IP > Transport service > Switched service > Internet access vehicle > Infrastructure for residential broadband Copyright 2005 Fujitsu Network Communications December 2005 4 Copyright 2005 Fujitsu Network Communications December 2005 Ethernet Services Forecast Ethernet Services Revenue Forecast $12,000 $0.5B industry grows to $10B in 5 years $10,000 $8,000 $M CAGR of near 50% $6,000 $4,000 $2,000 $0 2004 2005 2006 2007 2008 2009 2010 Source: Ovum-RHK, July 2005 Metro services dominant Intercity services show greatest growth potential Healthy revenue per port, per month 5 US Ethernet Services Market, 2004 E-Line E-Line E-LAN E-LAN metro intercity metro intercity Ports 16,586 2,106 8,988 636 28,305 Revenue ($M) Per port, per month ($) $288.7 $38.0 $155.9 $16.2 $498.8 $1,451 $1,504 $1,445 $2,123 $1,469 Copyright 2005 Fujitsu Network Communications Source: Ovum-RHK, July 2005 December 2005 Total Ethernet Services Utilization ATM, FR, Private Line are large and slowly growing Ethernet services are < 5% of ATM, FR, and PL revenue Important market inhibitors have been Estimated 2005 Service Revenue Lack of QoS capabilities Uniform and powerful management and operations Ubiquity of service offerings Cross-elasticity with high margin legacy services Private Line = TDM-only services Source: Heavy Reading 6 Copyright 2005 Fujitsu Network Communications December 2005 Ethernet Transport Technology Many Ethernet services deliberately utilize traditional transport SONET MSPP still the top choice for Ethernet transport Highly deployed and understood Ethernet capable Equipment used for Ethernet services by % Co-existed with and relied upon traditional transport networks Technologies overlap Source: Heavy Reading E.g., RPR over SONET or MPLS over wavelength 7 Copyright 2005 Fujitsu Network Communications December 2005 Ethernet Service Drivers - Customers Price per Megabit Higher bandwidth for less cost using less expensive interfaces Converged “best-effort” and high-priority services in single connection Dial-able Bandwidth Customer purchases “100 Mbps” facility, pays for 10 Mbps service Service provider scales bandwidth in-service to 20, 30, 50, etc. Mbps Perceived Value of VoIP Voice seen as “add-on” service to Ethernet Customer Needs Are Expanding HIPPA, Sarbanes-Oxley Disaster Recovery/Business Continuity (DR/BC) E-commerce expansion Heightened Network Survivability Requirements Service guarantees Looking To MEF for Certified Carrier Solutions 8 Copyright 2005 Fujitsu Network Communications December 2005 Ethernet Service Drivers - Carriers Competitive Environment CLEC and start-up firms gaining traction with Ethernet-only services Offensive (revenue increase) and defensive (protect customer base) play Carriers Outgrowing Frame Relay Networks Ethernet currently more costly than Frame Relay Differentiated service offerings covers difference Standardized Delivery Solutions VLAN stacking, EoS, GFP, VCAT, LCAS, MPLS, RPR, link aggregation, services interworking Combinations of TDM and Ethernet services Ethernet-over-Copper (EoCu) Reduced complexity for adding new services or customers to network Ubiquity of Service Offerings Further Fuels Demand MEF Services Certification fuels consistency Triple-Play Offering Disruption Residential broadband overwhelms business customer traffic Migration to IPDSLAM 9 Copyright 2005 Fujitsu Network Communications December 2005 “Ethernet” Is Pouring Into Carrier Networks ~10,000,000+ subscribers Dedicated Rings/ Networks Switched Ethernet Services Access services ~100,000 subscribers 10 Copyright 2005 Fujitsu Network Communications December 2005 Carrier Ethernet Solutions Carrier Ethernet Properties Protection • 50ms Protection • No Spanning Tree • MPLS Fast Reroute Scalability • • • • No VLAN Limitation Services Mapped to LSPs Optical Integration Dialable bandwidth Hard QoS Carrier Class Optical Ethernet Service Management • • • • 12 Fast service creation Integrated third party management Customer Network Management Carrier class OAM capabilities Copyright 2005 Fujitsu Network Communications • • • • Connection Oriented Svcs End to End CIR and EIR Guaranteed end to end SLA Traffic Engineered Ethernet Integrated TDM • Seamless integration of TDM • Support existing voice applications • Tested and Proven with large ILECs December 2005 Enterprise and Carrier Ethernet Connection-Less, Contention-Based Routing Basis MAC Address Restoration Spanning Tree Protocol, Fast STP Switch IP Address OSPF, RSVP, etc. Enterprise-centric Stochastic restoration Slower, less predictable Soft QoS Limited scalability Significantly trained personnel Router Connection-Oriented, Reservation-Based Routing Basis VLAN Tag, Stacked Tags VLAN Switch Label Restoration Ring, Redundant & Shared Links, Link Aggregation MPLS Fast Reroute Carrier-centric Deterministic restoration Rapid, predictable Hard QoS Segregated access & core Dramatically improves scalability NEBS, 99.999% reliability MPLS-LSR 13 Copyright 2005 Fujitsu Network Communications December 2005 More Carrier Ethernet Tools TDM Ethernet SONET Heavily embedded Ethernet-aware Standardized interconnect MSPP GigE TDM MSPP MSPP TDM MSPP TDM Ethernet GFP, VCAT, LCAS RPR with Point-to-Multi-Point Converged TDM and Ethernet Multi-Service Provisioning Platform Ethernet WDM Variety of network configurations Wavelength Division Multiplexer WDM SAN Ethernet TDM 14 WDM GigE SAN CWDM DWDM Access and Long-Haul Ethernet “Mux-Ponder” TDM Copyright 2005 Fujitsu Network Communications December 2005 Protection Comparisons NETWORK TECHNOLOGY SERVICE RESTORATION TIME Ethernet Switch with Spanning Tree Protocol (STP) 30 to 60 seconds Ethernet Switch with Rapid Spanning Tree Protocol (RSTP) 1 to 3 seconds Ethernet over MPLS using Fast Reroute Sub-50ms (or slightly more, as the network scales) Ethernet over Resilient Packet Rings (RPR) Sub-50ms Ethernet over SONET/SDH Sub-50ms Layer 1 Protection Switching - Optical Ethernet Sub-50ms Spanning tree remains slower technique Ethernet-over-SONET provides data protection identical to TDM services RPR-over-SONET adds multi-point and statistical multiplexing capabilities MPLS Fast Reroute enables core restoration Optical line switching facilitates Ethernet access systems and WDM Source: Heavy Reading, August 2005 15 Copyright 2005 Fujitsu Network Communications December 2005 A Word About QoS… QoS attributes for all MEF service types Frame delay Frame delay variation Frame loss Typical switching gear provides “Soft QoS” or Statistical QoS Handled on a hop-by-hop basis Ethernet uses P-bits in the VLAN tag header (4096 tags) ‘Priority’ marking: 3 bits – 8 levels Works well for aggregation but limited for core applications IP uses Diff Serv Code Points (DSCP) in the IP header ‘Priority’ marking: 6-bits – 64 levels These techniques work “on average” Connection-oriented protocols use more than priority MPLS/ATM/FR - QoS is associated with the connection 16 Copyright 2005 Fujitsu Network Communications December 2005 A Word About Pseudowires A pseudowire encapsulates protocols into a connection-oriented container Easily multiplexed and transported Correlation: Digital wrapper, IP Tunnel A pseudowire can also be thought of as a kind SONET VT1.5 Bandwidth can be flexibly provisioned (or signaled) QoS can be guaranteed A pseudowire uses the MPLS frame format Placed into an MPLS tunnel for easy transport across an MPLS backbone DS1 Adaptation Function VT STS PW MPLS FR/ATM/Ethernet 17 Copyright 2005 Fujitsu Network Communications December 2005 Ethernet Services Definitions Courtesy of Metro Ethernet Forum (MEF) MEF Service Concept Customer Edge (CE) User Network Interface (UNI) User Network Interface (UNI) Customer Edge (CE) Ethernet Virtual Connection (EVC) Metro Ethernet Network (MEN) Not necessarily a real “connection” Service Attributes Delivery technology UNI: Standard Ethernet interface that is the point of demarcation between the customer equipment and the service provider’s MEN EVC: An instance of association of two or more UNIs that helps conceptualize the service connectivity – frames can only be exchanged among the associated UNIs 19 Copyright 2005 Fujitsu Network Communications December 2005 E-line and E-LAN Service Types Defined by MEF Delivery technology is UNSPECIFIED Point-to-Point EVC E-Line Service used to create Private Line Services Ethernet Internet Access Point-to-Point Layer 2 VPNs E-LAN Service used to create Multipoint Layer 2 VPNs “Transparent LAN Service” Carriers can package services in different ways MEN CE Ethernet access service to data network 20 Copyright 2005 Fujitsu Network Communications UNI E-Line Service type Multipoint-to-Multipoint EVC UNI UNI CE CE MEN Ethernet over transport (SONET/DWDM) Ethernet over switched network CE UNI CE UNI UNI CE E-LAN Service type December 2005 E-Line Services EPL is one point to point service per port EVPL has multiple point to point services per port (service multiplexing) Storage SP Point-to-Point EVCs (dedicated BW) Ethernet UNI Ethernet UNI CE Ethernet UNI CE MEN MEN ISP POP Ethernet UNI CE Internet Ethernet Private Line (EPL) using E-Line Service type 21 Point-to-Point EVCs Ethernet Service UNI Multiplexed Ethernet UNI CE Copyright 2005 Fujitsu Network Communications CE CE Ethernet UNI Ethernet Virtual Private Line (EVPL) December 2005 E-LAN Services EPLAN is one multi-point service per port EVPLAN has multiple multipoint services per port (service multiplexing) VLANs Sales Customer Service Engineering UNI 1 Multipoint-toMultipoint EVC UNI 2 UNI 1 Multipoint-toMultipoint EVCs UNI 2 MEN UNI VLANs 3 Engineering UNI 4 VLANs Sales 22 VLANs Sales Customer Service Engineering Copyright 2005 Fujitsu Network Communications MEN UNI 4 VLANs Sales December 2005 UNI VLANs 3 Engineering Ethernet Services Opportunities Multi-Technology Network Manageable, cheap customer edge device IOF/Regional Network using SONET/DWDM CE MSPP OC-48 RPR CE WDM WDM CE LER MSPP MSPP LER LSR LER Ethernet Switch using EFM LSR core LER access aggregation CE EoCu CE EoCu access network CE CE CE CE Access Network Use “best-fit” technology VLAN stacked tags used for switching and priority within ring/connection Facility protection switching (optical) <50ms, with link aggregation 24 Access Aggregation Combination of L2 switching and aggregation with adaptation to MPLS VLAN (network) tags morph into MPLS hard QoS Core Copyright 2005 Fujitsu Network Communications Label Switch Routers (LSR’s) added as MPLS traffic grows Leverage distance and multiplexing advantages of SONET and DWDM December 2005 Interesting Services Layer 2 Virtual Private Network (VPN) E-LAN using shared bandwidth VLAN-based in access, MPLS in core Settable CIR and EIR; “best-effort” to VoIP “low-latency” service High security End-to-End Quality of Service (QoS) Ethernet Private Line E-Line using dedicated bandwidth SONET and/or DWDM access and core Dedicated Internet Access Single-point LAN extension Remote office integration Mimics performance and ubiquity of TDM private line services 25 Copyright 2005 Fujitsu Network Communications December 2005 Interesting Services Dedicated Customer Rings Wavelength and SONET Layer 1 Mixed services SAN - FICON, ESCON, Fibre Channel TDM - T1, T3 Ethernet - 10/100 Mb in 1Mb increments, Gigabit Ethernet, 10 GigE Geographic limitations Carrier-owned, customer-managed, self-contained network Residential Broadband SONET/DWDM Layer 1 transport FTTx using copper or fiber last-mile Switched digital video over copper (IP TV) or Passive Optical Networking (PON) Massive impacts to core data network 26 Copyright 2005 Fujitsu Network Communications December 2005 Residential Broadband Infrastructure Places New Requirements on Ethernet Residential volumes and bandwidth drive network scalability requirements Video and VoIP drive QoS and reliability requirements 27 Copyright 2005 Fujitsu Network Communications December 2005 Adding Ethernet Services To Existing Networks CE CE CE VLAN Ethernet Capable NE SONET or WDM IOF / Backhaul / Co-Lo Support most or all MEF formats EPL, EVPL, ELAN, EVPLAN CIR EIR Service guarantees NE For Intercity Services ISP VLAN 28 Hard QoS High Scalability Low “first-cost” Rapid restoration SLA-capable As services grow, populate core with MPLS-LSR Copyright 2005 Fujitsu Network Communications December 2005 Fujitsu’s Complete Offering FLASHWAVE® MSPP “Ethernet-capable” FLASHWAVE WDM A-Series Carrier Ethernet 29 FLASHWAVE 6400 Layer 2.5 Migration Edge Services Interworking Copyright 2005 Fujitsu Network Communications Network Management Full Services Portfolio December 2005 Summary Ethernet Is Large and Important … And Growing Universal network currency for IP Significant Competitive Forces Are In Play Making Ethernet a “MustHave” Service Offering The Customer Value Proposition for Ethernet Services Will Continue to Pick Up Momentum Triple-Play Services Will Disrupt Normal Loads on Ethernet Infrastructure Carrier Ethernet Devices Provide Highly Reliable Platforms for Providing SLA-Driven Services Customers Understand and Accept MEF Service Definitions and Will Seek MEF-Certified Carrier Solutions Ethernet Provides Carriers With A New Vehicle for Offering Higher Value Services Adding Ethernet Services Can Begin Slowly and Grow Over Time 30 Copyright 2005 Fujitsu Network Communications December 2005 Copyright 2005 Fujitsu Network Communications, Inc. All Rights Reserved. FLASHWAVE® (and design)™ are trademarks of Fujitsu Network Communications Inc. (USA). FUJITSU (and design)® and THE POSSIBILITIES ARE INFINITE™ are registered trademarks of Fujitsu Limited. All other trademarks are the property of their respective owners. 31 Copyright 2005 Fujitsu Network Communications December 2005