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
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
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
• 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
Evaluating the challenges/ opportunities for Metro Ethernet
services
Colin EvansCo-Chair MEF Marketing
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
• 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
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
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
• 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
Market predictions for Enterprise Metro Ethernet Services
Pat MatthewsSenior Analyst, Yankee Group
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%
Source: Yankee Group
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
Source: Yankee Group
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
Source: Yankee Group
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
• 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
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