The Strategic Imperative of an Ethernet Metro Aggregation Network

Executive Summary
The broadband revolution is in full swing, dramatically affecting how services are offered and consumed. Enterprises are adopting virtualization, cloud computing, and Software as a Service at a rapid pace and using VoIP and multimedia collaboration tools widely. These changes have increased network traffic to and from application-hosting service providers and among enterprise locations, with IP or Ethernet VPN services and infrastructure quickly replacing Frame Relay and ATM. On the consumer side, simple Internet access for email and Web browsing has morphed into mature triple-play service offerings. Telephony service is migrating to VoIP, while television service is delivered to the end-office or customer premises over IP. Finally, 3G and 4G wireless networksand user-friendly devices such as the iPhonehave increased the demand for IP-based mobile data and video services significantly. Together, these trends are causing IP and Ethernet traffic to grow approximately 40 percent per year. Unfortunately, by 2010, broadband and wireless service revenues are projected to grow only 10 and three percent respectively, as illustrated in Figure 1. Service providers must better monetize this traffic growth while optimizing the service delivery architecture, and controlling both Capital Expenditure and Operating Expenses (CAPEX and OPEX) for rapidly growing and evolving IP and Ethernet services. Optimizing with an Ethernet Metro Aggregation Network (MAN) In the future, virtually all IP and Ethernet traffic will enter the service provider network over Ethernet, either directly at the customer demarcation device or at the uplink of the broadband access node (DSLAM, PON-OLT, CMTS or wireless base station).
Traffic keeps growing...
Consumer Enterprise

Benefits
>

Converges all IP and Ethernet services for all customer types and locations onto a common aggregation network Offers a broad, integrated Carrier Ethernet Service Delivery Portfolio for best network fit Provides deterministic, reliable, and cost-effective packet aggregation and transport between the enduser and the metro hub office Helps optimize the utilization of and lower the spend on IP/MPLS routers Provides True Carrier Ethernet for best-in-breed scalability, flexibility and resiliency Features low-touch operations, making it just as easy to deliver 1,000 Ethernet-based services as it is to deliver ten

>

>

>

>

>

But revenue growth is slowing

41%

Broadband Wireless
30%

134 Tb/s
33 Tb/s

Wireline

66 Tb/s
10 Tb/s 101 Tb/s 56 Tb/s 4% -1% 13% 13%

20%

7% -3%

10% 3% -5%

2007

2011

2004

2006

2008

2010

Source: McKinsey & Company

Source: Yankee Group and Pyramid Research

Figure 1. New services and cost containment can combat slower revenue growth
W A S D P

Application Note

The Strategic Imperative of an Ethernet Metro Aggregation Network

Additionally, low cost per bit and the ability to scale bandwidth continually have made Ethernet the interface of choice on all nextgeneration packet network elements, such as switches, routers, and IP application/content servers. Wherever practical, Ethernet should serve as the networking technology, not just an interface, for the same reasons. To establish whether use of a Carrier Ethernet switch is more practical than an inherently highercost IP/MPLS Carrier Ethernet switch-router, operators must determine where an IP router is absolutely necessary.

SERVICE

ACCESS

METRO AGGREGATION

METRO-CORE

BACKBONE

OTHER METROS

EO

Hub

Typical Business + Residential LEC mix

90%(+/-5%)

IP-Based

80% 1%

17%

2%

Mobile BH (T1/E1, ATM, Ethernet)

100%

10%(+/-5%)

Ethernet

25% 10% 65%

IP Service Edge Aggregate traffic reach

100%
No reason to route here

98%

18%

3%

The percentages in Figure 2 Figure 2. Traffic distribution of growth-stage packet services delineate the sources of end-user service traffic for each of the three main IP/Ethernet service categories: > Service creation and local switching of intra-metro Ethernet IP services (IP-VPN, Internet access, VoIP, IPTV), business services mobile/wireless backhaul (transport to/from the wireless operators offices), and business Ethernet (L2-VPN). In > Aggregated Ethernet handoff of all IP and inter-metro aggregate, over 98 percent of all end-user traffic comes from Ethernet business services to the metro-centralized IP/MPLS servers or other end-users located at or beyond the metroservice edge router centralized IP service edge or metro hub officeat the video Cienas Ethernet MAN Solution headend, the Internet at large (accessed through a Tier 1 ISP peering at a metro core office), or another metro area. Therefore, the main objective of the metro access and aggregation network is to provide deterministic, reliable, and cost-effective packet transport between the end-user and that metro hub. Carrier Ethernet has the necessary and sufficient tools to fulfill this task, especially since IP routing is not necessary there; the one percent of IP traffic sourced from another local end-user can be aggregated to and routed at the hub for minimal incremental cost. While IP/MPLS routers could perform this mainly aggregation role, the added capabilities of these routers are unnecessary, complex, and costly. The Ethernet MAN must therefore provide the following (see Figure 3):
>

Source: Ciena & Network Strategy Partners analysis of Vertical Systems Ovum, Yankee, FCC, USTA, AT&T Labs and Columbia University data

Ethernet demarcation to IP/Ethernet business services customers and active-Ethernet residential broadband customers Ethernet UNI to all other residential broadband access nodes, as well as Ethernet-enabled wireless base stations and access points One or more tiers of Ethernet aggregation of all business, residential, and wireless backhaul traffic
2

Cienas Ethernet MAN solution allows service providers to converge all IP and Ethernet services for all customer types and locations onto a common MAN. Unlike aggregation solutions built using a conglomeration of disparate Ethernet products, basic Ethernet technology, or a proliferation of IP/MPLS switch-routers, Cienas solution is based on the broad, integrated Carrier Ethernet Service Delivery (CESD) Portfolio of purpose-built service delivery switches with True Carrier Ethernet attributes. These switches provide comprehensive management, control, and data plane advances, above the minimums defined by standards development organizations such as the MEF, IEEE, and ITU. These capabilities enable service providers to realize new levels of speed, creativity, operational scalability, and reliability in the delivery of Carrier Ethernet-based business, residential, and transport services, while containing the cost and complexity associated with IP/MPLS. According to CIMI Corporations analysis of operator costs, about 18 cents of every revenue dollar is spent on capital equipment, and about 38 cents on network and service operations. To minimize CAPEX, the Ethernet MAN is best built using Carrier Ethernet switches rather than IP/MPLS switch-routers since the former cost approximately 40% less.

>

>

The Strategic Imperative of an Ethernet Metro Aggregation Network

Ethernet services management system. Business This streamlining provides Services End Office Metro Hub Office Access (or cable D-Hub) (or cable headend) operational efficiency and consistent system and service implementation Inter-metro traffic IP/MPLS across all Ethernet access Broadband and aggregation applicaTriple Play Service or Metro Active Edge tions. The benefits of such a Router Ethernet DWDM consolidation include rapid, automated implementation DSL/PON/HFC Broadband access node of the latest standards-based Wireless Ethernet technical advances Backhaul across all platforms, and Ethernet MAN elements improved efficiency and cost savings from a common Base station or Access Point deployment and service provisioning model. The Figure 3. The Ethernet metro aggregation network switches also allow harmonized integration of any legacy IP/Ethernet Carrier Ethernet also has the potential to provide 12 to 44 access segments through flexible address, class-of-service, percent lower OPEX than IP/MPLS in the metro, yet those and encapsulation translations. All this harmonization savings can not be realized fully if the network employs a inherently provides economies of scope. The more services, disparate set of Ethernet access devices and aggregation customer types, and locations served with a common network switches from a wide range of original equipment operating model, the greater the return on investment. manufacturers. Although all MEF-certified Carrier Ethernet The Rich, Dynamic Metro Network elements must deliver certain common service and interface attributes to allow interoperability, each vendor uses different The advantages of a common model have become critical in techniques and controls. In addition, each element comes with an age of uncertainty characterized by: its own element or network management system, resulting in > Almost-daily application/content releases from an everdisjointed operations. The result is that a heterogeneous set growing list of new providers of Ethernet elements obstructs differentiated service creation and rapid, cost-effective service delivery. > Indirect user-to-application access through multiple tiers of

Customer Premises

Cienas CESD portfolio is comprised of Carrier Ethernet service delivery and service aggregation switches (see Figure 4). Beginning at under $500, the service delivery switches feature a variety of 10/100 Mb/s, Gigabit Ethernet (GbE), or 10GbE port-count and feature package options to fit any size business, multi-tenant office building, or cell tower. These switches may be placed inside customer premises, while environmentally hardened versions may be situated on utility poles or the sides of buildings. The service aggregation switches provide cost-effective FE/GbE/10GbE packet aggregation to fill the transport facilities within both the metro access and aggregation tiers, and ultimately minimize the number of IP/MPLS router ports with which they interwork. These switches may be placed on utility poles or in business parks, outdoor telecom cabinets, and central offices. These service delivery and aggregation switches represent a unified portfolio that handles all IP and Ethernet services using a common service-aware operating system and
3

loosely associated network providers throughout the world

>

Customers who want access from anywherehome, office, and on the gorelating to providers through new business models

Cienas Ethernet MAN solution incorporates the companys True Carrier Ethernet advancesextensions of the MEFs basic Carrier Ethernet attributes of standardized services, scalability, service management, reliability, and quality of serviceto enable a service-driven metro network that can take advantage of these trends. Cienas solution allows bandwidth to be segmented for tight resource control per service, customer, and/or application class, and incoming traffic to be richly classified based on Layer 1-4 parameters for granular quality-of-service treatment. Hierarchical performance monitoring and usage measurements allow bandwidth monetization and Service Level Agreement (SLA) assurance. True economies of scale and scope for the Ethernet MAN come from consistent, end-to-end, automated instrumentation

The Strategic Imperative of an Ethernet Metro Aggregation Network

Ethernet Services Manager

Home Small Business Wireless Backhaul Small Business Multi-Tenant Office Building Mid-size Business Large Business

Small Outside Aggregation site

CO Aggregation and service switching

Large Outdoor cabinet Aggregation site

a common service-aware operating system

> > >

Convergence: All services originate and aggregate as Ethernet Coverage: Broad product range for best network fit Low Touch: Automated device and service activation

> > >

Differentiable: Rich classification and engineering of bandwidth Carrier Class: High resiliency and detailed measurements for service assurance Interoperable: Between any legacy Ethernet structure and the IP/MPLS domain

Figure 4. Cienas Ethernet MAN solution

of these capabilities on the CESD network elements through the switches associated Ethernet Services Manager (ESM) software system. The ESM allows operators to create standard device configuration files and associate the appropriate file with the particular service delivery switch to be shipped to a new customer or installed at a new cell site. When the device is connected by the customer or field technician, its IP address and profile are auto-configured from network servers. This automation improves the speed and accuracy of device turnup and eliminates the need for expensive, highly-trained technicians. The ESM also allows creation of a broad menu of differentiated service templates by creatively combining the wealth of traffic classification features enabled by the common service-aware operating system. After being autoconfigured, the devices are auto-discovered by the ESM and added to the existing network topology. At that point, administrators can point and click on service endpoints and run a provisioning wizard to create Ethernet Virtual Connections (EVCs) and apply the appropriate service template to the EVCs. As end-user service or Ethernet

transport infrastructure requirements evolve, upgrading traffic management at each service delivery or aggregation switch is as simple as modifying the handful of service templates. Rather than a truck-roll to each site or device-by-device remote configuration, the appropriate service template is pushed out to update all corresponding devices automatically.

Summary
Ciena is the Ethernet MAN specialist, with 100,000+ CESD elements deployed at more than 100 customers in over 25 countries. As the specialist, Ciena enables network operators to deploy an integrated Ethernet access and aggregation network that will converge all packet-based servicesmaking it just as easy to deliver 1,000 Ethernetbased services as it is to deliver ten. This facilitated service delivery is made possible by Cienas True Carrier Ethernet innovationswhich provide best-in-breed service scalability, flexibility, and resiliency with low-touch operationsand the companys ten years of Carrier Ethernet experience helping service providers optimize and transform the metro network for next-generation services.

Specializing in transition to service-driven networks to help you change the way you compete.

1201 Winterson Road Linthicum, MD 21090 1.800.207.3714 (US and Canada) 1.410.865.8671 (outside US) +44.20.7012.5555 (international) www.ciena.com

Ciena may from time to time make changes to the products or specifications contained herein without notice. 2009 Ciena Corporation. All rights reserved. AN040 3.2009