Metro Ethernet Webinar

1
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

2
Introduction to Ethernet Services

• A discussion about what enterprises can and
  should expect from Ethernet services in metro
  networks

3
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?

4
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

5
Mark Fishburn

• Chairman of the Board

Vice President, Technical Strategy
6
Colin Evans

• Co-chair, marketing events committee

Business Development and Marketing
7
Frank Brockners

• Chief Technologist, Product and Technology
  Marketing

8
Pat Matthews

• Senior Analyst, Yankee Group

9
Manek Dubash

• Moderator
• Contributing Editor

10
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

11
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

12
Metro Ethernet servicesfor the enterprise

• Mark Fishburn
• MEF, Chairman of the Board
• mark.fishburn_at_spirentcom.com

13
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

14
Critical enabling technical and business
deliverables

• Ethernet as carrier-class transport technology
• Services DefinitionE-Line and E-LAN
• Protection, QoS, OAM, UNI, NNI
• New Opex and Capex quantified business cases

15
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

16
Evaluating the challenges/ opportunities for
Metro Ethernet services
Colin Evans Co-Chair MEF Marketing colin.evans_at_nat
ivenetworks.com
17
Challenges/opportunities for Metro Ethernet
services in the Enterprise

• 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

• 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

18
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

19
Business benefits and applications
20
Enterprise IT initiatives applications
Increasing Productivity
Improving Competitiveness
Addressing Uncertainties
Lowering Costs

• Application Integration extended enterprise
• New eBusiness-applications
• Facilitate better Collaboration
• Triple Play - voice/video/data convergence
• Consolidate IT resource
• Server/Storage/Network

• 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

21
Changing uses of IT and communicationsApplication
moving from LAN to WAN centric
E-Commerce
Virtualization of business processes across
traditional geographic and organizational
boundaries
Supply Chain
Untethered Worker
Workforce Optimization
Enterprises extend sales reach lower ops cost
Enterprises outsource context function
Customer Care
Enterprises link remote/tele- workers
Enterprises achieve efficient effective
collaboration
Enterprises build virtual contact center
operations
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Vertical Market Applications Distributed
Bandwidth Intensive
Retail/ Consumer
Financial Services
Government
Manu-facturing
Media/ Entertain-ment
Education/Research

• ERP
• Supply Chain Management
• E-Learning
• Product data Management
• Collaborative product Design

• Digital publishing
• Digital Media delivery
• Digital asset manage-ment
• Digital archiving

• 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

• Grid Computing
• Imaging
• Visual-ization
• E-Learning
• Multimedia

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Why migrate from other services?
Metro Ethernet

• 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

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Case Study Healthcare Provider

• 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

• Mode of operation before migration
• A local health system with three locations
• Lacking high-speed data connection to each
  facility
• lt10M to all sites currently via leased line and
  frame circuits
• Limited budget and IT staff
• Multiple LAN environments operating independently

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Case Study Healthcare Provider

• 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
Hospital A
METRO ETHERNET
Hospital B
100 Mbit/s
Hospital C
Suburban Analysis Lab
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Metro Ethernet Services

• Mark Fishburn
• MEF, Chairman of the Board
• mark.fishburn_at_spirentcom.com

27
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

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Examples of Service Attributes
Bandwidth Profile Defines the way in which less
than the full physical bandwidth of UNI can
utilized by the subscriber. Committed Info Rate
(CIR), Excess Info Rate (EIR)
Service Multiplexing Multiple EVCs accessible at
a single UNI. Reach multiple destinations across
the MEN via a single UNI, e.g., a Gigabit
Ethernet UNI.
Interworking Function Non-Ethernet services via
an Interworking Function (IWF), e.g., TDM over
Ethernet
IWF
IWF
29
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

30
Market predictions for Enterprise Metro Ethernet
Services

• Pat Matthews
• Senior Analyst, Yankee Group
• PMatthews_at_yankeegroup.com

31
Worldwide Metro Ethernet Forecast
Worldwide Metro Ethernet Revenue Forecast
8,000.00
Metro Ethernet CAGR 50
7,000.00
Forecast Excludes Ethernet Internet Access
6,000.00
5,000.00
Revenue USD Millions
4,000.00
3,000.00
2,000.00
1,000.00
Total Revenue Metro Ethernet PT-PT, PT-MP,
Any-to-Any
0.00
2002
2003
2004
2005
2006
2007
Source Yankee Group
32
Worldwide Metro Ethernet Forecast
Metro Ethernet CAGR 50
Forecast excludes Ethernet Internet access
Source Yankee Group
33
Total FR, ATM, and Local PLvs. Metro Ethernet
Note Metro Ethernet still only 15 of the
market in 2007
Source Yankee Group
34
Ethernets capacity benefitssurpass its cost
savings
Which of the following are Ethernet benefits
compared to traditional data services? (Select
1-5 for each item)
Beneficial (top 2)
Not beneficial (bottom 2)

• 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

Higher capacity
Improved reliability
Scalable capacity
Increased performance
Ability to support new services
Easy IT handoff
Reduced staff / OPEX
Faster provisioning
Reduced capital expenditures
0
20
40
60
80
100
Percentage of respondents (n144)
Source Yankee Group
35
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
  enoughWAN replacement is key for the services
  financial sustainability
• Ethernet will have a significant share of the
  metro market in five to seven years

36
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

37
Agenda

• Over to you
• QA

38
References

• Metro Ethernet Services A Technical Overview
• http//www.metroethernetforum.org/metro-ethernet-s
  ervices.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.h
  tm
• Metro Ethernet Forum Frequently Asked Questions
• http//www.metroethernetforum.org/MEF_FAQ061702_Fi
  nal.pdf
• Yankee Groups Optical Ethernet report
• http//www.yankeegroup.com/public/home/research_sh
  owcase.jsp?ID10480
• An archive of this Webinar can be found at
• http//invite.Mshow.com/signon.asp?Cobrand100use
  rtype0ShowNum13796720