Details

The network of the future will be based on an integration of optical networking and IP-centric technologies. How this will come to pass, however, will not be as simple or obvious as it might sound. Currently, IP-centric and optical networking technologies do not dovetail. This largely reflects the dissimilar paths over which these two network types have been evolving. IP-centric technologies have been primarily focused on data but are evolving to handle voice, while optical networking has been evolving from the largely voice-centric technologies of SONET and DWDM to accommodate data communications requirements.

Additionally, there are a number of different technical and philosophical approaches to achieving the optimal infrastructure to accommodate the characteristics of the IP and optical worlds. For example, the choice of centralized vs. distributed architectures, multi-layer networks vs. pure IP-over-optical, optimal use of routing and switching technology, ATM vs. MPLS in the core, and many others. All promise to expand the ability of the infrastructure to accommodate higher and more granular capacity requirements, operate cost-efficiently, and provide the basis for value-added services. As networks converge, equipment segments formerly associated with voice or data networking exclusively will expand their functional reach. However, this equipment-level convergence will occur unequally, entailing winners and losers. For example, as the converged network of the future emerges, will routers, switches, gateways, or hybrid equipment types predominate?

This report addresses these and other related issues including:

• How are IP-centric and optical networking technologies evolving?
• What are the implications of this evolution for equipment vendors offering alternate ways to carry IP over optical networks?
• What equipment segments will successfully accommodate the requirements of the converged network of the future?
• What infrastructure decisions will service providers face?
• What are the relevant CAPEX and OPEX costs for the alternative network architectures to be deployed?
• What is the trade-off between performance and cost in influencing IP/Optical technology adoption strategies?

The report answers these questions by examining relevant technical issues regarding IP and optical technologies, providing a detailed analysis of the implications of these technology alternatives to equipment vendors, and by examining the alternatives faced by service providers. Finally, the report provides quantitative Total Cost of Ownership models of the various architectural alternatives and renders conclusions and actionable recommendations for service providers and equipment vendors.

Benefits to Service Providers

This report provides an indispensable analysis of the alternatives facing service providers in preparing for their future success. In particular it...

• Describes the significant issues and trends relating to the evolution of IP Over Optical technologies and network architectures
• Describes and contrasts in detail the alternatives they can choose from in selecting which technologies to deploy
• Provides an assessment of these technologies, with details on equipment segments and specific implementations by vendors
• Provides both a qualitative and quantitative methodology for choosing among alternatives
• Provides a roadmap for both short-term and long-term success that relates to both business and technology requirements

Benefits to Equipment Vendors

This report is also invaluable to Equipment Vendors, as they design, launch, upgrade and position their products to succeed as building blocks of the next generation network. In particular, it the report...

• Describes the significant issues and trends relating to the evolution of IP Over Optical technologies and network architectures
• Describes and contrasts in detail the competitive solutions they are facing in the market
• Provides an assessment of these competitive technologies, with details on equipment segments and specific implementations by vendors
• Provides input on the requirements and concerns of their service provider customers as the vendors develop and prepare their products for market acceptance
• Provide both a qualitative and quantitative methodology to help them position their products
• Provide them with a roadmap for both short-term and long-term success

No other report addresses all of these issues so comprehensively, from both the equipment vendor and service provider perspectives. This unique report employs multiple TCO models to provide solid, actionable knowledge to drive critical decision-making in a time of increasing risk and capital scarcity.

Table of Contents

1.0 Executive Summary

2.0 Study Overview

2.1 Introduction

2.2 Scope and Objectives

2.3 Definitions

2.4 Methodology

3.0 IP Network Evolution

3.1 IP Networks in 2003: An Overview

3.1.1 Traffic Engineering and QoS

3.1.2 Security

3.1.3 Standards Update – IPv6 and MPLS

3.1.4 VoIP Evolution

4.0 Optical Technology Evolution

4.1 Optical Networking in 2003: An Overview

4.1.1 SONET v WDM v DWDM

4.1.2 Grooming and aggregation

4.1.3 Centralization vs. distribution

4.1.4 Layering Issues

4.1.5 OOO vs. OEO

4.1.6 Standards Update: GMPLS, ANSON, O-UNI and ietf-IPO

5.0 Implications of IP Over Optical: The Equipment Vendor Perspective

5.1 Overview of IP/Optical Equipment Segments

5.1.1 Core and Edge Routers

5.1.2 ATM Switches

5.1.3 Optical Switches

5.1.4 Softswitches, Signaling and VoIP Gateways

5.1.5 Hybrid Solutions

5.2 Evolution of equipment segments

5.3 Which segments will survive and thrive?

6.0 Implications of IP over Optical: The Service Provider Perspective

6.1 Overview of Service Provider Segments

6.2 What do Service Providers need to succeed?

6.2.1 Technical Features

6.2.2 Services, Cost and Profitability issues

6.3 Service Provider IP/Optical Network Strategy Alternatives

6.4 Which strategies will win out?

6.5 Implications for Service Provider success

7.0 TCO Models

7.1 Description of Alternatives

7.1.1 Multi-Layer vs. Single Layer Architectures

7.1.2 Centralized vs. Distributed Models

7.1.3 MPLS vs. ATM

7.2 TCO vs. Other Factors For Success

8.0 Conclusions and Recommendations

List of Exhibits

Chapter 1

Exhibit 1.1: TCO Comparison for Metro Ethernet Alternatives

Exhibit 1.2: Comparison of Backbone ATM to MPLS Migration Strategies

Chapter 2

Exhibit 2.1: NEC IP over WDM Solution

Chapter 3

Exhibit 3.1: MPLS Functionality

Exhibit 3.2: IPSec VPN

Exhibit 3.3: Convergence Architecture

Exhibit 3.4: Cisco Tag Switching and MPLS Evolution

Exhibit 3.5: MPLS and GMPLS Comparison

Chapter 4

Exhibit 4.1: Evolution of the Transmission Architecture

Exhibit 4.2: SONET vs. DWDM Network Elements

Exhibit 4.3: Ciena LightWorks Architecture

Exhibit 4.4: Integration of Functions in the IP and Optical Layers

Exhibit 4.5: Goals of GMPLS

Chapter 5

Exhibit 5.1: Taxonomy of IP Over Optical Products

Exhibit 5.2: Routers and Optical Switches in an IP over Optical Network

Exhibit 5.3: Metro Routing Value Proposition

Exhibit 5.4: MPLS Deployment

Exhibit 5.5: IP and Optical Layer Bandwidth Evolution Comparison

Exhibit 5.6: ISC Model

Exhibit 5.7: ISC NGN Wireline Example

Exhibit 5.8: NGN and IP-over-Optical Equipment Segments

Chapter 6

Exhibit 6.1: Wireline Service Provider Taxonomy

Exhibit 6.2: Legacy vs. NGN Services

Exhibit 6.3: AT&T Network Model

Exhibit 6.4: Metro Ethernet Configuration

Exhibit 6.5: Ethernet Services Attributes and Parameters

Exhibit 6.6: International VoIP Opportunity

Exhibit 6.7: Service Provider Requirements

Chapter 7

Exhibit 7.1: Hybrid Optical Metro Network

Exhibit 7.2: Metro Optical Ethernet Network

Exhibit 7.3: Ethernet Over SONET

Exhibit 7.4: Ethernet Over DWDM

Exhibits 7.5 and 7.6: Optical Ethernet CAPEX and OPEX

Exhibits 7.7 and 7.8: Ethernet Over DWDM CAPEX and OPEX

Exhibits 7.9 and 7.10: Ethernet Over SONET CAPEX and OPEX

Exhibit 7.11: Four Year CAPEX Comparison of Metro Ethernet Technologies

Exhibit 7.12: Four Year OPEX Comparison of Metro Ethernet Technologies

Exhibit 7.13: Four Year TCO Comparison of Metro Ethernet Technologies

Exhibit 7.14: Comparison of IP Transmission Technologies

Exhibit 7.15: Ships in the Night

Exhibit 7.16: MultiService Network Evolution

Exhibit 7.17: Cisco IP Overlay Model

Exhibit 7.18: IP Network Overlay Cost Model

Exhibit 7.19: SIN Model

Exhibit 7.20: Multi-Service Switching Model

Exhibit 7.21: Comparison of Alternatives for ATM/MPLS Migration

Exhibit 7.22: Cost Savings Comparison of ATM/MPLS Migration Strategies

Exhibit 7.23: Converged Network Backbone of the Future

Chapter 8

Exhibit 8.1: Intelligent Control Plane Cost Savings

Exhibit 8.2: Complementary Metro Technologies

Exhibit 8.3: Service Provider Challenges

Executive Summary