eBusiness and its challenge LAN MAN Internet Backbone
for the enterprise executive iS
Successful eBusiness implementation is iS
one of the primary challenges facing
enterprise executives today—how to staff iS
it, how to distribute it, how to deliver
it, and how to maintain it. eBusiness Gigabit Megabit Terabit
includes conducting eCommerce and
servicing customers over the Internet as To realize the promise and rewards of eBusiness, enterprise managers
well as interacting with suppliers. These require a radical new approach to traversing the Metropolitan Area
uses of the network are critical to oper- Network (MAN) and addressing its current bottleneck.
ating the business.
Innovative technology solutions, like being first to market equates to competi- user can consume that amount of capacity.
Optical Ethernet, are emerging to address tive advantage and ultimately results in Optical technology can now provide
these challenges giving enterprise a leadership position for an enterprise. 10 gigabits on a single lambda and
executives the means to excel in the 160 lambdas over a single fiber for long
Since eBusinesses are always “open,” the
eBusiness age. distance and core networking services.
capability to add, delete, and change
With the boom of new applications, all
Significant advances in technology usually services quickly and seamlessly is an
of this bandwidth can be put to good
drive changes to existing computing ongoing challenge. Today’s best-effort
use by today’s enterprises. However, in
models. This paper assesses the capabil- Layer 3 networks are failing to meet all
order to enable the new eBusiness services
ities of the current enterprise-computing of the demands for real-time applications,
that run on high-speed, high-bandwidth
model in meeting today’s eBusiness such as IP telephony, desktop and web
networks, enterprises need to intercon-
requirements. The paper also provides an collaboration, and video conferencing.
nect their gigabit LAN backbones to
introduction to new high-performance Compounding the situation is the lead-
each other as well as with the Internet.
services, delivered through Optical time that service providers need to
Ethernet, which will help enterprise exec- fulfill requests for additional network While growth has driven the LAN to
utives to realize their eBusiness vision. services or changes in service to expe- gigabit Ethernet speeds and to fiber optics
dite delivery of these applications. in the Wide Area Network (WAN),
access speeds in the Metropolitan Area
Time to service—How eBusiness With Optical Ethernet networking,
Network (MAN) are still mostly in the
success is measured critical services can be rapidly deployed
megabit range. MANs, originally built
How well an enterprise adapts to change in response to an enterprise’s needs.
for voice-centric traffic, are not robust
and how quickly enterprise executives enough to meet the gigabit requirements
can deploy the latest services and applica- Contending with the of today’s enterprises in a data-centric
tions for their customers are new criteria bandwidth bottleneck world. Under the current MAN infra-
against which businesses are now being structure (which is SONET-, ATM-,
Bandwidth in the Local Area Network
measured. In many industries, time-to- and frame relay-based), implementing
(LAN) has exploded. Five years ago, fifty
service is a strategic weapon where next-generation services can be difficult.
users shared 10 megabits. Today, a single 3
Even as the residential community is Rethinking the client/server prise’s requirements for communications
improving performance (Ethernet via and networking models services grow, the entire computing
ADSL or cable modem), the enterprise With the advent of a multitude of data- and networking environment becomes
customer is often still restricted to intensive applications associated with more complex, more expensive, and
traditional interfaces, such as DS0 and the Internet, including eCommerce, harder to operate and maintain.
DS1. To realize the rewards of eBusiness, Customer Relationship Management
enterprise managers need a radical new (CRM), third-party interfaces with How have the enterprise computing
approach to traversing the MAN and supply chain partners, and Network and networking models changed?
addressing its current bottleneck. Attached Storage (NAS), the current Yesterday’s network design paradigm,
client/server computing model and its the “80/20 rule,” no longer applies. In
Staffing—A critical shortage supporting communications networks the past, 80 percent of the network
are becoming overloaded, increasingly traffic stayed within the LAN, and only
With the push for more and more
complex, and expensive to implement 20 percent flowed beyond the enterprise.
processing, the demand for skilled
and operate. Enterprise executives may Enterprise traffic consisted mostly of
computing resources is likely to continue
need to rethink their approach and look electronic mail and shared applications.
to outpace their availability. The size
for a long-term solution that maximizes Servers were usually local, and any
and complexity of enterprise computing
return on investment and that satisfies traffic that left a site went to a legacy
environments, plus the networks that
strategic business requirements. Consider computer for database and processing
power them, drive an almost insatiable
the following: applications.
demand for Information Technology
(IT) talent. In the past year, there were
With the growth of eBusiness, multi-
over 800,000 IT jobs that remained What drives IT spending patterns? media applications, video streaming,
unfilled, and that number will continue The client/server model evolved because and real-time video conferencing, the
to climb as enterprise networks grow networking between branches and traffic patterns are changing. More and
and become more complex. corporate offices was slow and expensive. more traffic is leaving the local enterprise
As a result, enterprise executives need Today, applications and data continue network and is traversing the MAN
to do more with the resources that they to be distributed to the user. Enterprise and beyond to reach its destination. In
currently have while leveraging the latest computing systems push data to users’ fact, the old 80/20 paradigm is on the
technological advances that will help to desktops via local and regionalized servers way to reversing itself completely so that
drive their businesses forward. Many that are located all over the network. 20 percent of the traffic is site-centric,
managers are also under intense pressure These servers must be configured, oper- while the remaining 80 percent leaves the
to hold the line on IT spending while ated, and maintained at each location by originating enterprise site and traverses
facing an unprecedented growth in skilled technicians. In addition, IT external networks.
user computing and communications departments need to support existing,
requirements. legacy computers and applications,
including SAP, inventory management, A new standard is needed
Optical Ethernet can provide solutions and databases of all sorts, in potentially Instead of bringing the data to the
that help executives manage the staffing thousands of locations—all of which users by deploying even more servers
challenge while providing significantly must be interconnected. As an Enter- across the network and requiring more
more capability to the enterprise network.
connections with costly services and Optical Ethernet enables service providers to offer enterprise customers
personnel to support them, enterprises these leading-edge solutions that break through the bandwidth bottleneck
can leverage their networks to bring the to achieve successful implementation of eBusiness solutions.
users closer to the data, which is central-
ized in one or more locations. To
Why it is important to
accomplish this, more bandwidth and
Name of service Description enterprise executives
higher speeds will be demanded from
the network to support the text, graphics, Optical LAN Connectionless LAN extension Maximizes resources by
and streaming video that users want and services across the MAN and WAN extending the LAN across
need. By combining Ethernet with fiber to other sites with traffic the MAN/WAN
optics, this new model can be achieved.
Internet access Internet, Intranet, and Extranet High-speed, connectionless
services access access to the Internet; seamless
What is Optical Ethernet? communication
Optical Ethernet combines the power of
Ethernet and Optical technologies to Wide area Extends the LAN across the Enables seamless, end-to-end
extend corporate business applications connectivity metro and long-haul networks connectivity
across the metropolitan, the regional,
and the wide area networks providing Multiservice Provides voice, video, and/or Inherently reliable and efficient;
high-bandwidth, high-reliability, and transport services data over the same line provides a single point of access
high-performance. for all traffic and allows for
Ethernet is the logical choice to begin
the transformation of the MAN from a Outsourced Includes services, such as: Value-added services that enable
bottleneck to a strategic component of network services • Optical routing for Intranet an enterprise to consolidate
and Internet operations, simplify management,
the eBusiness success formula because and free resources to concentrate
Ethernet: • NAT/Address management on core competencies
• Security management
• Has connected corporate networks • Enabled outsourced applica-
within buildings for over 25 years tions, such as storage
networking services and
• Is already present in over 90 percent disaster protection
of businesses today
• Is a well-known, mature technology
• Can scale from megabits to gigabits
• Is already resident on most
computers sold today
Ethernet uses a well-understood stan- Internet
dards-based technology, Virtual Local
Area Network (VLANs), to implement Phase 1
high-performance services. Ethernet is
connectionless, protocol independent
and, as a Layer 2 technology, it eliminates
the need for the complex service configu-
ration and conversion associated with
running Layer 3 over multiple connec-
tion-oriented Layer 2 services. Phase 2
Optical technology, which is already Ring
successfully deployed in Internet back-
bone networks, offers these additional
benefits to the Ethernet networks that
enterprise managers already know
• Simplified networking Optical
• Quality of Service (QoS)
• Security In this example, Optical Ethernet technology enables enterprise managers
• Reliability to move routers to the edge of the network where they add the most value.
Simplified networking via an optical ring or point-to-point Who owns the enterprise router and
Because it operates at Layer 2 instead connection to the central site where the where it is located depends on the enter-
of Layer 3, an Ethernet-based network routing then takes place. prise’s business strategy. For example,
is, by its nature, simpler to operate, faster the equipment and the central site can
Using a centralized router simplifies the
to implement, and easier to maintain. be owned and operated by an enterprise’s
enterprise network and can result in
telecommunications service provider.
Optical Ethernet technology enables significant cost savings as individual site
The enterprise can outsource Layer 3
enterprise managers to move routers to routers are eliminated, as well as the
routing, including any traffic that trav-
the edge of the network where they add complexity and cost of operating and
erses the Metropolitan Area Network
the most value. Instead of requiring a managing them. Only LAN-to-LAN
(MAN) to a service provider. This
router at every site connected to the connections and Internet traffic are
allows enterprises to realize savings in
network, one central site houses a single passed through enterprise routers. All
staffing, hardware, floor space, technical
enterprise router, and all Ethernet traffic local traffic stays within the less
training, and other IT budget items.
that accesses this enterprise router travels complex Layer 2 network.
An Optical Ethernet network can provide
unprecedented scalability for metropol- Burst Space
itan area networks by enabling enterprises
to choose bandwidth increments from
one megabyte to ten gigabits, depending
on their needs. Some service providers
offer services that allow enterprises to
provision additional bandwidth-on-
demand to accommodate uneven or
Customer 1 Service
bursty traffic flows. Consuming band-
width on a “just in time” basis can
eliminate an enterprise’s need for fixed-
cost leased lines, which offer only a Service
fraction of the bandwidth available Customer 5 Provider 2
with Optical Ethernet usually at 2
substantially higher cost.
Quality of Service (QoS) With Optical Ethernet, enterprises buy only the bandwidth they need.
Unlike traditional Ethernet, Optical
Ethernet is not a best-effort-based tech-
nology. When implemented as a Virtual determine the traffic prioritization. walls, Network Address Translation
Private Network (VPN), Optical Ethernet Optical Ethernet supports marking of (NAT), and encryption to protect their
provides the means to handle the all traffic at the network edge using the data without any changes.
intersite eCommerce traffic required by 802.1p standard.
today’s enterprises. Such a VPN can
provide guarantees for mission-critical
Security Optical Ethernet is inherently more
applications, including sales order and
inventory management, and enable the Site-to-site access is inherently more reliable since it combines the strength
enterprise to realize sales revenue in a secure using fiber optics technology and simplicity of Ethernet with the
timely manner. because, by default, photonic technology robustness, the resiliency, and the “five
is more difficult to compromise or pene- nines” (99.999) reliability that is proven
For example, the enterprise manager can trate than are packets flowing through with optical networks. Carrier-grade,
control the flow of traffic simply and a traditional, leased line. self-healing equipment adds to the
globally by using a fixed service to map inherent reliability of the fiber optics
all of the enterprise traffic by the type of Because the Optical Ethernet services can
technology so a service provider can
service. A classification filter would then extend beyond the corporation, enter-
accommodate “always open” eBusiness
read the tagged Ethernet frame to prises can continue to use their existing
applications for an enterprise.
security mechanisms, including fire-
Flexible portfolio of services
Adopting Optical Ethernet networks will
enable enterprise managers to choose
from a variety of specialized services that
can be rapidly deployed, easily provi-
sioned, and remotely maintained by a
service provider or by the enterprise itself.
For enterprise managers, the possibili-
ties are exciting, and the risks are mini-
mized. They will be able to implement
or contract for competitively priced,
high-speed, high-value services, such as:
• Optical LAN services OE LAN
• Internet access services Remote
• Wide area connectivity services
• Multiservice transport services
To the enterprise user, an Optical LAN appears as a robust, trustworthy
• Outsourced network services Ethernet segment.
Optical LAN services
Optical LAN service (OLS), the foun- • Cost-effective network simplification OLS allows service providers to share
dation of Optical Ethernet applications, resources and provision fiber among
• Power, reach, and reliability of optics
extends the LAN across the metropolitan, multiple customers to leverage their cost
regional, and wide area networks by Optical LAN services include the connec- structure and offer competitive service
using secure Virtual Local Area Network tivity that service providers currently pricing. For enterprise managers, this
(VLAN) technology. Analogous to a offer to enterprise customers but with means an easy, cost-effective way to
Transparent LAN or VPN service, OLS significantly more bandwidth, higher securely link enterprise sites across
is simple to implement and delivers speeds, and faster deployment for a the globe.
immediate value, including: time-to-service advantage.
• Increased bandwidth without changes After the Optical LAN services are in
to the existing enterprise network place, enterprises can add other Optical
topology Ethernet services to enhance the effec-
tiveness of their IT infrastructures and
• Robust and scalable transport
to facilitate the implementation and
delivery of their eBusiness products
Internet access services
For many eBusiness-oriented companies,
Client Site B
the Internet has become pervasive
throughout the firm. These companies Client Site A
aggressively link their customers,
suppliers, business partners, and remote Customer
employees through the:
• Internet by maintaining web sites
for sales and customer service To Internet
• Extranets that connect suppliers and Firewall
business partners for improved inven-
Client Site C Supplier Remote
tory and supply chain management Extranet Access
Central Office/ISP PoP/Carrier Sites Sites
• Intranets and enterprise data portals Hotel/Internet Data Center
that provide remote and mobile
employees access to the corporate
Optical Ethernet allows LAN frames to find their way across the WAN in
While all of this access is possible with the same connectionless manner that they find their way across a LAN.
today’s mix of LAN, MAN, and WAN The result is that there is no distinction between the LAN, MAN, and WAN
networking technologies and services, it networks with Optical Ethernet.
is often slow. This has a negative impact
on productivity and can cause customer,
employee, and supplier dissatisfaction. Wide area connectivity services tion exists between the LAN, MAN,
With Optical Ethernet, however, access The Optical LAN segment, which does and WAN networks with an Optical
will be augmented by higher speed and not have physical distance limitations, Ethernet network.
much greater bandwidth. If, for example, can span sites that are miles apart and The benefits are many. A service provider
your current connection is a T3 line, is designed to deliver high-bandwidth simply provides fiber connectivity, and
with Optical Ethernet, you can have a support for data, voice, and video appli- an enterprise or service provider installs
10 gigabit Ethernet pipe that delivers 60 cations throughout the enterprise and and configures the Ethernet equipment.
times more bandwidth to service appli- across the WAN. Using Ethernet MAC There is no requirement for a skilled
cations and transactions. Optical Ethernet addresses, flooding, and learning technician to map or provision traffic
service literally opens the bottleneck capabilities, Optical Ethernet allows across the WAN to individual egress
for network traffic running between LAN frames to find their way across sites, as is done today with leased lines
enterprises, the MAN, and Internet the WAN in the same connectionless or other virtual circuit services, such as
Service Providers (ISPs), resulting in manner that they find their way across frame relay, ATM, and path-based serv-
powerful performance gains. a LAN. The result is that no distinc- ices, including IP and MPLS.
Multiservice transport services some of the services that Optical Ethernet isolation and maintenance for appli-
In addition to offering a broadband, has enabled. cations, workstations, and the LAN
high-speed, data service, enterprise itself. The emerging area of remote
Some of the specialized, value-added
managers can also consolidate legacy data management, through Storage
services that enterprise managers may seek
voice, data circuits, and private line Area Networks (SANs) and Internet
from service provider partners include:
services all on the same network infra- Data Centers (IDCs), is another
structure through an enterprise-owned • Optical Routing for Intranet and task that enterprise managers might
or service-provider network. Internet Services—Enables the enter- outsource.
prise manager to outsource gateway
By consolidating the voice and data services to a service provider. The
networks onto one infrastructure, enter- enterprise manager is responsible for Is Optical Ethernet right
prises save the cost of owning and oper- the network up to the gateway port, for your business?
ating separate networks. Consolidation while the service provider manages At Nortel Networks, we believe that the
can drive savings in capital equipment, the more complex gateway, itself. growth in demand for bandwidth is just
facilities costs, headcount and overhead, The enterprise router can be either beginning, and that Ethernet will soon
support personnel, and training. located at the enterprise site or, to be become the global protocol of choice for
Enterprises can also look to service more efficient, centralized and shared enterprise and service provider networks.
providers to deliver the low latency and at the service provider’s location.
The emergence of Optical Ethernet repre-
low jitter demanded by bandwidth- • Network Address Translation (NAT)/ sents the type of revolutionary innovation
intensive applications, such as Voice Address Management Services— that is transforming the technology
over IP (VoIP), video on demand, and Removes the headaches associated landscape and driving enterprise execu-
High-Definition Television (HDTV). with network address translation and tives to leverage their eBusiness applica-
re-translation by allowing a service tions, to focus on their core business,
Outsourced network services provider partner to consolidate and and to improve their bottom line results.
manage these services.
Today, with pressure to maintain and Optical Ethernet solutions will initially
operate increasingly complex networks, • Security Services—Relieves the enter- appeal to executives with specific needs
many companies are moving towards prise of the daunting task of managing that are strategic to meeting their busi-
consolidating network operations in order security regardless of the number of ness goals. Firms with an immediate need
to concentrate on their core competen- additions, moves, and changes in the to lower an expanding IT budget, those
cies, to minimize risk to their bottom network; may include VLAN config- with requirements for bandwidth of OC3
line, and to combat IT staffing shortages. uration, firewalling, and encryption. or greater, and companies interested in
• Enabled Outsourced Applications outsourcing to a technology provider in
Since Optical Ethernet is based on
Services—Allows an enterprise order to focus on their core business are
familiar Ethernet technology, many
manager to consolidate operations by all strong candidates for Optical Ethernet
enterprise managers feel confident in
contracting with a service provider to services. Optical Ethernet services can
outsourcing the maintenance of this
manage some or all of the IT func- be obtained through a service provider
stable and familiar part of the network to
tions, such as asset management, or an Optical Ethernet network can be
a service provider, as well as adding
performance monitoring, and fault implemented by an enterprise.