Five Reasons to Adopt Layer 2 Ethernet Switching Over DWDM Networks Now

A white paper issued by: Siemens Networks Dr. Hans-Juergen Schmidtke, VP of Optical Transport Alan Gibbemeyer, Director, Next Generation Networks BU

Executive Summary
A new network is emerging for delivering media-rich and bandwidth-hungry content, applications and services. Traditional SONET (Synchronous Optical NETwork)/SDH (Synchronous Digital Hierarchy) architectures, developed for the narrowband world of a generation ago, are overloaded. Such practices as stacking SONET/SDH rings to increase capacity are complex and costly, while Ethernet-over-SONET/SDH protocol A Metro conversions waste tremendous bandwidth. Ethernet Forum (MEF) With data traffic exploding and now dwarfing the Time Division Multiplexing (TDM)-based demands, a move to pure packet-based transport over Dense Wavelength Division Multiplexing (DWDM) has significant economic benefit by avoiding packet to TDM conversions at each node. In addition, newer protocols such as Gigabit Ethernet (GigE), 10GigE and Fibre Channel are coming forward alongside advances in smart DWDM technology. study suggests that an Ethernetover-optical network costs about half as much to operate as a legacy SONET/SDH Together, these advances offer increased flexibility, reduced operational complexity and lower equipment costs compared with todays widespread SONET/SDH infrastructure. In fact, a Metro Ethernet Forum (MEF) study suggests that an Ethernetover-optical network costs about half as much to operate as a legacy SONET/SDH one. one.

Aside from its high bandwidth capacity, DWDMs key advantages are its ability to easily transport these newer data protocols and effectively collapse current network overlays by eliminating optical-electrical-optical (O-E-O) conversions. OEO conversions are the major cost drivers in todays transport network, both in terms of investment CAPEX, as well as the long-run operational costs. From a topology and service delivery point of view, meshed capable Ethernet and meshed DWDM layer is the perfect match.

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This paper identifies five compelling reasons service providers should consider implementing Layer 2 Ethernet Switching over DWDM now:

1. Eliminate Network Layers While Reducing Complexities and Equipment Costs 2. Improve Resource Use to Achieve Optimal Bandwidth Efficiency 3. Simplify End-to-End Provisioning to Speed Time to Market 4. Automate Network Management for Scalability and Reduced Operating Expenses 5. Detect Problems Automatically and Resolve Them Faster Across the Entire Network

By combining packet-processing intelligence and optical-wavelength assignment into a single, unified system e.g., Layer 2 Ethernet Switching over DWDM service providers can achieve significant operational savings, make better use of their resources, achieve optimal bandwidth efficiency and gain nearly limitless scalability. These advantages make a business case for DWDM especially compelling for metro and regional applications, and for network operators who may have considered DWDM solely a long-haul transport technology.

In effect, the price-performance of Layer 2 Ethernet Switching over DWDM can help service providers deliver content, services, and applications more cost-effectively, while sharpening their competitive edge and reducing customer churn.

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Table of Contents

1. Situation Analysis ................................................................................................6 2. Five Reasons to Adopt Layer 2 Switching Over DWDM.................................10 #1: Eliminate Network Layers While Reducing Complexities and Equipment Costs ..............................................................................................................11 #2: Improve Resource Use to Achieve Optimal Bandwidth Efficiency ................12 #3: Simplify End-to-End Provisioning to Speed Time to Market ..........................13 #4: Automate Network Management for Scalability and Reduced Operating Expenses .......................................................................................................15 #5: Detect Problems Automatically and Resolve Them Faster Across the Entire Network ..........................................................................................................16 3. Conclusion ..........................................................................................................16 4. Abbreviations and Acronyms............................................................................18

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1.

Situation Analysis
A dynamic market shift is taking place toward a much richer and increasingly personalized everything-on-demand information, communications, and entertainment environment. Fully realized, this environment will enable consumers and businesses to access whatever content, applications, and services they want whenever and wherever they want them.

So what do they want? New and exciting IP-based content, applications and services such as IPTV (Internet Protocol TV); Video on Demand (VOD); triple-play voice, data and video; the so-called smart home; 3G/mobility; IP video telephony; multi-player networkbased gaming and more.

Ethernet on the rise Of course, all this generates packet traffic Ethernet, more and more that needs massive and independently scalable real-time ingest and streaming capabilities, along with colossal storage capacities. Plus, it needs ingest and streaming to be separated for the sake of efficiency and Quality of Service (QoS) / Quality of Experience (QoE) guarantees.

In response, service providers are building out their metro and regional networks to handle todays demands while both supporting legacy TDM services and keeping an eye on tomorrows needs. Service providers have quickly realized the legacy technologies in todays Metro Area Networks (MANs) lack the dynamic functionality and scalability to handle the ever-increasing bandwidth demands from the access network at the requisite QoS / QoE level.

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These new IP-based services and applications require a flexible transport infrastructure to handle their unique network demands and requirements. For example, they require massive real-time ingest capabilities as well as the separation and independent scaling of streaming/ingest and storage capacity. The challenge The challenge that service providers are faced with is finding the right carrier-grade network elements or building blocks that offer cost-efficiency, simplified operations and scalability to meet the exponentially increasing bandwidth demands resulting from the adoption of these new services. Operators have to figure out how to cost-effectively move these multiple-service offerings without compromising operational efficiency. that service providers are faced with is finding the right carriergrade network elements or building DWDM on the march In order to remain competitive today, service providers need to move away from legacy transport networks such as SONET/SDH and Frame Relay toward highly reliable and intelligent DWDM networks. DWDM transport networks reduce fiber requirements by unlocking the embedded capacity of existing fiber infrastructures. The idea is to use fiber - not to transmit signals just on a single wavelength - but to convey them through the same fiber over multiple wavelengths to better utilize almost unlimited fiber-optic capacity. blocks that offer costefficiency, simplified operations and scalability to meet the exponentially increasing bandwidth demands resulting from After a long period of stagnation and decline in the last years, demand for optical equipment is now rapidly accelerating again as service providers around the world have begun to consume the excess network capacity that resulted from the massive network expansion they began in the mid-1990s, and are starting projects to leverage recent technological advances to deliver on the promise of everything-on-demand and the increasingly high-definition, personalized TV. the adoption of these new services.

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The next graph illustrates the continuous rapid sales growth of Wave Division Multiplexing gear in North America from the latest Infonetics Research.

North Am erica Metro WDM Revenue (USD Million)* 700 600 500 400 300 200 100 CY 2003 CY 2004 CY 2005
Even service providers who traditionally
*Source: Infonetics Research

did not need DWDM networks

The reason for this strong growth is that DWDM offers greater transport and operational efficiencies. Because of its bit-rate and protocol-independent nature, service providers can collapse current overlays and seamlessly support the increasingly ubiquitous newer low-cost protocols, such as GigE and 10 GigE, in their native formats. Even service providers who traditionally did not need DWDM networks should consider them today in order to deliver these new, media-rich content, applications, and services in a cost-effective and reliable way. Otherwise, they risk their ability to play in this new world of everything on demand and personalized user experiences.

should consider them today in order to deliver these new, media-rich content, applications, and services in a costeffective and reliable way.

A DWDM network, when combined with Layer 2 Ethernet switches, enables service providers to achieve operational efficiencies and savings while also positioning themselves for future revenue-generating services.

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The cost savings of a DWDM network, when combined with GigE and wire-speed Layer 2 Ethernet switches, are significant. According to a Metro Ethernet Forum (MEF) study based on a three-year build-out of a medium-sized metro area network, a network based on optical Ethernet design principles costs 49 percent less to operate than a legacy SONET/SDH-based network.1

From the network economics analysis that Siemens has performed to date, we estimate the capital savings potential of L2 Ethernet over DWDM to be approximately 40-45 percent, assuming that 20 percent of the cost is attributed to access and 80 percent to core optics. A recent detailed study suggested that 70 percent capital savings is possible when Carrier Ethernet replaces legacy ATM access networks.

Capital expenditure savings when an automated DWDM replaces a legacy transport network.

On the optical core side, about 30 percent in capital savings can be realized when an automated DWDM regime replaces a legacy transport network. The savings come from
1

Billing World and OSS Today, January 2006, Metro Ethernet Finally Delivers.

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reduced optical-electrical-optical (O-E-O) conversion plus the initial build capital reduction due to future-proof and scalable network design. On top of the capital savings, human effort is also reduced for service provisioning and operations, resulting in an up to 80 percent savings of operational expenses over time.

In addition, significant technology advancements are occurring in the areas of intelligent optical DWDM line systems. These include systems incorporating ROADMs (Reconfigurable Optical Add-Drop Multiplexers), which more than make up for their cost by eliminating the need for costly O-E-O conversions, and even PXCs (Photonic Cross Connect) that enable a transparent optical mesh architecture. Another big advancement comes from distributed control mechanisms like Generalized Multi-protocol Label Switching (GMPLS) that help provide intelligent management of data capacity and throughput. Together these innovations can provide increased flexibility, reduced operational complexity, and lower equipment costs through the reduction of DWDM transport network components.

A completely integrated network employing Layer 2 Ethernet Switching over DWDM allows for dynamic data capacity and throughput sharing/distribution across multiple server ports, blades and complexes. This results in an inherently more reliable and scalable system able to handle tomorrows ever-growing bandwidth demands most cost effectively.

2.

Five Reasons to Adopt Layer 2 Switching Over DWDM

Whether networks are TDM-based or packet-based, Layer 2 Ethernet switching can be integrated with DWDM optical transport systems to cut costs, make better use of network resources and provide simple end-to-end provisioning.

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Although there are many reasons to adopt Layer 2 Ethernet Switching over DWDM, the top five most compelling reasons why service providers should consider deploying this next generation optical network technology today are as follows:

#1:

Eliminate Network Layers While Reducing Complexities and Equipment Costs

A DWDM optical transport network can extend from the core to the edge and access networks. ROADMs can eliminate the complex O-E-O layer, thereby reducing the number of network elements. For example, traffic that needs switching or routing can be dropped to an appropriate device while traffic that does not benefit from a sub-lambda packet processing can be optically switched. In effect, this collapsing of the optical network layers dramatically reduces network complexities and operating costs.

Now add to that carrier-grade Layer 2 Ethernet for transport, aggregation, and switching. Carrier Ethernet has proven to reduce costs in terms of capital expenses as well as operating expenses without compromising the availability of the delivered services and QoS. Especially effective is this packet-based technology, due to the fact that the next generation network applications are typically native packet-based applications. A costly transformation from packet to TDM and back is being avoided and a full layer of transformation is eliminated.

For example, putting carrier-grade Ethernet over DWDM allows for a very cost-optimized solution, such as the ideal placement of aggregation and grooming sites to share the resources in the optical and electrical layers, minimizing wavelength usage. Again, it requires less network elements and therefore is much easier to manage and operate.

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In addition, a collapsed Layer 2 Ethernet over DWDM network uses less power, less rack space and offers very high scalability at a much lower cost than traditional TDM-based networks.

#2:

Improve Resource Use to Achieve Optimal Bandwidth Efficiency

A fully integrated Layer 2 Ethernet over DWDM network can adapt to varying traffic demands and provide per-flow protection without packet restrictions necessary requirements for a multi-service environment.

By combining the packet-processing intelligence and optical-wavelength assignment into a single system, effectively collapsing the network, service providers can avoid excessive inventory as well as the restrictions imposed by per-port protection. An integrated Layer 2 over DWDM network allows these services to be separated, and then protected differently. The end result is a cost-effective system that makes better use of its resources. A two-system architecture (illustrated below) would require the flows to be broken up according to service level, resulting in underutilized ports. The key, again, is creating the optimal mix of port protection and mix of QoS supported on a single system.

Collapsing of layers and technologies: L2 over DWDM

Content
Residentia Business

Ethernet is a very cost-effective and performance optimized solution

L5-L7 L4

Unified optical network layer

IP VPN, IP VPLS

L0/L1

L2 L3

DWDM

DWDM

OSI- Layer

ULH / Regional Core

Ethernet as service and transport technology

Access
Siemens March 2006 8

A two-system DWDM network with Ethernet as a transport technology.

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However, a collapsed network (illustrated below) overcomes the two-shelf restrictions and aggregates the flow directly into the DWDM optical transport wavelengths to optimize bandwidth efficiency and costs.

Collapsing of layers and technologies: L2 over DWDM

Content
Residentia Business

L1

L2 L3

L4

L5-L7

DWDM OSI- Layer

DWDM

Ethernet as transport technology ULH / Regional Corefor content delivery Access

Business Siemens March 2006 9

A collapsed Layer 2 over DWDM Network always transports data on the lowest possible layer.

A regional or core network with Layer 2 Ethernet over DWDM can benefit by keeping within the optical layer those wavelengths that don't require LER/LSR routing while traffic requiring LSR is dropped out to a "switching" portion of the DWDM system. This means, only traffic that requires switching leaves the optical layer a significant savings in both capital and operational expenses.

#3:

Simplify End-to-End Provisioning to Speed Time to Market

Service providers require highly automated optical systems in order to provision new services, troubleshoot quickly, and add capacity as needed. Thats why simple, easy-touse tools that provide automated end-to-end provisioning are so valuable. An ideal solution, for example, would deliver one software control platform for easy and fast end-

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to-end provisioning from network planning to the final step of verifying a Service Level Agreement (SLA), offering minimal fault-prone human intervention. With a With a collapsed network, planning and configuration tools are linked via software interfaces to make sure the link is installed exactly as planned. Work orders are issued automatically and sent from the network manager down to the network elements. Reconfiguration or installation of new channels is done continuously within the software suite while SLA data can be monitored and logged automatically and verified via the network. simplified endto-end provisioning system, service providers can offer the highest service
Example of ease of use HiT 7300 can provision a new wavelength by noon Todays process
Customer request

availability to increase
w/ simplified end-to-end provisioning <2h

customer satisfaction and reduce churn, while achieving

Days

Hardware

Days

<2h

record-setting, time-to-market

Automation Implement service in network management Switch on service & clear for customer

Days Days

<5min <5min

goals with new services.

Faster time to market, faster return on investment

Page 1 August-06

Example of a simplified end-to-end provisioning system for Layer 2 over DWDM Networks.

With a simplified end-to-end provisioning system, service providers can offer the highest service availability to increase customer satisfaction and reduce churn, while achieving record-setting, time-to-market goals with new services.

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#4:

Automate Network Management for Scalability and Reduced Operating Expenses

A single, automated network management system within a Layer 2 Ethernet over DWDM network can provide full support for all management tasks from the element layer to the service layer, as well as an overall network view of the complete next generation optical network.

The system should be able to scale within wide limits to provide customized and costoptimized network management solutions. This pay-as-you-grow concept allows operators to start with a cost-effective system and gradually add more growth as the network demand increases.

It should also support the new generation Multi-service Provisioning Platform (MSPP) networks, and should be flexible enough to stand alone or be integrated into the NMS (Network Management System), thus providing a seamless extension of the existing management network.

In order to support SONET and SDH interfaces, TDM circuit emulation support is required. Data layer management Layer 2 switches, for example Virtual Local Area Networks (VLANs) or Resilient Packet Ring (RPR) networks are handled within a single network management platform.

By supporting open and standard interfaces, the network management system can be integrated into virtually any high or low-level management system, allowing for further reduction in operating expenses.

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#5:

Detect Problems Automatically and Resolve Them Faster Across the Entire Network

With a Layer 2 Ethernet over DWDM network, a much higher resiliency and drastically simplified operations can be achieved. An integrated solution can support very intelligent protection mechanisms with shared protection over different OSI layers. In addition, enhanced alarm correlation and troubleshooting simplify the network-level for root-cause determination and problem resolution across the entire DWDM network. For example, a dropped signal typically causes alarms to go off everywhere in the network across amplifiers, multiplexers, transponders, and other network elements. A collapsed network is able to correlate and isolate the problem to the direct source much faster, eliminating unnecessary alarms in the network and resolving problems more quickly. It also immediately pinpoints critical issues with powerful alarm logging, alarm filtering, repetitive alarm suppression, and intelligent root-cause alarm correlation functions across packet and optical domains.

3.

Conclusion
The industry is rapidly moving toward a bandwidth-intensive, multi-service world; and with service providers increasingly reaching their network capacity, they are struggling with how to cost-effectively deliver on the promise of these new services and applications without compromising operational efficiency.

Over the past five years, many service providers have deployed DWDM networks as the underlying and enabling Layer 0/1 optical technology, which lets them collapse current overlays and easily support new low-cost protocols, such as GigE/10 GigE and Fibre Channel, in their native formats.

While it may seem obvious that the network demand is moving to Layer 2 or IP over DWDM, there are problems in network migration for service providers. Circuit emulation
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with Ethernet/IP transport or overlay packet and TDM with TDM as the transport technology are the two main options available to maintain legacy services. The tendency is moving toward circuit emulation for the best economic solution.

The DWDM transport network, combined with Layer 2 Ethernet switching allows for unprecedented dynamic data capacity and throughput sharing and distribution across multiple ports, blades and complexes, and drastically improved resiliency and availability. The Layer 2 Ethernet packet switch technology is especially optimized for the next generation network traffic that is dominantly and natively packet-based.

These capabilities enable service providers to drastically cut equipment and operational costs; reduce complexities in the network by eliminating/collapsing layers within the network; make better use of network resources to achieve optimal bandwidth efficiency; offer the highest service availability through a single-automated network management approach that gives an overall view of the complete next generation optical network; and easily scale to handle tomorrows nearly limitless bandwidth demands.

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4.

Abbreviations and Acronyms

CAPEX DCC DWDM GigE GMPLS IP IPTV LER LSR MAN MEF MSPP NMS O-E-O OPEX PXC QoS QoE RPR ROADM SDH SLA SONET TDM TNMS VLAN VOD

Capital Expenditures Data Communications Channel Dense Wavelength Division Multiplexing Gigabit Ethernet Generalized Multi-protocol Label Switching Internet Protocol Internet Protocol TV Label Edge Router Label Switched Router Metro Area Network Metro Ethernet Forum Multi-service Provisioning Platform Network Management System Optical in Electrical processing Optical out Operational Expenditures Photonic Cross Connect Quality of Service Quality of Experience Resilient Packet Ring Reconfigurable Optical Add-Drop Multiplexer Synchronous Digital Hierarchy Service Level Agreement Synchronous Optical NETwork Time Division Multiplexing Telecommunications Management System Virtual Local Area Network Video on Demand

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Appendix: The Siemens Family of Integrated Layer 2 over DWDM Products

The Siemens family of integrated Layer 2 switching over DWDM products are based on Siemens' SURPASS Transparent Optical Networks solution (including the SURPASS hiT 7300 and SURPASS hiD 6630/50/70 series DWDM platforms, and the TNMS network management system), enabling the roll-out of high-bandwidth, flexible, and scalable networks.

Next Generation Multi-haul DWDM Platform SURPASS hiT 7300 The SURPASS hiT 7300 is a flexible and cost-efficient 40-channel DWDM transport platform optimized for high-capacity transport within regional and long-haul networks. It is designed and optimized for bit rates of 2.5 Gbit/s, 10 Gbit/s and 40 Gbit/s per wavelength. SURPASS hiT 7300s key building blocks include terminal, optical line repeaters, OADMs, and ROADMs that allow for tailored solutions for any kind of network size and architecture. It offers a full range of transponders, enabling Ethernet (GigE and 10 GigE), SAN, TDM and OTH services.

SURPASS hiT 7300 offers comprehensive automation and customization of network handling within one common DWDM platform, which drastically reduces operational costs and speeds return on investment. This next-generation multi-haul DWDM platform also offers a high degree of modularity, enabling an easily scalable, pay-as-you-grow strategy and guaranteeing a fast return on investment.

Carrier Ethernet Switches SURPASS hiD 6630/50/70 Series The Carrier Ethernet switches platform the SURPASS hiD 6630/50/70 series is designed to meet the requirements of metro aggregation and metro core carrier grade networks. It includes industry-leading traffic management, enabling service providers to offer revenue-generating quality services to their customers on a DWDM converged network, backed by guaranteed SLA delivery. Siemens family of Carrier Ethernet switches have been certified as compliant with specification 14 of the Metro Ethernet Forum.

Automated Network Management System TNMS (Telecommunications Network Management System) TNMS is the management system for next generation optics. It provides an easy-tounderstand overall network view and simple network navigation coupled with uniform fault, configuration and security, and performance management. The TNMS carries out all common management functions in the element, network, and service layer extremely efficiently. By supporting open and standard interfaces, TNMS can be easily integrated into different management network scenarios, allowing for further reduction in operating expenses. Its ergonomically designed and intuitive user interface creates a new dimension in operating convenience, resulting in higher efficiency, error-free routine operations and reduced staff training time and lowering over all costs and operating expenses.

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