Analysts: Ethernet Tag Switching less costly than MPLS-TP

Fujitsu is touting the results of a research report by Network Strategy Partners (recently purchased by ACG Research) that finds Fujitsu’s implementation of Connection-Oriented Ethernet (COE), called Ethernet Tag Switching, offers a 32 percent savings in operations expense (opex) over five years versus MPLS-TP.

Fujitsu is touting the results of a research report by Network Strategy Partners (recently purchased by ACG Research) that finds Fujitsu’s implementation of Connection-Oriented Ethernet (COE), called Ethernet Tag Switching, offers a 32 percent savings in operations expense (opex) over five years versus MPLS-TP.

COE is a method to provide metro Ethernet networks with performance, quality-of-service, and security attributes similar to that of SONET/SDH infrastructures.

“We found that the Fujitsu Ethernet Tag Switching implementation of COE produces lower opex than the MPLS-TP implementation of COE when service providers migrate from a SONET-centric to a packet-centric transport network infrastructure,” said Michael Kennedy, Ph.D., principal analyst for ACG Research. “In particular, Ethernet Tag Switching goes a long way toward simplifying operations, administration, and Maintenance (OAM) while incorporating widely accepted Carrier Ethernet standards. The combination allows transport operations personnel to continue using the procedures and applications they’ve used for years, even as service delivery and transport functions become increasingly packet-based.”

Network Strategy Partners used opex modeling tools to assess Ethernet Tag Switching and MPLS-TP across six categories of service provider operations:

  1. OSS System Integration and Software Expenses
  2. Network Management Equipment and Software
  3. Training
  4. Testing and Certification Operations
  5. Network Care
  6. Network Upgrades and Patches.

In each category, Fujitsu Ethernet Tag Switching resulted in greater cost savings versus MPLS-TP, according to the report, which is available online.

“The Network Strategy Partners study reaffirms what we’ve been hearing from customers for a number of years,” said Ralph Santitoro, director of Carrier Ethernet market development, Fujitsu Network Communications and founding member and director of the Metro Ethernet Forum. “Since we began integrating Ethernet Tag Switching COE into our award-winning packet-optical networking platforms, service providers have embraced the technology. They view using COE as the way to lower operating costs, preserve existing network and OAM investments and migrate towards delivering high performance Ethernet services driving the next generation of communications. We’re gratified to see that the study results mirror the experiences and expectations of our customers.”

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