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Create ECC200 in Objective-C SONET/TDM versus Ethernet bandwidth availability

SONET/TDM versus Ethernet bandwidth availability
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12 months later) At this point, however, the customer has two options to get to 500M in the case of SONET/TDM access:
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The customer can look at the next capacity available (ie, OC-12 (622M)) but will then have to pay an extra amount for the additional 122M capacity that the customer will not use for another 12 months The customer can defer until it needs the full 622M (12 months later); in this case, the customer is obviously making do with severely limited bandwidth capacity, which will inevitably have an adverse impact on the customer applications (at least for another 12 months) Of course, this also means the Service Provider will lose potential revenues for another 12 months
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Some sample (conservative) numbers are used in the Figure 114 and illustrate what is basically a lose-lose outcome for both Service Providers and end users Using Ethernet instead of SONET/TDM means that such scenarios can be avoided and furthermore, only the bandwidth required can be purchased Ethernet ports on devices can be tuned to offer bandwidth, usually upward of 1M, in linear increments (of 1M or less) This flexibility means the ability to use the bandwidth optimally Ethernet, therefore, enables a pay-as-you-use model that is naturally preferred over an inefficient and expensive TDM-based model
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3-Yr Total Cost Comparison $3000 000s of $$$ $2500 $2000 $1500 $1000 $500 $Metro Ethernet Traditional (FR) Traditional (PL) Private Data Dedicated Internet Access Ethernet Costs = $500K Private Line Costs = $2500K
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MEF commissioned study on total savings using Ethernet services
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Ethernet-based services are priced consistently lower than comparable TDM and Frame Relay services in almost all markets Even though the actual pricing varies between markets, it is at least 20 30 percent lower than ATM, Frame Relay, or Private Lines The fairly strong competition among Service Providers, coupled with the lower cost of delivering Ethernet services versus other traditional services (see the next section), has largely contributed to this situation Studies commissioned by the MEF used a scenario of a large enterprise with several sites, requiring Internet access and a point-to-point connection between multiple sites These services could be delivered over a Frame Relay service, Private Line service, or an Ethernet service It was found that the enterprise would save nearly 80 percent using an Ethernet service over a traditional Private Line As important, in the scenario presented, this equated to a dramatically lower cost of nearly $500K using Ethernet services, as opposed to the $25 million of using the private line over a period of three years (see Figure 114) Thus, Ethernet services represent a significant savings in absolute terms as well, even when a nominally sized customer base is considered
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Lowest Service Cost (per bit) Simpler, Lower Cost Equipment at the Customer Premise Employing a single Ethernet interface for all the services means simpler Ethernet equipment, such as a low-end switch or a router, suffices in lieu of complex multiport ADMs and usually the associated demarcation devices like Integrated Access Devices (IADs), and CSU/DSUs, or similar devices A MEF-sponsored study using a sample configuration of just three services (ATM, Frame Relay, and Internet access) and replacing it with a single 10/100 Ethernet service showed a capital savings of nearly 95 percent! The initial cost of $2500 $7500 per WANside port was reduced to $300 for a 10/100 Ethernet port In addition, there is an opportunity to optimize the total bandwidth required using Ethernet and potentially further reducing the port costs (so fewer ports may be required)
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Using Ethernet (access) services, as mentioned previously, an enterprise reduces not only the amount (and cost) of equipment but
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Lower Operational Expenditure (OPEX)
Ethernet: From LAN to the WAN
also the attendant operational expenditure that would have been associated with the provisioning, operationalizing, and managing these multiple devices, each supporting a different technology
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