WHITEPAPER

F&S ON ETHERNET

Making the move to Ethernet

A DECISION GUIDE

F&S on Ethernet

Executive Summary
Enterprises today need higher bandwidth for site-to-site connectivity and data center connectivity to cope up with new requirements involving collaboration, consolidation and convergence. At the same time, organizational dynamics necessitates solutions that can provide scalability, performance, simplicity and control at lower incremental costs. The mass adoption and simplicity of Ethernet has lowered costs dramatically and consequently helped it expand into places where Synchronous Digital Hierarchy (SDH), Asynchronous Transfer Mode (ATM) and Multi-Protocol Label Switching (MPLS) were dominant. Thus carrier-grade Ethernet services offer a strong value proposition to enterprises to manage point-topoint (P2P), point-to-multipoint (P2MP) and multipoint-to-multipoint (MP2MP) networks. The technology, which is now standard-based and multi-vendor interoperable, is gaining strong adoption with growth rates of over 20% in most markets. It also offers the flexibility of using either Layer 2 or Layer 3 services to create a networking solution. This white paper aims to do the following: Evaluate the value proposition of Ethernet services based on the requirements of enterprises Enable decision making and evaluation of the right Ethernet solution Highlight the salient features of SingTels Ethernet portfolio

1. Ethernet Penetrates the WAN

Traditionally, Ethernet-based networks have been deployed in enterprise Local Area Networks (LAN) because of their simplicity, low equipment cost, high speed and multi-vendor interoperability. However, in the past few years, Ethernet is gaining adoption as a Wide Area Network (WAN) technology due to the following technical reasons: WAN traffic explosion that is doubling every four years Unlike other WAN technologies (e.g. ATM and frame relay) that are complex to configure and maintain as new sites are added, Ethernet automatically detects and forms routing links Widespread availability of Ethernet interfaces in networking equipment Application-Specific Integrated Circuit (ASIC) level economies of scale enables lower cost of components and hence lower cost per Mbps Rapid standardization of Ethernet Services by the Metro Ethernet Forum (MEF) - a non-profit international industry consortium To clarify and standardize the various services that can be offered by Carrier Ethernet, MEF was formed to accelerate the worldwide adoption of carrier-class Ethernet networks and services. The MEF has defined Carrier Ethernet as a ubiquitous, standardized, carrier-class network with five major attributes that distinguish it from familiar LAN based Ethernet: Scalability, Reliability, Standardized Services, Quality of Service (QoS) and Service Management. Ethernet can connect to either Layer 2 or Layer 3 services to create a networking solution, providing high-bandwidth connectivity between locations within a metropolitan area, between two cities or even across a WAN. The technology can be implemented either as an access method to a Layer 3 technology, or as a Layer 2 P2P, P2MP or MP2MP service.

As a P2P service, Ethernet Private Line (EPL) can provide a dedicated Ethernet Virtual Connection (EVC) within a metropolitan area (see chart 1.1). In comparison, Ethernet LANs (ELANs) are MP2MP service that uses switches to connect individual hosts or User Network Interfaces (UNIs) (see chart 1.2). Individual ports are provided in the connection, and each frame that arrives at a port, has a destination address. The switches examine the destination addresses of the frames and send them to respective destination ports which are attached to destination devices. In this way, ELANs can be used to provide MP2MP support for LAN connectivity and as an effective solution for extending the bandwidth of existing Ethernets.
Chart 1.1: Network Architecture of EPL Ethernet Services

CE

CE

MetroEthernet Network (MEN)

CE

Chart 1.2: Network Architecture of ELAN Ethernet Services

CE

Multipoint-to-multipoint EVC

CE UNI

UNI

UNI CE

UNI CE

MetroEthernet Network (MEN)

Source: Frost & Sullivan

F&S on Ethernet

Chart 1.2: Network Architecture of ELAN Ethernet Services

P2P
Shared Ethernet Virtual Private Line (EVPL) Ethernet Private Line (EPL)

MP2PMP
Ethernet LAN (ELAN)

P2MP
Ethernet Virtual Private Tree (EVP-Tree)
Ethernet Private Tree (EP-Tree)

Dedicated

Ethernet Private LAN (EPLAN)

Traditional FR technologies are not designed to carry video and voice traffic efficiently since their inherent architecture increases the network delay. Real-time transactions processing in brokerage firms or specific vertical applications such as medical imaging for healthcare are among other applications that require missioncritical networks. Thus, when branch offices need speeds greater than 10 Mbps, Ethernet offers these speeds at a much lower cost compared to other technologies.
Chart 2.1: Applications Driving Demand

Source: MEF, Frost & Sullivan Chart 1.4: Technology Terminologies

Technology
Virtual Private LAN Service (VPLS) MPLS ATM

Definition
Provide Ethernet based MP2MP virtual communication over Multi Protocol Label Switching (MPLS). Data-carrying mechanism that belongs to the family of packet-switched networks. A switching technology that organizes digital data into 53-byte cell units and transmits them over a physical medium. A cost-efficient data transmission technology for intermittent traffic between LANs and end points in a WAN. Protocol for transferring multiple digital bit streams using lasers or light-emitting diodes (LEDs) over an optical fiber.

Collaborative Tools

Virtualisation

Real-time Transactions

Business Continuity

FR

SDH

2. Drivers of Ethernet Adoption

The reasons for adopting Ethernet in the WAN can be segmented around the following usage drivers. a). Data center related high-speed connectivity requirements: In an information centric world, data center traffic is rapidly expanding due to a mixture of access and storage related requirements and greater virtualization of sites. Data center interconnection speeds between regional hubs are now above 1 Gbps in many leading enterprises. Since other WAN technologies does not support granular increase in bandwidth, Ethernet offers high-speed, low-latency connections for such requirements through an EPL or EVPL. In some cases, the traffic is also driven by various Data Recovery (DR) sites that require a fast Storage Area Networking (SAN) synchronization. Increased virtualization also necessitates faster replication to provide access to real-time data. b). New applications and programs that are driving branch office traffic and hence larger bandwidth: A few years ago, a 2 Mbps link for a branch would suffice. However todays branch offices, especially those of service centric firms, are rapidly exceeding that speed due to increased usage of unified collaboration or two-way video transmission applications (e.g. Telepresence).

c). Re-organization of core networks and rationalization of network costs: This requirement is a resultant combination of the above two points especially for large enterprises, which have a mix of high-end data center connectivity to their regional hubs and branches. This necessitates a change in the core network architecture, with a mix of 1 Gbps links between data centers and beyond 10 Mbps from key offices. This is where an ELAN service is useful, as it can manage multiple connections over a unified Ethernet network. The network solution appears as a single LAN service across cities and centers and also allows enterprises to scale bandwidth in all these locations quickly, depending on the traffic and applications.

3. Enterprises Embrace Ethernets Value Proposition

With the rapid proliferation of carrier-grade Ethernet services from various service providers, the technology is gaining traction amongst enterprises who value its ability to provide higher bandwidth in a granular manner. Since the technology is now mature, standard-based and multi-vendor interoperable, it helps enterprises gain scalability across diverse corporate environments with significant reduction in provisioning costs. Ethernet services help in extending the familiar LAN environment to the WAN, thus enabling greater application level control compared to traditional deployments. Moreover, its technological advantages over SDH make it a compelling business case for MP2MP switched data and site specific requirements. Even for MP2MP type large networks, enterprises will benefit from the availability of scalable, secure and greater bandwidth which is necessary to support specific

F&S on Ethernet

application needs such as collaborative tools, real-time transactions, virtualization and business continuity. Moreover, in such cases where security is crucial, the ability to control IP routing in the case of an Ethernet service makes it more attractive for enterprises. As service coverage improves through greater deployments of fiber close to the commercial sites, the migration from traditional ATM/FR to Ethernet services would begin to accelerate. Thus, the key drivers of Ethernet adoption by enterprises are clearly demonstrated from Chart 3.1 based on a survey that Frost and Sullivan conducted in a key ASEAN country involving 80 enterprises. Over 40% of the enterprise spoken to in the above survey indicated that they were either evaluating or planning to deploy an Ethernet based WAN in the next 12-24 months and 17% of them had already deployed it.
Chart 3.1: Key drivers of Ethernet

The Asia Pacific Carrier Ethernet services market is slightly behind that of North America and garnered US$2.19 billion in revenues in 2007. Business expansion of SMEs, and the higher demand for capacity and scalability from large enterprises to support their bandwidth intensive applications are among major drivers that are expected to drive demand for Carrier Ethernet services in the APAC markets.
Chart 4.1: Carrier Ethernet Services Revenues (Global), 2007

Europe

North America

Asia Pacific

25 20 15 10 5 0

Rating of drivers for Ethernet adoption

9.2

8.9

8.6

7.7

2007 2.19 2.35

2008 2.88 3.13 4.51

2009 3.59 4.17 5.59

2010 4.32 5.46 6.68

2011 5.08 7.02 7.67

2012 5.81 8.85 8.58

Reliability

Business Continuity

Lower cost for high bandwidth

Higher Access Simplicity for Speed operational staff

3.48

Source: Frost & Sullivan Survey of 80 Enterprises in an ASEAN country

Notes: Revenues are in USD and include retail and wholesale revenues from EPL and ELAN services Source: Frost & Sullivan

Thus the Ethernet value proposition is clear: Scalable bandwidth up to 10 Gbps for both P2P and MP2MP Reduced complexity due to familiarity of interfaces Cost effectiveness due to lower price per Mbps and lower CPE costs Greater control over security and flexibility over network architecture design

5. Choosing the Right Network Solution

Organizations with existing technologies need to carefully evaluate their network requirements and priorities before deciding on their network architecture. In this section, we will provide a detailed planning checklist to help enterprises decide on the right Ethernet solution for the business needs. The key decision drivers include type of network (the branch network, core network or the data center network), bandwidth requirements, degree of control, costs and level of scalability that the enterprise desires. The following chart (chart 5.1) shows the feasibility of various network solutions possible for different corporate requirements. The typical thumb rules that govern network decision making are: As the number of sites increases, the availability of Ethernet option in each of the site becomes significantly lesser. However, if the bandwidth requirement per site is lower than 4 Mbps, deploying Internet Protocol Virtual Private Network (IP VPN) could be a better choice, as long as the organization can operate sufficiently with best-effort connections. Till the standardization of VPLS, MPLS was the predominant solution for MP2MP type of connectivity. For a typical

4. Ethernet Adoption and Market Growth

Based on the increasing adoption of Carrier Ethernet, Frost & Sullivan believes that the size of the market, which was US$8.0 billion in 2007, is in the growth stage, and will witness a considerable increase between 2008 and 2012. The market is forecasted to grow at a CAGR of 23.7% over the forecast period, 2008 to 2012. With US$3.48 billion in revenues, the European market had contributed more than 43% of the total Carrier Ethernet services revenue in 2007. The market will be leveling off after 2011, when it will be approaching the maturity stage and reach US$8.58 billion in 2012. As private line and other legacy services are continually updated with Ethernet, the North American Carrier Ethernet services market, which was US$2.35 billion in 2007, is expected to take over the European market by 2012, reaching US$8.85 billion.

F&S on Ethernet

corporate MP2MP network, there are basically two options: either choose a hybrid of MPLS in tier 2 locations and Ethernet in tier 1 locations with security and routing control, or stay simply with MPLS. This decision is a function of the number of sites, bandwidth performance required per site and the security requirements of each site. For large branch connectivity to data centers, EVPL the most suitable solution as a point to multipoint solution where bandwidth requirement may exceed 10 Mbps. Typical example of such a network would be a broking firm with multiple trading centers in various cities. EPL or its variant EVPL can be commonly used for P2P links like data center interconnection or as a conduit to Internet.
Chart 5.1: Feasibility of Various Network solutions mapped to corporate requirements

networks, in a lot of other cases it is not very obvious. Hence, before deciding on an Ethernet solution, organizations should assess their needs such as following: Step 1: Decide on the network strategy, criticality to business and performance parameters for key applications and sites including security and reliability. Step 2: Evaluate the costs, number of sites, availability of Ethernet or other technologies in each of the sites, and the competence of the IT and network staff. Step 3: Map out the future expansion of the network and the robustness of the network options on future scalability. Identify the key migration issues and any impact on business. Overall, we see the decision making to be largely straightforward in the case of an EPL and large metro / hub / key branches moving to a VPLS type solution. The greatest dilemma is to choose between VPLS and MPLS in the case for larger WAN network. VPLS vs MPLS: A crucial analysis VPLS can be deployed over an MPLS platform to achieve a best-of-breed approach. Ethernet services that use VPLS provide all of the benefits of an MPLS-based network such as prioritization, resiliency, high performance, and MP2MP connectivity. Unlike MPLS services, VPLS are much easier to implement and manage. However, it cannot be quite claimed that VPLS approach is better than the MPLS, since each approach has advantages and disadvantages from different angles. Hence, what might be the best choice for a given customer does not necessarily have to be the best choice for another. For instance, while VPLS services offer more IP routing control, simplified WAN management, reduced cost and bandwidth scalability, it is not suitable for supporting multicast traffic. VPLS requires the replication of data packets in order for them to reach the entire provider edge (PE) routers in the Virtual LAN (VLAN). In case for multicast traffic, this replication will be expensive and lead to wastage of bandwidth. Hence, VPLS approach is applicable at best when multicast traffic is expected to be a small proportion of overall traffic needs. VPLS is a good solution if an enterprise requires meshed connectivity and the ability to scale the network. As IP routes are not shared with a provider, it may prove attractive to enterprises who want to keep control of routing and manage their own networks and connectivity. Moreover, businesses are able to take advantage of their existing local Ethernet interfaces and extend their network into the WAN. VPLS makes use of MP2MP connectivity via a network having virtual connections in a switched environment. The service uses a packet-switched network to create multipoint Ethernet connectivity across a WAN. It emulates the functionality of a LAN across the WAN by forwarding Ethernet frames, by forwarding information to all ports on the VLAN as well as by dynamically learning Media Access Control (MAC) addresses, which are unique addresses associated with LAN adaptors for the destination devices.

Usage Driver Data center interconnection

Feasiblie Network Solution Largely EPL or EVPL

Network Characteristics High speed with low latency which is P2P and enterprises prefer to control the network routing Bandwidth per branch of 10 Mbps and beyond, largely P2MP type of traffic

High speed specific applications in branch offices like video conferencing and real-time processing like stock broking Low speed branch networks like tier-2 distribution sites or connection to extranets Inter-office / hub core networks with data centers Complete corporate network including core and branches Internet Access Circuits

VPLS (wherever it is available) or MPLS

Largely MPLS.

Access speeds of 4 Mbps and below, sporadic traffic or batch processing type traffic Largely 10 Mbps+ type speeds, with MP2MP type connectivity Combination of above

VPLS

Hybrid options with Ethernet in core and MPLS in branches EPL

Provide high bandwidth access to the internet in metro areas

Source: Frost & Sullivan

6. Key Challenges for Enterprises to Migrate to Ethernet

Right framework for decision making: No one size fits all. Apart from the cases where the Ethernet choice is straightforward for data center connectivity or high speed branch

F&S on Ethernet

Chart 6.1 illustrates the architecture of a VPLS WAN service. Each customers edge (CE) device connects to a PE router that examines the destination address and adds a virtual channel label to each Ethernet packet. The packets are then directed via the MPLS switched routers to the PE router at the other end. In this way, VPLS enables all connections to appear as one Ethernet network. The solution appears as a single LAN that may span across cities and even countries, thus extending the network beyond the metropolitan area.
Chart 6.1: Illustration of an Ethernet WAN solution via VPLS

In-house Expertise

In-house network expertise requirement is low as businesses are able to outsource the management of their networks to service providers

Suitable for enterprises that have in-house network expertise for management

Source: Frost & Sullivan

CE
Customer Site

PE

Migration from Legacy to Ethernet Alternatives: Technical Checklist

PE CE
Customer Site

MPLS Core

CE
Customer Site

PE
Source: Frost & Sullivan

To cater to the increasing demand for flexibility, performance and bandwidth requirements of customers, connection oriented legacy technologies such as FR and ATM are falling short. Since a virtual circuit needs to be configured manually between each site, supporting MP2MP connectivity for greater number of sites can be very complex and expensive. Hence, neither FR nor ATM seems suited for today's business needs and enterprises have thus begun considering other WAN alternatives such as Ethernet VPNS, or IP-VPN. Chart 6.3 illustrates a LAN service initially based on an ATM network. User sites, CE 1 and CE 2, are attached to Ethernet bridges, BR 1 and BR 2, with ATM uplinks. The ATM uplinks are connected to ATM switches forming a full or partial mesh over the ATM network.
Chart 6.3: Illustration of Network Migration from legacy to VPLS

Chart 6.2: Comparison of MPLS and VPLS

Key Requirements Maintain Routing Control Number of Sites

MPLS Rests with the service provider Suitable for higher number of sites aSuitable if bandwidth requirement per branch is lower than 10 MbpsMPLS. Relatively more expensive to deploy than VPLS

VPLS Rests with enterprises More suitable for small number of sites Attractive solution if bandwidth requirement per branch is beyond 10 Mbps Enterprises are able to take advantage of the low cost and ubiquity of Ethernet Offers more security management option as network management and control rests with enterprises Offers simplified WAN management. Business are able to take advantage of their existing local Ethernet interfaces and extend their network into the WAN

CE1 BR 1 ATM 1

VPLS PES3

Ethernet PW

CE3

Bandwidth Scalability

VPLS PES3 BR 2 CE2 ATM 2 VPLS PES3

Ethernet PW

CE4

ATM
Old Site

VPLS
New Site

Cost Management

Source: Alcatel, Frost & Sullivan

Security

Meshed connection allows improved security

The migration of customers from the ATM based network onto the new VPLS network takes place over a few phases. In the initial phase, a number of customer sites, i.e. CE 1 and CE 2, will have existing connection to the ATM network, while new sites, i.e. CE 3 and CE 4, will be connected to the new VPLS network. In order to provide connectivity between the ATM network and the VPLS network, a number of ATM Virtual Connections (VCs) are configured at the boundary between the two networks. Each VC connects user ports on the Ethernet switch in the ATM network to a dedicated VPLS gateway provider edge (PE) router. The Ethernet frames are sent and received on an ATM VC using bridged encapsulation, and either of the gateways, PE 1 or PE 2, reassembles the protocol and processes the frames. In this manner, multiple VPLS can be supported to

Simplify WAN Management

Not suitable if the enterprise requires a simplified WAN management, especially for MP2MP connectivity

F&S on Ethernet

provide isolation between multiple users. The technical checklist for migration would consist of the following steps: Decide on the time frame for migration by mapping out the network performance metrics before and after the migration Decide on the interoperable mechanism for the migration. This is usually dependent on the length of the migration. One option is to migrate directly by moving to an Ethernet switched architecture with node-level reconfigurations or the second option is to choose on a node by node depending on the criticality of the node. In both cases, as highlighted in chart 6.3, it is necessary to have the highspeed backbone in place to bridge the ATM and VPLS network Eliminate the non-routable protocols, if any, and mismatches in frame sizes to ensure smoother migration Check the Layer 2 setup in terms of VLANs on the right trunks, PVCs, etc. Check Layer 3 wherever applicable in terms of routing tables, performance pings and trace routes Check the underlying physical infrastructure of the service provider especially in cases where there is Layer 2 emulation. At the end of the day, a lot of network metrics depend on Layer 1 connectivity Check at an application level : VoIP, video, backup, recovery, SAN replication

services. It is imperative that an enterprise choose a carrierclass service which is able to offer a diversified portfolio of products and services to fit specific business needs and hence create a solution for them. 2: Physical infrastructure and on-net coverage In a lot of cases, the ability of the service provider depends on the quality of the physical infrastructure irrespective of whether it is Ethernet or MPLS services. Enterprises must understand the extent of the service providers coverage at the Layer 1 level. If coverage is not present in an area, the service provider may have business arrangements with other service providers. However, since the service does not have direct control over the partner circuit, providing enterprise customers with same QoS in all the locations would be an issue. Hence, for enterprises having regional or global offices, it is important that they choose a service provider which offers wide on-net coverage. 3: Robust SLA Based on the type of service required (data, voice or video), the enterprise must demand a strong SLA to meets its expectation. Latency and jitter control, packet delivery and end-to-end service availability are some basic SLA parameters that enterprises should certainly consider. In some cases a topology level diverse SLAs which provide an end-to-end guarantee or application level SLAs would be needed for mission critical networks. 4: Ensure bandwidth scaling and segmenting for seasonal needs Month end closing transactions or large file downloads such as FTP, multimedia content and graphic content may result in spikes in bandwidth consumption, which could effectively starve other applications of bandwidth. Interactive traffic and latency sensitive traffic are particularly susceptible to problems caused by such bursty traffic, and the competition for bandwidth can result in poor and unpredictable application response time. Hence, having bandwidth scalability options is very necessary for enterprises as the demand for bandwidth may constantly vary. Ability of service providers to segment multicast and unicast traffic is also very critical with high video based applications. 5: Differentiated CoS Today's enterprises are much reliant upon multiple business critical applications, requiring bandwidth that could exceed the available bandwidth of the network. Hence, critical real-time traffic could be delayed or disrupted as much of the resources would be consumed by less critical applications. The result is an inefficient and cost-ineffective use of valuable IT resources. To address this problem, enterprises, especially if they have strict latency and jitter control requirements, should demand CoS feature that would enable them to prioritize multiple competing traffic classes in order to ensure high service levels for performance-sensitive applications. 6: End-to-end management Many enterprises are out-tasking their Ethernet service

7. Choosing the Right Service Provider for the Ethernet Solution

The key considerations for the enterprise before choosing a service provider are: Bandwidth Ability to add, delete and change sites without service interruption Service Level Agreements (SLAs) Topology level SLAs over standard performance SLAs Protection Self-healing protection against cable cuts Priority or Class of Service (CoS) Frames sizes (impacts efficiency of bandwidth) Experience In providing Carrier Ethernet Services When choosing a service offering, it is imperative that enterprise ensures that it gets a service best suited for its own business needs. While there can be no specific guideline on what should be the ideal solution, enterprise should at least consider the following buying criteria when opting for an Ethernet solution. 1: Solution with multiple access and bandwidth options and not just a service Today, businesses use Ethernet services for a variety of connectivity options including dedicated access to the Internet, global access to a MPLS platform, private line access to a managed area network or WAN, and switched access to a virtual private network (VPN). Although most implementations are limited to EPL, market trends indicate a growing demand for ETree (P2MP) and ELAN (MP2MP)

F&S on Ethernet

management to a managed services provider in a bid to save money and to achieve better network performance. The service provider provides traffic reporting, online provisioning and management and monitors the service constantly to ensure high availability and dependable performance. With these reports the customer can add or scale back bandwidth, add security services such as encryption of sensitive data, and adjust QoS. Managed Ethernet service offers some distinct advantages to enterprises. Firstly, businesses, by outsourcing routine tasks, would be able to free IT staff resources in order to focus on the core business. Secondly, managed services enable reduced hardware costs. 7: Industry standards and certification From the end users perspective, certification can provide the required confidence in their Ethernet services' reliability and consistency. MEF 9 and MEF 14 are service-oriented test specifications defined by MEF: MEF 9 Certification is to verify that services delivered to the end users conform to MEF technical specification, ensuring global equipment/services compliance and interoperability. The certification defines tests that can be applied to Ethernet service types EPL, EVPL and ELAN services. MEF 14 Certification, which was launched in mid 2007, is designed to verify the quality and performance of Ethernet services by providing specific guidelines for QoS parameters.

Chart 8.1: Critical Success Factors for service providers and SingTels Initiatives

Critical Success Factors Diversified Portfolio

Initiative by SingTel ConnectPlus E-VPN A2A (ELAN) ConnectPlus E-Line (EPL) ConnectPlus E-VPN P2P/P2MP (EVPL) Metro Ethernet (E-tree, EPL and ELAN) Granular bandwidth of up to 1 Gbps and beyond. Value-added services include: Bandwidth-on-Demand Disaster Recovery (DR) Exchange Diversity Standby Scheme Router Management Service Backup Port

Service Features

Quality of Service (QoS)

4 classes of service Standard, Business, Premium non-real time and Premium Real time Provide burstible and Bandwidth-on-Demand service The service offers the customers an end-to-end managed, secured and scalable WAN solution such as router management services, traffic utilization reports etc Island-wide in Singapore Global reach to 37 major cities in US, Europe, Middle East, with the strongest foothold within Asia Pacific In-country reach via NNI with strategic partners MEF Member since August 2007 MEF-9 certified in Jan 2008 Aims to be MEF-14 certified by 2009 Winner of the Best in Business category at the 2008 Carrier Ethernet Service Provider of the Year Awards for Asia Pacific (organized by MEF)
Source: SingTel, Frost & Sullivan

Managed Services

8. Service Provider Critical Success Factors and SingTels Ethernet Portfolio

To help enterprises migrate to Ethernet solutions, service providers require in-depth understanding of the customers business processes as well as other business needs. It is imperative for the service provider to have a customized network transformation strategy rather than a one size fits all approach. Based on the customer buying criteria discussed in the above section, following is a set of critical success factors which can be used to differentiate one service providers offerings from another. Diversified Portfolio Service Features Quality of Service (QoS) Managed Services Geographic Availability Industry Standards and Certifications

Geographic Availability

Industry Standards and Certifications

SingTels Ethernet diversified portfolio of services includes ConnectPlus E-VPN A2A (ELAN), E-VPN P2P/P2MP (EVPL), E-Line (EPL) and MetroEthernet (EVPL, EPL and ELAN) services. Using VPLS technology coupled with SingTels own private MPLS backbone, enterprises can benefit from a cost-effective, managed, secured and scalable WAN solution, supported by its 24x7 network operations centers (NOCs). SingTel has the best coverage that serves island-wide in Singapore and has global reach to 37 major cities in US, Europe, Middle East, with the strongest foothold within Asia Pacific. The extensive cable investments in consortium and private cables in highly-regulated and hard-to-reach countries such as Indonesia, India and China, offers enterprises access to key growth economies.

F&S on Ethernet

SingTel received the MEF 9 certification, in January 2008, which is likely to enable enterprises to quickly identify the optimal solution from diverse choices between best-effort and carrier-grade Ethernet services. SingTel was also the winner of the Best in Business category at the 2008 Carrier Ethernet Service Provider of the Year Awards for Asia Pacific that was organized by MEF, a recognition which reaffirms the service providers position as the technology front runner among Asian carriers. From Frost and Sullivans assessment of SingTels Ethernet services offering on the critical success factors, it was observed that the service provider is well-positioned to offer a strong value proposition to enterprises. With its strong portfolio of services, the company is able to provide customers with an ideal platform for converged real-time, mission-critical and latency-sensitive applications, such as a VoIP, video-conferencing, CRM, ERP. Achieving Scalability and Cost-Efficiency A Case Study As a certain investment banking business grew in Asia Pacific, the institution experienced a surge in data traffic between its headquarters in Europe and offices in Asia. The existing FR network could no longer scale up cost effectively to meet its expansion needs. Scalability and cost were two main concerns as the key business driver for the institution was to enable direct communications between multiple sites. At higher bandwidths, FR could not provide the necessary bandwidth granularity. Moreover, given the mission-critical nature of the data, the network also had to be robust enough to withstand disruptive events and there were about 10 different SLAs that the service provider had to meet. Due to its extensive footprint in Asia Pacific and its wide portfolio of solutions, SingTel was chosen as the service provider. SingTel reportedly took less than four months to implement the solutions covering more than 17 sites in the region. According to the institution, SingTel was able to demonstrate its extensive experience by rolling out the deployment across Asia quickly enough and with minimum disruption to its business. The service providers strong relationship and robust network-to-network interfaces (NNI) with its partners in the region was apparent throughout the deployment. By migrating from its old hub and spoke frame relay network to a full P2P, MP2MP access topology, the institution is now able to connect new locations, users and applications much faster and with greater ease. Moreover, from the cost savings that it is experiencing, the institution expects its payback target to be achieved in less than two years time.