NSP Study Analyses TCO Benefits Of COE V/s MPLS-TE

A new study by Network Strategy Partners (NSP) analyses the Total Cost of Ownership (TCO) benefits of Connection-Oriented Ethernet (COE) v/s Multiprotocol Label Switching - Traffic Engineering (MPLS-TE) as applied in Carrier Ethernet transport networks for traffic engineering and resource management. In this study, Connection-Oriented Ethernet uses Provider Backbone Bridging - Traffic Engineering (PBB-TE) and the Gridpoint E-TERM (Ethernet-Traffic Engineering and Resource Management) management system.

According to the study (Connection-Oriented Ethernet v/s MPLS-TE: An Ethernet Transport Layer TCO Comparison), a COE-based architecture significantly reduces TCO when compared to an MPLS-TE based architecture as COE architectures benefit from Ethernet switching hardware as transport elements and the Gridpoint E-TERM management system.

“Connection-Oriented Ethernet uses a transport paradigm similar to SONET/SDH, which is familiar to transport department technicians,” said Peter Fetterolf, partner of Network Strategy Partners. “MPLS-TE networks are equivalent to IP router networks that require a large staff of highly skilled and expensive engineers relative to those required for SONET/SDH equipment. Consequently, operational expenses for Connection-Oriented Ethernet are lower than those of MPLS-TE.”

Study Highlights

The study models the benefits derived in a metro aggregation network that offers wholesale Carrier Ethernet transport services that can be used to support service provider deployments of Triple Play services to residential households and/ or Carrier Ethernet services to enterprises.

The analysis shows that Connection-Oriented Ethernet reduces TCO over a five-year study period as compared to MPLS-TE by 43 percent. Specifically,

* CAPEX is 36 percent lower for Connection-Oriented Ethernet

* OPEX is 47 percent lower for Connection-Oriented Ethernet

See ‘Whitepapers’ at www.nspllc.com to download the studies.