Alcatel 7450 Ethernet Service Switch Release 1.0 IP Division, FCG CONFIDENTIAL (cid:151) INTERNAL USE ONLY March 2004 Alcatel 7450 Ethernet Service Switch, Release 1.0 i Table of Contents 1. Introducing the Alcatel 7450 Ethernet Service Switch 1 1.1 What is the Alcatel 7450 Ethernet Service Switch? 1 1.2 How is the Alcatel 7450 ESS Positioned? 2 1.3 What Service Providers Need 6 1.4 What is the Ethernet Service Switch Opportunity? 8 2. Grabbing the Customer(cid:146)s Attention 8 2.1 Why do Customers Need the Alcatel 7450 ESS? 8 2.2 MPLS Enables Carrier Grade Metro Ethernet 10 2.3 Conclusion 15 3. How to Sell and Win Against the Competition 16 3.1 Alcatel 7450 ESS Positioning 16 3.2 The Competition(cid:146)s Products 17 3.3 Carrier Focused Competitors 18 3.4 Enterprise Focused Competitors 28 3.5 Commodity Priced Competitors 32 3.6 Alcatel 7450 ESS Features Leave Competition Stranded 36 3.7 Industry(cid:146)s Highest Density 37 3.8 How will our Competitors Attack the Alcatel 7450 ESS? 39 4. Recognizing an Alcatel 7450 ESS Customer 41 4.1 ILECs 41 4.2 IXCs 43 4.3 Cable MSOs 44 4.4 Metro Ethernet Service Providers 45 4.5 Utility and Transport Companies 46 4.6 CLECs 47 4.7 Key Selling Arguments 48 5. Information Sources 50 5.1 Key Contacts 50 5.2 Alcatel Web Sites 50 <DOCUMENT TYPE: SALES GUIDE> For internal Alcatel use only. Information is confidential and subject to change. ALCATEL > Alcatel 7450 Ethernet Service Switch, Release 1.0 ii 5.3 Competitive Web Sites 51 5.4 Other Related Web Sites 51 5.5 Availability 51 6. Glossary of Terms 52 7. Alcatel 7450 ESS-Enabled Services and Applications 56 7.1 Ethernet VLL Services 56 7.2 Ethernet VPLS 58 7.3 Service-Aware Ethernet Aggregation Applications 60 8. Alcatel 7450 ESS in Detail 65 8.1 Flexible Ethernet Access 65 8.2 Fully Programmable 10 Gb/s Fast Path for Investment Protection 66 8.3 Guaranteed and Measurable SLAs 66 8.4 High Performance and Scalability 67 8.5 Easy and Effective Service-Aware OA&M 67 9. Additional Information Sources 69 9.1 Customer Support/Professional Services 69 9.2 Pricing 69 9.3 Order Entry 69 9.4 System Operation and Maintenance 69 9.5 Fulfillment 69 > ALCATEL For internal Alcatel use only. Information is confidential and subject to change. <DOCUMENT TYPE: SALES GUIDE> Alcatel 7450 Ethernet Service Switch, Release 1.0 1 1. Introducing the Alcatel 7450 Ethernet Service Switch 1.1 What is the Alcatel 7450 Ethernet Service Switch? The Alcatel 7450 Ethernet Service Switch (ESS) sets a new standard for the delivery of reliable and scalable metro Ethernet services. The Alcatel 7450 ESS enables metro service providers to deliver the new services demanded by their customers, with the minimum capital expenditure (CAPEX) and operational expenditure (OPEX). The Alcatel 7450 ESS is based on the same technology as the industry(cid:146)s most advanced service router, the Alcatel 7750 Service Router (SR). The Alcatel 7450 ESS is available at initial release in two chassis sizes: the one-slot ESS-1 and seven-slot ESS-7 (see Figure 1). Key messages for the Alcatel 7450 Ethernet Service Switch The Alcatel 7450 Ethernet Service Switch (ESS) is designed to meet the needs of carriers who want to deliver profitable and scalable metro Ethernet services over Internet protocol (IP)/multiprotocol label switching (MPLS)-based networks. The Alcatel 7450 ESS offers: New service revenue opportunity > Service-oriented architecture designed specifically for carrier metro Ethernet service delivery for scalable Ethernet aggregation, virtual leased line (VLL) services and virtual private LAN service (VPLS) > Service-level quality of service (QoS) for service differentiation with structured service pricing and billing > Improved time to market for new, differentiated services Investment protection > Generational leap, carrier class technology that provides high density and scalability with programmable fast path architecture that ensures forklift-free upgrades OPEX reduction > Extensive, end-to-end, service-aware Ethernet operations, administration and maintenance (OA&M) toolkit that speeds troubleshooting <DOCUMENT TYPE: SALES GUIDE> For internal Alcatel use only. Information is confidential and subject to change. ALCATEL > Alcatel 7450 Ethernet Service Switch, Release 1.0 2 Figure 1: Alcatel 7450 Ethernet Service Switch Alcatel 7450 ESS Alcatel 7450 ESS Seven-slot One-slot The Alcatel 7450 ESS introduces the following features to address price competitiveness in the carrier metro Ethernet services market: > Seven-slot and one-slot chassis > Fabric modules > I/O modules (IOM) > High density Ethernet media dependant adapters (MDAs) > Packet over SONET/SDH (POS) MDAs > Proven Alcatel 7750 SR software, streamlined and optimized for the metro Ethernet market 1.2 How is the Alcatel 7450 ESS Positioned? The reason for developing the new Alcatel 7450 ESS is to deliver on Alcatel(cid:146)s vision of a metro Ethernet network that scales to support a new generation of reliable and robust Ethernet services for both business and residential customers. The Alcatel 7450 ESS provides the following key benefits: > Addresses service provider demands for a single network architecture that scales services from metro to regional to national to international. Helps reduce CAPEX with industry-leading density and service scalability. > Enables service providers to deliver reliable and robust Ethernet services with accurate per- service bandwidth guarantees and accounting > Reduces OPEX through integrated operations, administration and maintenance (OA&M) capabilities for rapid service assurance and troubleshooting > ALCATEL For internal Alcatel use only. Information is confidential and subject to change. <DOCUMENT TYPE: SALES GUIDE> Alcatel 7450 Ethernet Service Switch, Release 1.0 3 > Reduces time to market for key features. In certain cases (e.g., virtual private LAN services (VPLS)), we are at least six to eight months ahead of the competition > Provides a differentiated value proposition over the competition in carrier metro Ethernet deals (i.e., the 7450 ESS provides MPLS switching rather than Ethernet bridging only, which means that Alcatel will not just be a (cid:147)me too(cid:148) player) The Alcatel 7450 ESS can be deployed by service providers for a wide range of metro Ethernet applications , as shown in Figure 2. That require advanced Ethernet Layer 2 virtual private network (VPN) features, flexible multiprotocol label switching (MPLS), 802.1P/Q, stacked virtual local area networks (VLANs), and robust service management, troubleshooting and billing features. Figure 2: Delivering Profitable Ethernet Services End-to-End Management > Business services 5620 Network and Service Mangement Access Aggregation Core (cid:149) Direct Internet Access (7750) (cid:149) IP VPNs (2547bis) (7750) T5C-L3 Internet (cid:149) VLL (point-to-point) (7x50) 7450 ESS (cid:149) VPLS (multipoint) (7x50) T5C-L3 MPLS > Service-aware Ethernet 7450 ESS Switching aggregation (7450 ESS) T5C-L3 7750 SR (cid:149) DSLAM and EPON 7750 SR IP / MPLS aggregation 7450 ESS Core (cid:149) L2/L3 Internet access DSLAM backhaul IWF FTTU (cid:149) IP-VPN backhaul 7450 ESS 7670 RSP 7750 SR > Ethernet and frame T5C-L3 relay/ ATM interworking FR, ATM & Ethernet to FR/ATM Ethernet interworking (cid:149) Alcatel 7670 RSP FR UNI Ethernet ATM UNI 7270 MSC <DOCUMENT TYPE: SALES GUIDE> For internal Alcatel use only. Information is confidential and subject to change. ALCATEL > Alcatel 7450 Ethernet Service Switch, Release 1.0 4 As shown in Figure 3, the Alcatel 7450 ESS provides flexible metro Ethernet access options. Figure 3: Metro Ethernet Access Options Metro Access Metro Aggregation 7450 ESS IP/MPLS Core > MPL S switching MPLS Service > MPLS fast reroute MPLS Switching Switching Network Network > End-to-end service OA&M MTU 7750 SR 7450 ESS > Deterministic QoS(H-QoS) 7450 ESS 7450 ESS > 802.1w, RSTP MPLS IP/MPLS Core > VLAN Ethernet Bridging Switching Service Network Network > SVLAN (Q-tags/Q-in-Q) 7750 SR > IEEE 802.1p, H-QoS 7450 ESS Telco Systems 7450 ESS The Alcatel 7450 ESS interoperates with other vendors(cid:146) equipment, enabling easy integration into networks with third party Ethernet switches and routers, as shown in Figure 4. Figure 4: Alcatel 7450 ESS Interoperates with Third Party Switches End-to-End Management 5620 Management Portfolio Access New Metro Backbone Existing Metro Access Ethernet Internet Ethernet 7450 ESS Ethernet Ethernet CLE MPLS IP / MPLS Bridging CLE Metro Backbone / STP 3rdParty Ethernet Router Ethernet Ethernet 7450 ESS 7750 SR 3rdParty Switch CLE > ALCATEL For internal Alcatel use only. Information is confidential and subject to change. <DOCUMENT TYPE: SALES GUIDE> Alcatel 7450 Ethernet Service Switch, Release 1.0 5 The Alcatel 7450 ESS expands Alcatel(cid:146)s metro networking portfolio to fully address service providers(cid:146) requirements (see Figure 4). The Alcatel 7450 ESS directly addresses service providers(cid:146) concerns as they roll out metro Ethernet services in 2004 and beyond. The Alcatel 7450 ESS enables guaranteed service level agreements (SLAs) for predictable Ethernet private data services that are scalable, and delivered over a carrier grade infrastructure with troubleshooting and Ethernet OA&M capabilities. Figure 5: Alcatel 7450 ESS Fills the Carrier Metro Ethernet Gap eee ccc iii rrr PPP PPPooosssiiitttiiiooonnniiinnnggg::: SSSeeerrrvvviiiccceee rrrooouuuttteeerrr FFFooocccuuusss:::IIIPPP eeedddgggeee ssseeerrrvvviiiccceeesss (((PPPEEE rrrooouuuttteeerrr))) SSSeeerrrvvviiiccceeesss::: VVVLLLLLL,,, VVVPPPLLLSSS,,, DDDIIIAAA,,, IIIPPP---VVVPPPNNN,,, LLL222 VVVLLLLLL (((FFFRRR///AAATTTMMM))) CCCooommmpppeeetttiiitttooorrrsss::: PPPEEE rrrooouuuttteeerrrsss 777777555000 SSSRRR PPPrrroooddduuuccctttsss:::AAAlllcccaaattteeelll 777777555000 SSSRRR---111,,, SSSRRR---444,,, SSSRRR---777,,, SSSRRR---111222 PPPooosssiiitttiiiooonnniiinnnggg::: EEEttthhheeerrrnnneeettt ssseeerrrvvviiiccceee ssswwwiiitttccchhh FFFooocccuuusss:::CCCaaarrrrrriiieeerrr mmmeeetttrrrooo EEEttthhheeerrrnnneeettt aaaggggggrrreeegggaaatttiiiooonnn aaannnddd cccooorrreee MMMiiissssssiiinnnggg pppiiieeeccceee ooofff ttthhheee SSSeeerrrvvviiiccceeesss::: VVVLLLLLL,,, VVVPPPLLLSSS,,, EEEttthhheeerrrnnneeettt aaaggggggrrreeegggaaatttiiiooonnn pppuuuzzzzzzllleee 777444555000 EEESSSSSS CCCooommmpppeeetttiiitttooorrrsss::: LLL222///LLL333 EEEttthhheeerrrnnneeettt ssswwwiiitttccchhheeesss PPPrrroooddduuuccctttsss:::AAAlllcccaaattteeelll 777444555000 EEESSSSSS (((EEESSSSSS---111 aaannnddd EEESSSSSS---777))) PPPooosssiiitttiiiooonnniiinnnggg::: EEEttthhheeerrrnnneeettt ssswwwiiitttccchhh FFFooocccuuusss:::EEEnnnttteeerrrppprrriiissseee aaannnddd sssooommmeee CCCLLLEEE aaappppppllliiicccaaatttiiiooonnnsss SSSeeerrrvvviiiccceeesss::: BBBrrriiidddgggiiinnnggg CCCooommmpppeeetttiiitttooorrrsss::: EEEnnnttteeerrrppprrriiissseee EEEttthhheeerrrnnneeettt ssswwwiiitttccchhheeesss OOOmmmnnniiiSSSwwwiiitttccchhh PPPrrroooddduuuccctttsss:::OOOmmmnnniiiSSSwwwiiitttccchhhfffaaammmiiilllyyy SSSeeerrrvvviiiccceeesss The Alcatel 7750 SR is positioned to address the high-end routed services market, i.e., RFC- 2547bis Internet protocol VPNs (IP-VPNs), and it provides inter-metro provider edge (PE) routing functionality. The Alcatel 7750 SR supports all Alcatel 7450 ESS features plus additional features and service capabilities, such as Internet routing, border gateway protocol (BGP), RFC-2547bis IP-VPNs, higher capacity, Layer 2 virtual leased line (VLL), frame relay, asynchronous transfer mode (ATM), and channelized interfaces. The Alcatel OmniSwitch is optimized for the enterprise market. Therefore, it does not support carrier features such as MPLS, stacked VLAN, accounting, etc. Differences and similarities with Alcatel 7750 SR The Alcatel 7450 ESS is based on the same technology foundation as the Alcatel 7750 SR, but there are key differences between the two products. <DOCUMENT TYPE: SALES GUIDE> For internal Alcatel use only. Information is confidential and subject to change. ALCATEL > Alcatel 7450 Ethernet Service Switch, Release 1.0 6 The MDAs, IOMs and fabric modules are not interchangeable between the two systems. They have separate chassis, modules and MDAs; separate part numbers and list prices; and distinct roadmaps. The Alcatel 7450 ESS has a separate software load from the Alcatel 7750 SR. The Alcatel 7450 ESS capabilities are focused on enabling the delivery of metro Ethernet services only. The Alcatel 7450 ESS does not have an upgrade path to the Alcatel 7750 SR or to a PE router. The chassis of the two systems only look the same to help reduce manufacturing costs; the functionality, features and modules are different and are targeted at different markets. However, the Alcatel 7450 ESS does benefit from leveraging Alcatel 7750 SR technology in many ways. It has enabled Alcatel to deliver more quickly a strong, differentiated metro Ethernet product that is architected for the carrier market, not an enterprise technology hack. The Alcatel 7450 ESS leverages several aspects of the Alcatel 7750 SR technology, including: > Flexible fast path forwarding technology > MPLS for VLL and VPLS Ethernet services > Quality of service (QoS) implementation (hierarchical QoS (H-QoS)) > Service accounting and billing > Service OA&M toolkit (which includes service ping and service mirroring) The two systems share a common element, network and service management platform (cid:151) the Alcatel 5620 Service Aware Manager (SAM) and related products, and common command line interface (CLI) and SNMP management capabilities. The 5620 SAM products include the Alcatel 5620 SAM Element Manager (5620 SAM-E), Alcatel 5620 SAM Provisioning (SAM-P), and Alcatel 5620 SAM Assurance (SAM-A). 1.3 What Service Providers Need Carriers are increasingly deploying multipoint, point-to-point and Ethernet Internet access services to complement new IP-VPN services and existing frame relay, ATM, private LAN and transparent LAN service (TLS) services. In their move toward Ethernet service deployment, service providers are looking to grow their revenues, lower their costs and increase their capacity. Ethernet based on an MPLS platform is seen as the vehicle to offer these new, advanced Ethernet services with high worldwide growth potential. This approach has double- and triple-digit compounded annual growth rates (CAGR), as shown for the U.S. market in Figure 6. > ALCATEL For internal Alcatel use only. Information is confidential and subject to change. <DOCUMENT TYPE: SALES GUIDE> Alcatel 7450 Ethernet Service Switch, Release 1.0 7 Figure 6: VPLS, Ethernet Private Line (EPL) and Ethernet Internet Access (EIA) Services are Growing Rapidly U.S. Ethernet Services Forecast 4,000 ) s n 3,500 o i ll 3,000 i M 2,500 D S U 2,000 ( e 1,500 u n e 1,000 v e 500 R 2002 2003 2004 2005 2006 2007 EEPPLL ((PP22PP)) EEIIAA VVPPLLSS SSeerrvviiccee CCAAGGRR VVPPLLSS 113344..22%% Source: Yankee Group, August 2003 EEPPLL 5588..66%% EEIIAA 110022..44%% The early entrance of Ethernet service provider startups has created a ripple effect among all types of more established carriers. Incumbent service providers are embracing Ethernet services and migrating toward a stable, scalable, carrier grade infrastructure that allows them to deliver the services and features their end customers want without building network overlays of traditional, enterprise class Ethernet switches. The following industry validation illustrates this trend: > (cid:147)MPLS will play a key role in both the aggregation of different traffic types using Ethernet transport as well as in providing a mechanism for traffic prioritization and QoS guarantees.(cid:148) Source: Probe, September 2003 > MPLS and Ethernet will become more strongly linked in the strategic plans of carrier data network providers. Source: Probe, September 2003 > (cid:147)MPLS will be the clear winner for VPN creation and consolidation of networking infrastructure.(cid:148) Source: AT&T > (cid:147)Using MPLS removes the limit of 4,096 VLANs, making it a more scalable Layer 2 VPN than (cid:147)pure(cid:148) Ethernet. It also allows service providers to leverage the resiliency and traffic engineering characteristics of MPLS, which some believe is a shortcoming of the spanning tree protocols. Using MPLS also enables an enterprise to deploy Ethernet at some locations, maintain FR and ATM at other locations and still have a VPN whereby all locations appear to be on the same LAN.(cid:148) Source: RHK, May 2003 <DOCUMENT TYPE: SALES GUIDE> For internal Alcatel use only. Information is confidential and subject to change. ALCATEL >
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