Carrier Ethernet, a strategic enabler of Cloud Computing, delivers the affordable bandwidth and scalability needed for this new style of computing. The ability of enterprises to quickly and easily tap into high-bandwidth Ethernet services paves the way for the massive transition to Cloud Computing. Ethernet delivers a universal “jack in the sky” and a fundamental technological enabler of the cloud.
Ethernet has been a rising technology star in the MAN/WAN for more than 5 years, offering carriers and end users bigger pipes at lower prices. The goal of using Ethernet for resilient, QoS-based transport and end-user services has become a reality with services universally available worldwide. Although, IEEE 802.3 based, Carrier Ethernet introduces some important new architectural ideas, characterized by five attributes that differentiate it from LAN-based Ethernet, namely:
Carrier Ethernet continues to expand rapidly in revenue for Service Providers, and is expected to exceed 19 Billion (USD) in 2010! In fact, much of the underlying infrastructure for metroplitan and wide-area networks will be Ethernet based for Cloud Computing due to its scalability, flexibility, and affordability. According to industry analysts, Ethernet services are steadily eroding Frame Relay, ATM, and Private Line (D1/D3) service revenues. Cloud Computing will accelerate the cross over to next generation networking.
Traditional carrier transport networks, such as SONET/SDH, were designed for predictable resiliency and operations, administration, maintenance and provisioning (OAMP), not flexibility and cost-effectiveness. Ethernet’s ability to deliver new services flexibly and at lower cost points makes it an excellent fit for cloud users. Its software provisioned bandwidth, scaling from 1Mbps to 1Gbps, guarantees its future as the “universal jack in the sky” for the cloud.
Ethernet’s major capabilities and benefits as it relates to the cloud are explained in this article.
Ethernet services span the range for point-to-point, point-to-multipoint, and any-to-any multi-point. This flexibility is crucial for the cloud as applications are added and more users access resources in multiple data centers. Ethernet’s adoption by carriers and enterprises will increasingly enable the cloud to reach users on a worldwide basis. The basic connectivity services are shown in the illustration:

Enterprises flexibility to easily and cost effectively to evolve as cloud services are added.
Ethernet’s evolution into the underlying Cloud infrastructure was not envisioned in the beginning when Metro Ethernet was first marketed in 2001. Ethernet’s major increase in bandwidth at an affordable price compared to traditional services, such as T1/T3 or OC-3 , was recognized as an basic enabler of more traditional application such as remote hosting.
Legacy networks (e.g. Frame Relay) are much more costly in terms of bandwidth and management. Today a Service Provider can increase Ethernet bandwidth with a few commands using a software application. Using T1 or T3 or other older telecommunication services meant long delays and expensive truck rolls to re-provision the network at the customer location. Ethernet changed all that! Now as more bandwidth is needed, the Service Provider can respond immediately. The scalability and software-based provisioning has transformed the underlying network, and is a perfect fit for the networking requirements of Cloud Computing.
| Cloud end-user Requirements | Ethernet Infrastructure Solutions |
| National and Global Ethernet footprint with easy branch connectivity | Ethernet-over-copper and over Optical fiber connections |
| High reliability and protection | 50 ms restoration |
| Low jitter and low latency | Quality of service capabilities and hard QOS |
| Customer network management | Online end-user tools for on-demand service |
| Highly Scalable service | VLAN stacking, H-VPLS, and 10 Gigabits per port |
As Enterprises outgrow their T1 or Frame Relay network, the affordability and scalabilty (1Mbps to 1Gbps) with fast turn up of bandwidth using are crucial capabilities. Customers are attracted by the price. Ethernet appeals to the IT department’s current knowledge and technology comfort zone. Some sample prices are listed in the chart.
Ethernet provides the ideal underlying connectivity for Cloud Computing, and is helping to fuel its growth.
Enterprises like the affordability and simplicity of Ethernet. IT organizations possess in-house knowledge and comfort with the technology. As customers rapidly migrate to Ethernet the underlying network infrastructure will deliver the performance and scalability required by Cloud Computing to flourish.
Network service providers have realized the Ethernet services market will grow into the billions of dollars in the next few years, simply by replacing the huge legacy TDM private line, ATM, and Frame Relay markets. Cable operators are adding Ethernet to their service portfolios, which appeals to small businesses. Even wireless operators are successfully using Ethernet for backhauling. Added to this will be new revenue from previously underserved or untapped sources, such as schools and local governments. The shift to Ethernet drives the overall Cloud Computing business case by delivering affordable connectivity.
Cloud Computing adds an entire new dimension to the value of the network.