Report recommends the use of MPLS to meet new network challenges
Report recommends the use of MPLS to meet new network challenges
A new report by Analysys Mason intends to help operators to manage the increase in packet-switched traffic on their networks.
The authors of the report claims that the choice between technologies such as MPLS and OTN is a complex one and should be considered carefully. To ensure that operators choose the ultimate strategy in terms of technical offering and economy, several factors need to be considered.
For example, the report claims that MPLS will generate more revenue for operators (between 58 per cent and 81 per cent to be exact) than OTN, for their capex investment. Lead author, Franck Chevalier, explained, “The traditional operator’s business model is being challenged, primarily because of the de-integration of the traditional ‘service-network’ vertical model, which is forcing network service providers and network operators to carry an ever-increasing amount of traffic over the top (OTT)”
He added that the challenge is that service providers need to be able to carry this OTT traffic without charging more, stretching their margins further. Lower costs, have, as a result, become an important aspect for operators. Chevalier explained, “The core network has become a commodity asset, and the goal becomes relentless pursuit of a strategy and architecture that takes every single bit of cost out of that network."
The report’s co-author added that unpredictability is also a challenge, with little being known about the amount of traffic that will need to be carried by a network.
Several strategies are being adopted to cope with the new challenges, including using MPLS or OTN approaches, or combining the two. For example, MPLS could be implemented, while OTN multiplexers could be used to provide traffic bypass
The report concludes that MPLS offers cost-effectiveness and more flexibility, allowing providers to differentiate between different types of traffic and disassociate traffic bandwidth and the provision of capacity, among other things.
Businesses looking to move services into the cloud, should evaluate the performance of their existing network and consider setting up a leased line or MPLS network.
