A MEF-sponsored study using a sample configuration of just three services (ATM,
Frame Relay, and Internet access) and replacing it with a single 10/100 Ethernet service
showed a capital savings of nearly 95 percent! The initial cost of $2500??“$7500 per
WANside port was reduced to $300 for a 10/100 Ethernet port. In addition, there is an
opportunity to optimize the total bandwidth required using Ethernet and potentially
further reducing the port costs (so fewer ports may be required).
Lower Operational Expenditure (OPEX) Using Ethernet (access) services, as mentioned
previously, an enterprise reduces not only the amount (and cost) of equipment but
Figure 1.14 MEF commissioned study on total savings using Ethernet services
3-Yr. Total Cost Comparison
$3000
$2500
$2000
$1500
$1000
$500
$-
000s of $$$
Metro Ethernet Traditional (FR) Traditional (PL)
Dedicated Internet Access Private Data
Ethernet Costs = $500K
Private Line Costs = $2500K
Ethernet: From LAN to the WAN 35
also the attendant operational expenditure that would have been associated with the
provisioning, operationalizing, and managing these multiple devices, each supporting
a different technology.
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