The continued declines in network service prices and the resulting tight capital budgets require intense focus on maximizing service margins on the deployed capital. This focus must extend not just to service pricing and marketing efforts but to real architectural decisions. Often architectural decisions are based on network models and efficiency studies that do not take into account all products and services that may be affected by the results. The underlining assumption is that the most efficient technology and architecture will always produce the most cost effective products and services. Our goal here is to describe a methodology that will allow network architects to produce a network model that clearly identifies the cost of each service on the network and the impact of technology and architecture to each of those services. These relations will enable technology decisions to be more subject to overall business strategy, focusing architectural work and capital deployments not just in a targeted product market, but also in the day to day deployment of network devices. One benefit of the approach described here is that the practice of this methodology requires only bulk traffic statistics from the network rather than building a backoffice system to capture all provisioning data from each circuit and then to manipulate large volumes of data for accurate results.

© 2006 Optical Society of America

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