Abstract

A capital expenditure model is a key requirement to evaluate multilayer (ML) metro and core network architectures. Based on the Internet protocol/multiprotocol label switching (IP/MPLS), MPLS-transport profile, optical transport network and WDM technology, a detailed capital expenditure model developed by researchers from system vendors and network operators is introduced. Besides current equipment and corresponding prices for the different layers, it also contains predictions for technology evolution and pricing until 2018. We show how to determine the price of an ML node by constructing it from components specified in the cost model. We use the model in a case study where we benchmark the price of an integrated IP/MPLS/WDM solution.

© 2013 Optical Society of America

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References

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  1. R. Huelsermann, M. Gunkel, C. Meusburger, and D. A. Schupke, “Cost modeling and evaluation of capital expenditures in optical multilayer networks,” J. Opt. Commun. Netw., vol.  7, no. 9, pp. 814–883, Sept. 2008.
    [CrossRef]
  2. B. T. Olsen, and K. Stordahl, “Models for forecasting cost evolution of components and technologies” [Online]. Available: http://www.telektronikk.com/volumes/pdf/4.2004/Page_138-148_rettet.pdf .
  3. Bob Metcalfe, “Toward terabit Ethernet,” Talk at OFC/NFOEC, February 2008 [Recording]. Available: http://www.youtube.com .
  4. S. Gringeri, B. Basch, V. Shukla, R. Egorov, and T. J. Xia, “Flexible architectures for optical transport nodes and networks,” IEEE Commun. Mag., vol.  48, no. 7, pp. 40–50, July 2010.
    [CrossRef]
  5. O. Gerstel, M. Jinno, A. Lord, and B. Yoo, “Elastic optical networking: a new dawn for the optical layer?” IEEE Commun. Mag., vol.  50, no. 2, pp. S12–S20, Feb. 2012.
    [CrossRef]
  6. “Spectral grids for WDM applications: DWDM frequency grid,” ITU-T Recommendation G.694.1 (pre-published) Feb. 2012.
  7. R. Duque, V. López, A. González, Ó. González de Dios, and J. P. Fernández-Palacios, “Cost evaluation of the integration of IP/MPLS and WDM elements,” in Proc. Optical Fiber Conference (OFC) (to be published).
  8. Cisco, “Converge IP and DWDM layers in the core network” White Paper, 2007 [Online]. Available: http://www.cisco.com/en/US/prod/collateral/routers/ps5763/prod_white_paper0900aecd80395e03.pdf .
  9. J. E. Gabeiras, V. López, J. Aracil, J. P. Fernández Palacios, C. García Argos, Ó. González de Dios, F. J. Jiménez Chico, and J. A. Hernández, “Is multi-layer networking feasible?” Opt. Switching Networking, vol.  6, no. 2, pp. 129–140, Apr. 2009.
    [CrossRef]

2012 (1)

O. Gerstel, M. Jinno, A. Lord, and B. Yoo, “Elastic optical networking: a new dawn for the optical layer?” IEEE Commun. Mag., vol.  50, no. 2, pp. S12–S20, Feb. 2012.
[CrossRef]

2010 (1)

S. Gringeri, B. Basch, V. Shukla, R. Egorov, and T. J. Xia, “Flexible architectures for optical transport nodes and networks,” IEEE Commun. Mag., vol.  48, no. 7, pp. 40–50, July 2010.
[CrossRef]

2009 (1)

J. E. Gabeiras, V. López, J. Aracil, J. P. Fernández Palacios, C. García Argos, Ó. González de Dios, F. J. Jiménez Chico, and J. A. Hernández, “Is multi-layer networking feasible?” Opt. Switching Networking, vol.  6, no. 2, pp. 129–140, Apr. 2009.
[CrossRef]

2008 (1)

R. Huelsermann, M. Gunkel, C. Meusburger, and D. A. Schupke, “Cost modeling and evaluation of capital expenditures in optical multilayer networks,” J. Opt. Commun. Netw., vol.  7, no. 9, pp. 814–883, Sept. 2008.
[CrossRef]

Aracil, J.

J. E. Gabeiras, V. López, J. Aracil, J. P. Fernández Palacios, C. García Argos, Ó. González de Dios, F. J. Jiménez Chico, and J. A. Hernández, “Is multi-layer networking feasible?” Opt. Switching Networking, vol.  6, no. 2, pp. 129–140, Apr. 2009.
[CrossRef]

Basch, B.

S. Gringeri, B. Basch, V. Shukla, R. Egorov, and T. J. Xia, “Flexible architectures for optical transport nodes and networks,” IEEE Commun. Mag., vol.  48, no. 7, pp. 40–50, July 2010.
[CrossRef]

Duque, R.

R. Duque, V. López, A. González, Ó. González de Dios, and J. P. Fernández-Palacios, “Cost evaluation of the integration of IP/MPLS and WDM elements,” in Proc. Optical Fiber Conference (OFC) (to be published).

Egorov, R.

S. Gringeri, B. Basch, V. Shukla, R. Egorov, and T. J. Xia, “Flexible architectures for optical transport nodes and networks,” IEEE Commun. Mag., vol.  48, no. 7, pp. 40–50, July 2010.
[CrossRef]

Fernández Palacios, J. P.

J. E. Gabeiras, V. López, J. Aracil, J. P. Fernández Palacios, C. García Argos, Ó. González de Dios, F. J. Jiménez Chico, and J. A. Hernández, “Is multi-layer networking feasible?” Opt. Switching Networking, vol.  6, no. 2, pp. 129–140, Apr. 2009.
[CrossRef]

Fernández-Palacios, J. P.

R. Duque, V. López, A. González, Ó. González de Dios, and J. P. Fernández-Palacios, “Cost evaluation of the integration of IP/MPLS and WDM elements,” in Proc. Optical Fiber Conference (OFC) (to be published).

Gabeiras, J. E.

J. E. Gabeiras, V. López, J. Aracil, J. P. Fernández Palacios, C. García Argos, Ó. González de Dios, F. J. Jiménez Chico, and J. A. Hernández, “Is multi-layer networking feasible?” Opt. Switching Networking, vol.  6, no. 2, pp. 129–140, Apr. 2009.
[CrossRef]

García Argos, C.

J. E. Gabeiras, V. López, J. Aracil, J. P. Fernández Palacios, C. García Argos, Ó. González de Dios, F. J. Jiménez Chico, and J. A. Hernández, “Is multi-layer networking feasible?” Opt. Switching Networking, vol.  6, no. 2, pp. 129–140, Apr. 2009.
[CrossRef]

Gerstel, O.

O. Gerstel, M. Jinno, A. Lord, and B. Yoo, “Elastic optical networking: a new dawn for the optical layer?” IEEE Commun. Mag., vol.  50, no. 2, pp. S12–S20, Feb. 2012.
[CrossRef]

González, A.

R. Duque, V. López, A. González, Ó. González de Dios, and J. P. Fernández-Palacios, “Cost evaluation of the integration of IP/MPLS and WDM elements,” in Proc. Optical Fiber Conference (OFC) (to be published).

González de Dios, Ó.

J. E. Gabeiras, V. López, J. Aracil, J. P. Fernández Palacios, C. García Argos, Ó. González de Dios, F. J. Jiménez Chico, and J. A. Hernández, “Is multi-layer networking feasible?” Opt. Switching Networking, vol.  6, no. 2, pp. 129–140, Apr. 2009.
[CrossRef]

R. Duque, V. López, A. González, Ó. González de Dios, and J. P. Fernández-Palacios, “Cost evaluation of the integration of IP/MPLS and WDM elements,” in Proc. Optical Fiber Conference (OFC) (to be published).

Gringeri, S.

S. Gringeri, B. Basch, V. Shukla, R. Egorov, and T. J. Xia, “Flexible architectures for optical transport nodes and networks,” IEEE Commun. Mag., vol.  48, no. 7, pp. 40–50, July 2010.
[CrossRef]

Gunkel, M.

R. Huelsermann, M. Gunkel, C. Meusburger, and D. A. Schupke, “Cost modeling and evaluation of capital expenditures in optical multilayer networks,” J. Opt. Commun. Netw., vol.  7, no. 9, pp. 814–883, Sept. 2008.
[CrossRef]

Hernández, J. A.

J. E. Gabeiras, V. López, J. Aracil, J. P. Fernández Palacios, C. García Argos, Ó. González de Dios, F. J. Jiménez Chico, and J. A. Hernández, “Is multi-layer networking feasible?” Opt. Switching Networking, vol.  6, no. 2, pp. 129–140, Apr. 2009.
[CrossRef]

Huelsermann, R.

R. Huelsermann, M. Gunkel, C. Meusburger, and D. A. Schupke, “Cost modeling and evaluation of capital expenditures in optical multilayer networks,” J. Opt. Commun. Netw., vol.  7, no. 9, pp. 814–883, Sept. 2008.
[CrossRef]

Jiménez Chico, F. J.

J. E. Gabeiras, V. López, J. Aracil, J. P. Fernández Palacios, C. García Argos, Ó. González de Dios, F. J. Jiménez Chico, and J. A. Hernández, “Is multi-layer networking feasible?” Opt. Switching Networking, vol.  6, no. 2, pp. 129–140, Apr. 2009.
[CrossRef]

Jinno, M.

O. Gerstel, M. Jinno, A. Lord, and B. Yoo, “Elastic optical networking: a new dawn for the optical layer?” IEEE Commun. Mag., vol.  50, no. 2, pp. S12–S20, Feb. 2012.
[CrossRef]

López, V.

J. E. Gabeiras, V. López, J. Aracil, J. P. Fernández Palacios, C. García Argos, Ó. González de Dios, F. J. Jiménez Chico, and J. A. Hernández, “Is multi-layer networking feasible?” Opt. Switching Networking, vol.  6, no. 2, pp. 129–140, Apr. 2009.
[CrossRef]

R. Duque, V. López, A. González, Ó. González de Dios, and J. P. Fernández-Palacios, “Cost evaluation of the integration of IP/MPLS and WDM elements,” in Proc. Optical Fiber Conference (OFC) (to be published).

Lord, A.

O. Gerstel, M. Jinno, A. Lord, and B. Yoo, “Elastic optical networking: a new dawn for the optical layer?” IEEE Commun. Mag., vol.  50, no. 2, pp. S12–S20, Feb. 2012.
[CrossRef]

Meusburger, C.

R. Huelsermann, M. Gunkel, C. Meusburger, and D. A. Schupke, “Cost modeling and evaluation of capital expenditures in optical multilayer networks,” J. Opt. Commun. Netw., vol.  7, no. 9, pp. 814–883, Sept. 2008.
[CrossRef]

Schupke, D. A.

R. Huelsermann, M. Gunkel, C. Meusburger, and D. A. Schupke, “Cost modeling and evaluation of capital expenditures in optical multilayer networks,” J. Opt. Commun. Netw., vol.  7, no. 9, pp. 814–883, Sept. 2008.
[CrossRef]

Shukla, V.

S. Gringeri, B. Basch, V. Shukla, R. Egorov, and T. J. Xia, “Flexible architectures for optical transport nodes and networks,” IEEE Commun. Mag., vol.  48, no. 7, pp. 40–50, July 2010.
[CrossRef]

Xia, T. J.

S. Gringeri, B. Basch, V. Shukla, R. Egorov, and T. J. Xia, “Flexible architectures for optical transport nodes and networks,” IEEE Commun. Mag., vol.  48, no. 7, pp. 40–50, July 2010.
[CrossRef]

Yoo, B.

O. Gerstel, M. Jinno, A. Lord, and B. Yoo, “Elastic optical networking: a new dawn for the optical layer?” IEEE Commun. Mag., vol.  50, no. 2, pp. S12–S20, Feb. 2012.
[CrossRef]

IEEE Commun. Mag. (2)

S. Gringeri, B. Basch, V. Shukla, R. Egorov, and T. J. Xia, “Flexible architectures for optical transport nodes and networks,” IEEE Commun. Mag., vol.  48, no. 7, pp. 40–50, July 2010.
[CrossRef]

O. Gerstel, M. Jinno, A. Lord, and B. Yoo, “Elastic optical networking: a new dawn for the optical layer?” IEEE Commun. Mag., vol.  50, no. 2, pp. S12–S20, Feb. 2012.
[CrossRef]

J. Opt. Commun. Netw. (1)

R. Huelsermann, M. Gunkel, C. Meusburger, and D. A. Schupke, “Cost modeling and evaluation of capital expenditures in optical multilayer networks,” J. Opt. Commun. Netw., vol.  7, no. 9, pp. 814–883, Sept. 2008.
[CrossRef]

Opt. Switching Networking (1)

J. E. Gabeiras, V. López, J. Aracil, J. P. Fernández Palacios, C. García Argos, Ó. González de Dios, F. J. Jiménez Chico, and J. A. Hernández, “Is multi-layer networking feasible?” Opt. Switching Networking, vol.  6, no. 2, pp. 129–140, Apr. 2009.
[CrossRef]

Other (5)

B. T. Olsen, and K. Stordahl, “Models for forecasting cost evolution of components and technologies” [Online]. Available: http://www.telektronikk.com/volumes/pdf/4.2004/Page_138-148_rettet.pdf .

Bob Metcalfe, “Toward terabit Ethernet,” Talk at OFC/NFOEC, February 2008 [Recording]. Available: http://www.youtube.com .

“Spectral grids for WDM applications: DWDM frequency grid,” ITU-T Recommendation G.694.1 (pre-published) Feb. 2012.

R. Duque, V. López, A. González, Ó. González de Dios, and J. P. Fernández-Palacios, “Cost evaluation of the integration of IP/MPLS and WDM elements,” in Proc. Optical Fiber Conference (OFC) (to be published).

Cisco, “Converge IP and DWDM layers in the core network” White Paper, 2007 [Online]. Available: http://www.cisco.com/en/US/prod/collateral/routers/ps5763/prod_white_paper0900aecd80395e03.pdf .

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Figures (12)

Fig. 1.
Fig. 1.

Node building blocks.

Fig. 2.
Fig. 2.

ML model and interconnection scenario.

Fig. 3.
Fig. 3.

Transparent express and add and drop path of a WDM node.

Fig. 4.
Fig. 4.

Electrical layers of the example ML node.

Fig. 5.
Fig. 5.

DWDM layer of the example ML node.

Fig. 6.
Fig. 6.

Nodes architecture for the case study.

Fig. 7.
Fig. 7.

Spanish backbone network.

Fig. 8.
Fig. 8.

Relative cost of the integrated (solid lines) and separate (dashed lines) node solutions. Cost values as of 2012.

Fig. 9.
Fig. 9.

Relative cost of the integrated (solid lines) and separate (dashed lines) node solutions. Cost values as of 2014.

Fig. 10.
Fig. 10.

CAPEX savings of the integrated model. Cost values as of 2012.

Fig. 11.
Fig. 11.

CAPEX savings of the integrated model. Cost values as of 2014.

Fig. 12.
Fig. 12.

Cost per component for each algorithm with 4.795 Tbps in the network ( CR = 1.15 ).

Tables (24)

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TABLE I IP/MPLS Router Basic Nodes

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TABLE II IP/MPLS Router Line Cards (Excluding Transceiver and Including Forwarding Card, Without ODU Switching Capability)

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TABLE III IP/MPLS Router Line Cards (Excluding Transceiver and Including Forwarding Card, With ODU Switching Capability)

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TABLE IV Carrier-Grade Packet Transport MPLS-TP Switch Basic Nodes

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TABLE V MPLS-TP Line Cards Without Transceivers

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TABLE VI OTN Basic Nodes

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TABLE VII OTN Line Cards (Excluding Transceiver)

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TABLE VIII Transceivers–Short Reach, e.g., Gray

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TABLE IX Transceivers Long-Reach, i.e., Colored Interface

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TABLE X WDM Transponder in 50 GHz Grid

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TABLE XI WDM Muxponders

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TABLE XII Regenerators (3R)

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TABLE XIII Optical Inline Amplifiers (OLA), Bidirectional

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TABLE XIV WDM Terminals (Including MUX/DEMUX and Booster/Receiver Amplifier)

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TABLE XV Fixed OADM, Including Internal Amplification Stages

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TABLE XVI 50 GHz Fixed Grid (R)OADM/OXC, Including Internal Amplification Stages

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TABLE XVII Building Blocks for a DWDM Node

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TABLE XVIII WDM Transponder in Flexible Grid

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TABLE XIX WDM Muxponder With Flexible-Grid Technology

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TABLE XX Regenerators (3R) With Flexible-Grid Technology

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TABLE XXI WDM Flexible-Grid Terminals (Including MUX/DEMUX and Booster/Receiver Amplifier)

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TABLE XXII Flexible-Grid (R)OADM/OXC, Including Internal Amplification Stages

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TABLE XXIII Electrical Switches Parts and Prices of ML Node

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TABLE XXIV Components and Prices of DWDM Part of ML Node

Equations (1)

Equations on this page are rendered with MathJax. Learn more.

P = n Ch * 75.26 + n Ch / 9 * 22 + n Ch / 3 * 113.93 where n Ch = C / K and 2 n Ch 72