ECI Introduces Metro Ethernet Switch Family and 1Net Framework for Integrated Broadband, Optical, and Ethernet Services

| Mar 17, 2008 | Carrier Infrastructure, Optical Infrastructure
| Competitive Intelligence Report

| Analysts: Glen Hunt, Jason Marcheck

Current Perspective: Positive
Vendor Importance: High
Market Impact: Moderate/High

Event Summary

March 17, 2008 – ECI Telecom announced its 9000 Family of carrier Ethernet products for metro transport and service delivery plus a new architectural framework for IP, Ethernet and MPLS services – ECI 1Net. 1Net leverages a common framework for WDM/ROADM, MSPP and now Carrier Ethernet. The 9000 Family includes the high density 9700 Series Ethernet switch routers for the metro core and the 9200 Series for the metro edge where cost optimization, footprint and service aggregation are critical.

Analytical Summary

• Current Perspective: Positive on ECI Telecom’s announced launch of its new line of carrier Ethernet switches, the 9000 Family. The 9000 Family offers a solution built with a transport-oriented approach to address the needs of metro core and access/demark aggregation. The announcement also marks the debut of ECI’s new 1Net framework, which offers full life cycle services as well as products and applications to add value and tie together the company’s carrier Ethernet, MSPP/MSTP, Access and Optical product families under its common LightSoft management system. The announcement leverages the advances ECI has made in adding intelligence to its broadband and access products to offer a one-stop shop for service provider’s metro needs.

• Vendor Importance: High to ECI, because the launch of the new purpose built Ethernet switch portfolio and expansion of its professional services offer represent the culmination of the company’s overall product direction and focus since the formation of the Network Products Division in February 2007. ECI’s investments have been directed toward adding unique differentiable value to its optical and broadband access portfolio by leveraging the IP/MPLS and network management technologies, derived from its acquisition of Laurel Networks. The launch of 1Net and the 9000 Family significantly improves its capabilities to deliver full lifecycle support for integrated solutions across broadband, optical and metro core/access networks.

• Market Impact: Moderate to high on the carrier Ethernet market, because the new 9000 Family of switches provides a feature rich set of Ethernet capabilities to address the metro market which leverages the company’s momentum in the broadband and optical markets. ECI has been somewhat absent from the rapidly growing carrier Ethernet market and the 9000 Family of switches plus the services, solutions and management focus provided by 1Net, presents a comprehensive proposition for service providers seeking a solution that leverages a transport-oriented model to building next generation infrastructures by integrating the metro, broadband and optical networks under a unified umbrella.

Recommended Competitor Actions

• Alcatel-Lucent should note its overall service provider access through multi-service edge solutions based on its fully managed IP/MPLS portfolio. Alcatel-Lucent should highlight the capabilities of its common SR OS which runs on all platforms and show how its portfolio of 7XXX routers and management platforms (5620 SAM, 5750 SCC, and 5650 CPAM) provide a cost effective end-to-end solution to support service providers with their network transitions. Alcatel-Lucent’s should also note its IP router customers total more than 180, spanning more than 70 countries.

• Cisco should highlight its leadership and its Aggregation Services Router (ASR) 1000 Series, which is designed to address the emerging Exabyte era in network traffic. Increasing, access routers need to deliver higher per subscriber performance and offer embedded services to reduce cost and complexity. The ASR 1000 Series delivers the performance needed plus embedded services such as firewall, IPsec, DPI, integrated service gateway and SBC functions in the base platform.

• Ericsson needs to highlight its consistent pursuit of its Full Service Broadband (FSB) strategy for transforming broadband access to support services such as mobile broadband, VoIP and IPTV. Ericsson should stress that the experiences gained in these areas are relevant for providing optimal solutions at the network edge to meet the requirements for voice and video applications. Ericsson should note that its Global Services has 24,000 employees in 140 countries, and that it now manages networks that support 135 million subscribers.

• Juniper should provide proof points for the MX-series of Ethernet service routers in each of its targeted service areas such as: wireline, wireless, MSO, CSP and enterprise. It should highlight the MX-series plus capabilities such as automated MPLS Plug N Play which offers a strong solution for carrier Ethernet and data center applications. Juniper should also stress its global services capabilities which are provided by its direct service organization plus by its extensive channel partners.

• NSN should highlight three specific areas in addition to its services offering where it provides carrier Ethernet solutions. First, it should show how its hiD6600 series Ethernet switches provide the scale and QoS required to achieve simplified access and aggregation network. Second, it should show how through its Atrica acquisition and its strategic partnerships enable an end-to-end Ethernet solution ranging from the demarcation point to the IP core. Third, it should highlight its leadership in PBB-TE to build effective mobile backhaul solutions and metro networks.

• Nortel, Ciena, Extreme, Huawei, Soapstone and others should highlight their leadership in driving down the cost of carrier Ethernet deployments through new simplified control plane management mechanisms and protocols centered around PBB-TE. Vendors championing this technology should highlight the merits of PBB-TE with those of IP/MPLS and layer 2 MPLS models. Ciena should highlight the value proposition of its FlexSelect product architecture to deliver integrated optical Ethernet solutions. Huawei should stress its optical, broadband and carrier Ethernet solutions.

Recommended End User Actions

• Service providers expanding their IP-based service offerings should evaluate ECI’s 1Net model and the broad range of technologies that it encompasses to support advanced services such as business VPNs, IP-video, triple play and other advanced services over their DSL, WDM and carrier Ethernet infrastructures. Specifically, network operators should pay attention to ECI’s LightSoft management system and its ability to control all products in the suite to deliver basic and advanced transport services with a simplified point-and-click interface.

• Service providers who are seeking a strategic partner to help them build their next generation access, optical and/or Ethernet infrastructures should evaluate the depth of the services offered under ECI’s 1Net framework. ECI has a long history of providing a unique combination of innovative and flexible solutions for its customers. With the announcement of 1Net, ECI has formalized is promoting services such as planning, program management, consulting, building, turnkey and management under a common umbrella.

• Service providers looking to deploy or expand their Ethernet access and aggregation service areas should consider the solutions offered by ECI’s 9000 family of Ethernet switches. The new Ethernet portfolio includes two purpose built models, the 9200 and 9700, that address the full range of requirements beginning at the Ethernet demarcation point though the metro core. Providers should consider the rich QoS capabilities plus the common management which support Ethernet, broadband and optical portfolios with a common interface and provisioning model.

• Service providers evaluating carrier Ethernet solutions need to compare/contrast ECI’s 9000 Family with solutions from leading router-based competitors such as Alcatel-Lucent, Cisco, Ericsson, Juniper and from Ethernet switch-based competitors such as Extreme, Foundry, Huawei, NSN and others. Providers should evaluate alternative solutions based on their specific service delivery needs, network scale and overall network architecture. For example, Layer 2-centric networks may find that a switch based approach is more beneficial while other service providers may find a router-based solution better fits there overall requirements.

• Service providers should press ECI and other vendors that are championing a common MPLS-control plane for access and aggregation services for details on how cost effectively their solutions can scale to the levels required to meet projected service demands. MPLS is a proven technology for IP edge and core networks, but can appear to be overly complicated for Ethernet access and aggregation applications and for the optical transport layers of the network.

• Service provides should evaluate the progress of the PBB-TE ecosystems as vendors bring their solutions to market which include not only switches, but management and control solutions to support advanced services and network scale. Specifically solutions from Nortel, NSN, Extreme and Soapstone networks should be evaluated from a functional perspective and their ability to seamlessly mesh with existing MPLS-based edge and core networks. Service providers should determine which model will best meet their long term scale and service delivery requirements.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

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