Ethernet is becoming the preferred network transport for innovative service providers and Extreme Networks, Inc. (Nasdaq: EXTR) reinforced this by announcing the availability of an economic analysis of Carrier Ethernet completed by OMNI Consulting Group. This study, “Service Velocity by Design, Engineering Carrier Networks with Ethernet at the Innovation Core,” details an economic model for carriers that can help to determine if they are meeting their financial goals when rolling out next-generation services.
In this study, Carrier Ethernet beat out all of the other technology options, such as Layer 3 MPLS, for offering new revenue generating services. A copy of this report can be obtained by e-mailing multidimensionalethernet@extremenetworks.com.
Because it is difficult to measure the success or failure of next generation technologies and services by looking at the bottom line alone, the study modeled technologies like Extreme Networks’ Multidimensional Ethernet according to a broader framework deemed Service Velocity. Service Velocity consists of three axes of measurement – management of QoS, or the options a technology provides a carrier in order to manage the end users’ quality of service; marginal revenue productivity, which measures the amount of revenue generated by services with all of the costs of providing that service factored in; and lowering of OpEx, or the amount of labor, time and expenditure it takes to generate a new service or technology.
“Our model shows that service providers’ costs to acquire, provision and manage IPTV services using Carrier Ethernet equipment from Extreme Networks are on average 20% improved over using alternative MPLS-type approaches,” said Frank Bernhard, managing principal of the Supply Chain and Telecommunications practice at OMNI Consulting Group and author of the report.
“Because subscribers can be guaranteed a committed level of Quality of Service, at a service-specific price, that price reflects a premium paid to the carrier for its ability to deliver incremental value. The technological innovation with Multidimensional Ethernet creates a performance opportunity for carriers to recognize efficiency and support incremental market penetration at a profit-sustaining price. ”
About Multidimensional Ethernet
Extreme Networks Multidimensional Ethernet is comprised of three key dimensions:
• Network scaling using Ethernet Virtual Private Networks (VPN) - To scale the network for carriers, Extreme Networks implements MAC-in-MAC technology, a breakthrough capability utilizing standards-based Ethernet to vastly increase the number of Ethernet VPNs per network.
• An Ethernet Cross Connect for simple access to various content networks - This allows service providers to connect subscribers to a growing number of content networks using a Layer 2 approach that is both simple and cost-effective to deploy.
• Guaranteed services with three-tier hierarchical QoS - Extreme Networks' greatly enhanced QoS capabilities can support up to tens of thousands of subscribers per line card with eight QoS service levels for each subscriber. This allows service providers to offer guarantees on the delivery of latency-sensitive services such as IPTV and VoIP.
OMNI Consulting Group
Founded in 1989, OMNI Consulting Group is the premiere source for empirical knowledge behind today's fast moving technology marketplace. With an impressive global network of economists and research practitioners, the firm serves many of the world's largest technology organizations and offers an unbiased approach of quantitative standards to address client-focused initiatives. OMNI Consulting Group fosters the understanding of market dynamics through an application of econometric solutions across a wide array of advisory and management research functions. Practice units within the firm concentrate on merger and acquisition support, technology valuation, and intellectual asset management.
Discover the insight of technology economics by visiting us on the Internet: http://www.omniconsultinggroup.com.
Extreme Networks, Inc.
Extreme Networks designs, builds, and installs Ethernet infrastructure solutions that solve the toughest business communications challenges. Our commitment to open networking sets us apart from the alternatives by delivering meaningful insight and unprecedented control to applications and services. We believe openness is the best foundation for growth, freedom, flexibility, and choice. We focus on enterprises and service providers who demand high performance, converged networks that support voice, video and data, over a wired and wireless infrastructure.
Except for the historical information contained herein, the matters set forth in this press release, including without limitation statements as to performance of the products and financial benefits related to the products are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements speak only as of the date. Because such statements deal with future events, they are subject to risks and uncertainties, including network design and actual results of use of the product in different environments. We undertake no obligation to update the forward-looking information in this release. Other important factors which could cause actual results to differ materially are contained in the Company's 10-Qs and 10-Ks which are on file with the Securities and Exchange Commission (http://www.sec.gov).
