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Most incumbent carriers also offer Business Ethernet services now, using a variety of different networking technologies In some cases, Business Ethernet services have been offered more or less piecemeal, layered on existing SDH/SONET, ATM, or fibre networks, whereas in others, dedicated Layer 2 or MPLS-based Ethernet platforms have been deployed The overall trend appears to be for carriers to migrate toward single MPLS-based Ethernet platforms both to offer Business Ethernet services and to backhaul consumer broadband traffic (see Triple Play Aggregation ) The first generation of business Ethernet services were generally based on offering point-to-point connections (or point-to-multipoint using VLANs at the central site) and on selling bandwidth by the megabit on an uncontended basis (though oversubscription was sometimes used to increase network efficiency) With increasing competition, and increasing customer sophistication, many providers now offer a much wider range of services and QoS options VPLS provides a means for providers to offer multipoint services, whereas the use of PE devices that offer per-flow queuing and traffic engineering enable them to offer enhanced SLAs (for example, services with the sort of bounded latency and jitter previously considered to be the domain of ATM rather than of Ethernet)

8 Flag 7 BSN 1 B I B 7 FSN 1 F I B 6 LI 2 Spare 8 or 16 Status 16 CRC (Length in bits)

In this section we will address some of the ongoing work addressing limitations in the Ethernet over MPLS architecture Necessarily this is a snapshot in time, and hopefully the technologies presented here will find their way into network deployments over the next several months from the time of writing

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As discussed, there are various applications for MS-PWs However, the MS-PW architecture presents new challenges when compared with the single-segment pseudowire (SS-PW) architecture In the SS-PW case, the PE devices are able to rely on the MPLS layer to provide connectivity from one PE to the other PE, and thus the pseudowire layer need not concern itself with topology or with service restoration In the MS-PW case, however, the MPLS layer now only provides connectivity from T-PE to S-PE and from one S-PE to another This creates two challenges:

Figure 5-12 is an illustration of a ramped commission schedule In this example, we see that the commission rate increases from 6 to 8 percent A predetermined level of accomplishment is achieved in this case $15M

The service provider must define a-priori the set of S-PEs through which a pseudowire will flow from T-PE to T-PE and must configure each one to switch the pseudowire Failure of an S-PE now implies failure of the pseudowire

Message Signal Unit (MSU)

To address these challenges, work is ongoing in the IETF on dynamic placement of MS-PWs In this model, globally unique FEC 129 Type 2 AIIs are constructed, consisting of a 32-bit global ID, a 32-bit prefix (typically, the IP address of the T-PE where the attachment circuit is located) and a 32-bit Attachment Circuit ID When setting up a dynamic MS-PW, a source T-PE performs a longest prefix match (similar to the longest

Component Progressive Ramp Commission Schedule Sales Performance To $15M Over $15M Commission Rate 6% 8%

prefix match used in IP forwarding) on its local Layer 2 AII PW routing table Each entry in the table consists of a 96-bit Type 2 AII with a mask; for example, an entry with a /64 mask (ie, 64 ones and 32 zeroes) would match all Attachment Circuit IDs for a given global ID and prefix, and a matching next hop (ie, the IP address of the next SPE toward the destination T-PE, or of the destination T-PE itself if the pseudowire only has one segment) The source T-PE then sets up a pseudowire segment to that next hop using targeted LDP The next-hop S-PE repeats this process until the final S-PE sets up a pseudowire segment to the target T-PE Because FEC 129 implements single-sided signalling, only one T-PE needs to initiate the pseudowire setup To prevent both T-PEs starting pseudowire setup, the T-PEs compare AIIs, and the one with the higher SAII initiates setup

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Observations Most incentive formulas feature a progressive rampThis approach rewards additional sales performance

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