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26 Deploying <strong>and</strong> Managing IP <strong>over</strong> WDM Networks<br />

other competitors. Having an adequate management infrastructure is <strong>of</strong> crucial<br />

importance for network <strong>and</strong> service providers in order to keep a predominant<br />

position in such a competitive environment.<br />

This management infrastructure must c<strong>over</strong> all <strong>of</strong> the functional areas<br />

(fault, configuration, performance, security, <strong>and</strong> accounting) <strong>and</strong> address all levels<br />

<strong>of</strong> management (network-element, network, service, <strong>and</strong> business levels).<br />

Besides, <strong>networks</strong> are becoming more complicated, shifting from public<br />

switched telephone <strong>networks</strong> (PSTNs) to hybrid <strong>networks</strong> that must interwork<br />

properly. Thus, the management infrastructure must also c<strong>over</strong> all <strong>of</strong> the technologies<br />

in use, providing a common view to network <strong>and</strong> service providers.<br />

Some <strong>of</strong> the most important areas in which management systems can be<br />

useful for network <strong>and</strong> service providers to reach <strong>and</strong> maintain an advantageous<br />

position in the telecommunication market are:<br />

• Revenue increase. One <strong>of</strong> the most important problems network <strong>and</strong><br />

service providers must face to maximize pr<strong>of</strong>it is revenue increase. Management<br />

systems can help to achieve this goal in several ways:<br />

1. Maximizing the usage <strong>of</strong> existing products. To do so, network <strong>and</strong><br />

service providers can increase the average usage <strong>of</strong> the service <strong>of</strong><br />

existing customers <strong>and</strong> acquire new customers. In order to make<br />

customers perceive a differentiation in the services <strong>of</strong>fered, network<br />

operators must provide higher quality. This will result in a bigger<br />

market share. Managing service quality is therefore an essential<br />

activity for all network <strong>and</strong> service providers.<br />

2. Charging higher prices. Service providers can charge higher rates for<br />

services that require a high degree <strong>of</strong> quality. For these kinds <strong>of</strong><br />

services, higher prices are acceptable but they must comply with<br />

SLAs. Therefore, monitoring <strong>of</strong> SLAs is required. As a consequence,<br />

service providers need tools to manage <strong>and</strong> measure network<br />

quality <strong>and</strong> performance so they can provide some evidence<br />

<strong>of</strong> the quality <strong>of</strong> service <strong>of</strong>fered.<br />

3. Introducing new services. Basic services (e.g., voice traffic <strong>and</strong> b<strong>and</strong>width)<br />

tend to become undifferentiated st<strong>and</strong>ard products<br />

4.<br />

(commodities). Service providers need to introduce new services<br />

that yield greater added value <strong>and</strong> pr<strong>of</strong>it margins, as customers are<br />

willing to pay more for them. Multiservice <strong>networks</strong> that need<br />

an adequate management support these complex services. Furthermore,<br />

service development <strong>and</strong> life cycles are continuously<br />

shortening.<br />

Integration. Network management must integrate in a unique system<br />

the operation <strong>of</strong> <strong>networks</strong> provided by different manufacturers

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