Quantifying the value propositions of MPLS evolution; why and when to migrate to a converged MPLS core?

The emergence and growth of the Internet places IP central to the next generation network (NGN). MPLS has been the choice of technology to meet requirements in NGN. Now service providers are looking for clear economic drivers for moving to MPLS and faced with the challenge of selecting the most cost-effective solution from a number of available MPLS evolution scenarios. This work presents a network and business modelling approach and a case study to quantify the value propositions of three evolution scenarios to NGN. For this, we develop detailed and flexible network models, design and configurations to replicate various architectures, scaling patterns and possible migration steps in a variety of large networks. This is integrated with business modelling to analyze and compare cost-effectiveness of the evolution scenarios by quantifying their capital expenditures (CapEx), operational expenses (OpEx), and new sources of revenue (e.g., IP VPN) made possible by MPLS. The case study shows the converged MPLS core solution has significant financial advantages over the present operation (without MPLS) and the overlay MPLS solution. Results of the sensitivity analysis given to CapEx and transport in the core show in Zone of Advantage charts when it makes economic sense to move to a converged MPLS core based on current total traffic, its mix of ATM and IP, and IP growth rate. Of particular importance to this analysis is the detailed modeling and quantification of the cost/benefits of operating support systems (OSS), which proves the distinct advantage (operational savings) of an advanced, integrated OSS infrastructure to the converged MPLS solution.