Chapter 1. The Dynamics of Service Creation and Deployment

This chapter details the industry dynamics, competitive outlook, business motivation, and drivers for service creation and deployment toward service providerbased next-generation networks (NGN) that use IP/MPLS as a service architecture foundation. Additionally, enterprise organizations can use IP/MPLS to segment their networks into LAN, campus, and WAN functions as a basis for service virtualization. It also outlines the needs for such services by large enterprise customers for either do-it-yourself (DIY) or outsourcing. We use the term service provider (SP) to refer to a telecommunications company, such as a carrier that offers services like voice, data, video, and possibly mobile.

This chapter further identifies how MPLS as a technology can be used to facilitate the service creation process for both SPs and enterprise organizations. The chapter discusses motivations for Layer 2 VPN and Layer 3 VPN deployments and compares existing technologies, such as Frame Relay, ATM, and IP. The chapter concludes with service examples, such as transparent LAN service (TLS) and multicast VPN service using MPLS as a service creation foundation.

This chapter serves as the basis for the book's subsequent chapters that discuss service types and explore the feasibility of MPLS technology for deployment in service provider NGN-based networks, in addition to enterprises that develop virtualized architectures. We also examine the service components of MPLS, such as IPv6, quality of service (QoS), traffic engineering, Layer 2 and Layer 3 constructs that are used to build services such as remote access, and Layer 2 and Layer 3 virtual private networks (VPN). We begin with a view of industry dynamics and challenges to NGNs, IP/MPLS convergence, and enterprise virtualization.