Gigabit G t Wireleess Leaased-LLine Reeplaceement Utilizing gigabit g wireless w linnks to proovide fibeer-like performancce at significant savings compaared to leeased linees. W WHITE PAPER Introduction W When considerring high-bandw width connectioons between locations, convventional thinking used to bee that the only way to get sservice was to pick up the phhone, call the service s provideer and order upp a circuit. As long as the start-up costs annd monthly rrecurring chargges were withinn the IT budget, and the IT manager m and bbusiness adminnistrators weree content with tthe level of sservice provideed, writing a monthly m check to the service provider wasnn’t a problem. If troubles weere encountereed with the sservice, a phonne call to the prrovider was all that was necesssary to resolvee the problem. $5,000 $5,000 $4,500 $4,000 $3,700 $3,500 $3,000 $$2,500 $2,500 $2,000 $1,,500 $1,500 $1,000 $500 $800 0 $300 $0 T1 10Mbps DS3 1000Mbps OC‐3 GigE B Businesses relyying on leased lines find a wide range of peerformance opptions tailored tto suit their needs, from T1 ((1.5 Mbps), 110Mb Ethernet, DS3 (45 Mbpps), Fast Etherrnet (100 Mbpss) OC-3 (155 M Mbps) and eveen gigabit (10000 Mbps) data rates. The cchart above dettails the typical monthly leasse costs for a variety v of point--to-point conneections in the U United States as polled by a number of seervice provider websites. Estaablishing leaseed line service often entails sstart-up fees, in addition to thhe monthly O OPEX charges, that can range from a few hundred dollars to hundreds oof thousands off dollars when nnew fiber circuits must be cconstructed. If the installationn requires speecial considerattions, additionaal cost and tim me to provisionn the circuits aare usually aadded to the abbove pricing. Inn most cases, there t is a multi--year commitm ment allowing thhe service provvider to recoupp their initial innvestment, furtther adding to the t expendituree. Inn today’s economic environment of shrinkking budgets, and/or in ord er to maintainn competitive aadvantages, ggovernment eentities and buusinesses are increasingly loooking to IT departments d too improve prodductivity and ccontrol costs. TThis paper eexamines the benefits b of replaacing costly leaased line circuitts with affordabble gigabit Etheernet wireless links. ©2011 BridggeWave Comm munications, Innc. Page 2 of 1 0 W WHITE PAPER R Replacing Wired Services with w High Capaacity Wirelesss Links M Microwave radio systems havve been used for f decades to provide highlyy reliable, troubble-free transmission of voicee, data, and vvideo, for service providers who w depend onn them to geneerate revenuess, or for busineesses that neeed backhaul foor essential ccompany network services between b dispaarate facilities. Because of ttheir limited bandwidth, trannsmission rates of these m microwave soluutions top out at a a few hundreed megabits peer second. Wit h the opening of millimeter w wave spectrum in the 60 880 GHz bands, full gigabit (GigE) wireless trransmission haas become an aaffordable alterrnative to high capacity leased circuits. $200,0 000 $180,0 000 $160,0 000 Lifecycle Cost $140,0 000 $120,0 000 $100,0 000 $80,0 000 $60,0 000 $40,0 000 GigE Wireless $20,0 000 $0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 4 15 16 17 18 199 20 21 22 23 2 4 25 26 27 28 229 30 31 32 33 334 35 36 Number of Months FFor businessess, there are maany advantagees of utilizing high-capacity h ggigabit wirelesss links to replaace fiber or aging copper bbased circuits, both in terms of o cost and of network n performance. On thee cost side, GiggE wireless links provide a raapid returnoon-investment, relative to the costs of leasinng high-speed circuits. By com mparison, a GigE wireless linnk can provide equivalent fiiber-like speedds for a one-tim me expenditure comparable too the annual coost of leasing fibber-based servvice. In many ccases when nnew fiber runs must be constructed, the inittial installation costs for fiber services actuaally exceed thee cost of installling a GigE w wireless system m. As the life cyycle costs are charted abovee, it is evident t hat the financiaal advantage oof the small inittial CAPEX innvestment in GigE G wireless systems can be b realized in a relatively shhort period of time comparedd to the recurring OPEX ccharges for leassed lines. In many cases, thee breakeven pooint is measure d in months, not years. ©2011 BridggeWave Comm munications, Innc. Page 3 of 1 0 W WHITE PAPER H How GigE Wireeless Links arre Being Utilizzed B BridgeWave’s gigabit g wireless solutions aree used in vertical markets ssuch as healthccare, educatioon, local government and pprivate networkk (enterprise) applications a whhere users havee benefitted froom their fiber-like performancce in terms of throughput aand latency, annd their minimal investment coompared to leaasing or implem menting fiber. State Governm ment Local/S BridgeW Wave’s full-ratee GigE links prrovide seamlesss primary inter-building connnections, highlyy secure backhaaul for intelligennce and CCTV V surveillance ssystems or cann be run as divverse paths in parallel with fibber cabling to provide p redundant fiber overlaay. Optional 2556-bit AES enccryption eliminates the need foor external enccryption devicees. When unexxpected urgennt needs arise,, links can be used to quicklyy create temporrary or disasterr-recovery connnections. Healthccare BridgeW Wave gigabit wireless w solutioons offer full-G GigE LAN performance for healthcare neetworks. Transmission of senssitive medical data such ass MRIs and xx-rays is both fast and secuure with BridgeW Wave GigE linkks. BridgeWavve GigE solutioons provide a fast-to-deploy,, flexible alternnative to costly innter-building fiber installationns. These systtems can provvide a cost-efffective 100% aalternate route, reedundant path for mission-critical fiber connnections. Educattion Bandw width-consumingg mobile devicces are becom ming a ubiquitous part of ttoday’s universsity life, straininng campus nettworks with thheir insatiable need for capaacity. The wideespread use oof Wi-Fi accesss hubs, as well as security cameras across campuses, com mpels the needd for capacity tthat can be quicckly and easilyy deployed. BridgeWave’s G GigE wireless solutions enabble future-prooof, highspeed ‘on-the-go’ coonnectivity for students, facuulty and adminnistrators, withh all the perfoormance benefits of fiber, whilee yielding a significant cost saavings compareed to metro fiber cabling. Enterp prise BridgeW Wave’s gigabit wireless solutions are ideal ffor corporate/campus LAN exxtensions due tto their ability to t seamlessly integrate with existing e LAN baackbone. Userss off the main bbuilding experience the sam me LAN connecctivity as their counterparts c coonnected to the main network. With future-pproof network connectivity and a the bandw width to handle the most demaanding businesss applications, GigE wirelesss links offer effficiencies in seerver centraliza tion, data backkup and storage and in additioon to the rappid deployment offered, also provide p alternatte route traffic overlays for buusiness continuuity and disasteer recovery situations. ©2011 BridggeWave Comm munications, Innc. Page 4 of 1 0 W WHITE PAPER TThe Economiccs of Leased Line L Services Inn this section we’ll w consider four f scenarios that t involve intterconnecting bbuildings locateed within a few w miles of each other, and ddetail the savings that can be realized by using GigE wireleess compared to leasing fiberr. C Corporate LAN N Extensions Inn the first scennario, a growinng small businness nneeds room to house its exppanding workfoorce aand finds a suuitable buildingg one mile aw way frrom the main office. o The IT manager m is tasked too connect thee two buildings with voice and ddata being the primary applicaations. Since a T1 cconnection doeesn’t provide enough capacityy to hhandle the need, a 10 Mbps Ethernet E servicce is cconsidered froom the servicce provider at a m monthly rate off $800. It also requires an innitial sstart-up connecction fee of $22,500. In order to ssecure the best b rate, a thirty-six moonth ccommitment iss required. This T amounts to $$31,300 for the three year leaase to provide a 10 Mbps connection betweeen the companny headquarterss and the satelllite office. Replacing this leased circuit with a 1000 M Mbps 60 GHz link would not only save 30% % over the leased costs, but b also yield 100x 1 faster speeeds between locations. The 60 GHz, 10000 Mbps link provides a futuure-proof solutioon with enoughh capacity to hhandle the mosst demanding aapplications that t run over thhe network today, with amplee bandwidth forr tomorrow’s neew business appplications. The T table beloow details the cost analysis oof using a 60 GHz GigE wireeless link com mpared to a three t year leasse of a 10 Mbps circuit. M Monthly Leasedd Circuit Fee N Number of Monnths C Connection Chaarge 660 GHz GE60 radios r Innstallation Servvices 660 GHz Licensee (license-free)) Im mplemented Total T TThroughput C Cost per Mbps 60 GHz GE Wireeless $0 N/A $0 $ 177,900 $ 44,000 $0 $ 211,900 1000 M Mbps $ 221.90 ©2011 BridggeWave Comm munications, Innc. Page 5 of 1 0 Leased 10 Mbps $ 800 36 $ 2,500 $0 $0 $0 $ 31,300 10 Mbps $ 3,130.00 W WHITE PAPER E Education Nettworks Inn the second scenario, a 1000 Mbps leased liine is used to extend campus LAN N cconnectivity across three buildings at a locaal uuniversity. Serrvices such as a voice, dataa, Innternet accesss, and classrooom video arre trransported ovver the circuitt. The use of o m mobile devicess, including taablet computerrs hhas dramatically increased utilization on the nnetwork, straining the leasedd line backbone cconnection. Thhe recurring monthly m chargees oof $2,500 for each e connection are based on o a thirty-six monnth contract. Thhere was also a sstart-up cost off $5,000. Wheen one adds up thhe start-up andd recurring cossts for this circcuit, the school will pay $185,,000 for this thhree year comm mitment to leasse two 100 M Mbps circuits too connect their three buildingss on campus. A much more cost-effective solution wouldd be to connecct the campus buildings togeether using gigabit g Etherneet 80 GHz wireeless links. Reeplacing the 1000 Mbps leasedd circuits with these links would w save 66% over the life-cycle cost of lleasing the linees, with the addded benefit of a ten times improvement inn connection speed. The T table below details the cost c analysis off using these 880 GHz GigE w wireless link coompared to a four year leaase of a 100 Mbps M circuit. Inn the above sccenario, a thirdd GigE link could be used too completely eenclose the nnetwork in a rinng topology, adding resiliencyy to the networkk with very littlee CAPEX cost w when considerring the overall cost of the 1100 Mbps fiber implementatiion. When com mparing the coost per megabbit alternativess, it is clearly apparent that significant ssavings can be realized by ussing GigE wireleess solutions. M Monthly Leasedd Circuit Fee N Number of Monnths C Connection Chaarge (Initial Insstallation) 880 GHz GE80 radios r Innstallation Servvices 880 GHz Licensee Im mplemented Total T TThroughput C Cost per Mbps 800 GHz GE Wireeless $0 N/A $0 $ 27,5000 (x2) $4,0000 (x2) $ 755 (x2) $ 633,150 1000 M Mbps $663.15 ©2011 BridggeWave Comm munications, Innc. Page 6 of 1 0 Leased 100Mbps $ 22,500 (x2) 36 $5,000 $0 $0 $0 $ 185,000 1100 Mbps $$1,850.00 W WHITE PAPER H Healthcare Networks Inn the third sceenario, gigabitt leased lines are uused to provide high speed connectivity frrom aan outpatient clinic to a hoospital two miles m aaway. Other facilities f withinn the healthccare ccampus includee a pharmacy and data cennter, aall requiring high-speed h GigE G connectivvity, trransporting patient meedical recorrds, pprescription filliing, medical im mage files (MR RIs, X X-Rays), as weell as providingg Internet/intraanet aaccess and VoIP V services to the doctoors, nnurses and administratorrs tasked with w pproviding healthhcare services to their clients. A As it’s unlikely the hospital will w move in thhe next five yeears, the admi nistrator signss a long term contract with tthe service pprovider to get the best possible per-month price on thesee gigabit leasedd lines. For a ggigabit fiber-baased circuit, the rates are aapproximately $5,000 per moonth, and the service provider has waivedd the start-up cconnection cossts due to thee long term leease. The hosppital will pay $9900,000 over thhe life of the coontract for thes e high-speed cconnections. Consideringg the use of 80 GHz gigabit w wireless links inn lieu of leasingg fiber, the hosspital would save 86% ovver the life-cycle cost of leasi ng the lines wiith an equivaleent gigabit speeed and with improved lattency between the buildings. Gigabit wireless links can also provide cost-effective redundant linkks to existing ffiber-based connections, as well as divverse path in lieeu of a break inn the main fiber. TThe table below w details the coost analysis of using these 800 GHz GigE wiireless link com mpared to a lonng term lease oof a gigabit ccircuit. When comparing c the cost per megaabit alternativees, it is clearly apparent that significant savvings can be rrealized by uusing GigE wireeless solutions. M Monthly Leasedd Circuit Fee N Number of Monnths C Connection Chaarge 880 GHz AR80X X-AES radios Innstallation Servvices 880 GHz Licensee TTotal TThroughput C Cost per Mbps 880 GHz AR Wiireless $0 N/A $0 $ 39,2550 (x3) $ 4,0000 (x3) $ 775 (x3) $ 1229,975 10000 Mbps $ 129.98 ©2011 BridggeWave Comm munications, Innc. Page 7 of 1 0 Leassed GigE $ 55,000 (x3) 60 $0 $0 $0 $0 $ 900,000 10000 Mbps $ 900.00 W WHITE PAPER G Government Networks N Inn the fourth sccenario, a govvernment initiattive too modernize IT infrastructurre is considerred. TThis involves placing p HD-IP video v camerass in sspots in high-ccrime traffic areas a as well as im mproving connnectivity for govvernment facilitties w within the municipality. The police p department iss building a video v monitoring center in the bbasement of thheir facility, annd requires highsspeed, low-lateency backhaul for f HD-IP camera ppan/tilt/zoom operation. o At the same tim me, oother departm ments are coonsidering highbbandwidth connectivity for VoIP, V data, viddeo cconferencing, CAD file trannsmission, CR RM, eetc. Trenching through streeets and diggingg up sidewalks to lay city-oowned fiber prroved to be tooo disruptive too the local bbusinesses, noot to mention put p the project way over buddget. A secondd option was tto review leaseed-fiber from tthe service pprovider, however gigabit speeeds were ruleed out due to their cost. A ccompromise off 100 Mbps fibber to each location was cconsidered. As seen earlier, for a 100 Mbpps fiber-based circuit, the ratees are around $2,500 per m month, and do nnot include sstart-up connecction costs. Whhen consideringg the scope of this project, th e eight lines neeeded to connect HD-IP videeo cameras aand disparate faacilities togetheer on the netwoork would cost $1,200,000 ovver the life of thhe five year conntract. Considering the use of 80 GH Hz gigabit wireeless links in lieeu of 100 Mbpss leased fiber w would save 77% over the life-cycle l cost with w the addedd benefit of tenn times perform mance improvement while still s providing low l latency connectivity for H HD-IP camera manipulation. Additionally, tthese GigE wireless w links can be re-useed in different locations shouuld the cameraas need to be rapidly redeployed d to otther positions. The table bellow details thee cost analysiss of using thesse 80 GHz GigE wireless links comparedd to a five yearr lease of 100 M Mbps circuits. W When comparing the cost pper megabit alteernatives, it is clearly apparennt that significaant savings cann be realized byy using GigE w wireless solutioons. M Monthly Leasedd Circuit Fee N Number of Monnths C Connection Chaarge 880 GHz AR80 radios r Innstallation Servvices 880 GHz Licensee Im mplemented Total T TThroughput C Cost per Mbps 880 GHz AR Wiireless $0 N/A $0 $ 30,5000 (x8) $ 4,0000 (x8) $ 775 (x8) $ 2776,600 10000 Mbps $ 2276.60 ©2011 BridggeWave Comm munications, Innc. Page 8 of 1 0 Leased 1100 Mbps $ 22,500 (x8) 60 $0 $0 $0 $0 $11,200,000 1100 Mbps $112,000.00 W WHITE PAPER S Server Centrallization Utilizin ng Gigabit Wireless Links O Often the greattest savings reealized by deploying gigabit wireless w links aare not in the ddirect savings from eliminatinng monthly leeased-line chaarges, but in thhe indirect savvings resulting from centralizzing IT facilitiess and staff. Raather than tyinng together rremote-site server facilities using lower-speed leased lines, gigabit wireless linkss provide the performance needed to ccentralize servvers, while prooviding remotee users with server accesss performancee equal to thoose of local uusers. This cconsolidation eliminates e duplicated server hardware, softtware licenses , backup systeems and serveer room costs at multiple loocations, whichh can result in significant savings. Also, cenntralizing serve rs greatly simpplifies network aadministration and server m management, improving serviice reliability annd reducing thee costs of deplooying new appplications and sserver capacity. O Other Tangiblee Benefits to Replacing R Leaased Line Servvices with Higgh Capacity W Wireless Links Inn addition to thhe significant savings s realizedd by utilizing high capacity giigabit wireless links, businessses can future--proof their nnetworks, and provide p ample capacity as neew applicationss need to be trransported oveer the link or thhe workforce coontinues to eexpand. Transm mission rates provided p by theese gigabit wireeless links meaan that the backkbone will remain free of botttlenecks as aapplication capacity needs groow. Inn regards to peerformance, thhese millimeter wave GigE wiireless links prrovide full-rate non-blocked ggigabit throughpput speeds w with very low laatency, yieldingg a fiber-equivvalent backbonne link that is pperfect for trannsporting real-time applicationns such as vvideo and VoIP P. With GigE wireless w links, thhere are no protocol converssions to make (e.g. SONET/A ATM-to-IP), no expensive eedge devices too purchase, coonfigure and maintain; GigE wireless w links pprovide the sim mplicity of nativve IP interfacess, matching thhe interfaces used u by server and user systeems. E Even when thee costs of leaseed line servicess are deemed to be acceptabble, often the ttime to provisioon these servicces can be pprohibitive. High-speed wireleess links can be b commissioned in days, all owing the orgaanization to react quickly to cchanges in thhe business ennvironment, whhile new fiber innstallations aree often burdeneed with the red tape associateed with obtaininng relevant ppermits and connstruction delays of many moonths. W While it can be comforting to simply s call som meone else (e.gg. a service proovider) to addreess network isssues or outagees, many IT oorganizations prefer p to havee local control over their ow wn network too ensure that any network issue troublesshooting or rresolution actioons can be undertaken withoout being depeendent on outsside parties. G Gigabit wireless links includee extensive m management faacilities that are a consistent with those found on other Ethernet switcching equipmeent. This allow ws network aadministrators to t easily integrrate the links innto their existinng network maanagement sysstems without tthe complexityy of dealing w with proprietaryy management solutions. Thiss gives IT managers’ complette visibility intoo their network,, with the tools necessary too quickly diagnnose issues witthout waiting foor a service proovider to responnd to a trouble ticket. G Gigabit wireless links providee a direct subsstitution for leased services, w with the perforrmance, reliability and securrity of fiber. TThese links allow IT departm ments to simulttaneously imprrove user servvices while redducing commuunications expeenses. The ddirect savings over recurrinng leased-line costs are coompounded bby the indirectt savings reaalized through IT facility ccentralization and a simplified network n managgement, as weell as providing the peace-of--mind of compllete network viisibility and ccontrol. ©2011 BridggeWave Comm munications, Innc. Page 9 of 1 0 W WHITE PAPER A About BridgeeWave Comm munications B BridgeWave Communicationss is the leadinng supplier of high-capacityy 4G millimeter wave backhhaul and gigabbit wireless cconnectivity soolutions. BridgeWave's carrier-grade, poinnt-to-point wireeless FlexPortt® links providde a future-prooof mobile bbackhaul solution for carriers and mobile opperators lookingg to support 4G G/LTE/WiMAX X adoption. PicooHaul™ links pprovide the ssame carrier-grrade high-capaacity, small-cell backhaul for dense cell depployments. Thee company's 660 GHz and 800 GHz links ooffer up to ten times t the banddwidth of compparably-priced lower-frequenc l cy license-free and licensed-bband wireless links, while pproviding superrior interferencce immunity annd data securitty. Founded in 1999, BridgeW Wave is headqquartered in Saanta Clara, C California, USA A. For more infoormation, visit http://www.brid h dgewave.com. BridggeWave Communnications, Inc. 33500 Thomas Rd. Santa Clara, CA 950544 USA + (866) 577-69008; +1 (408) 567-6908 Ph: +1 @BridgeWave Emaiil: sales@bridgew wave.com © 2011 BridgeWavee Communications, Inc. All rights reseerved. All other traddemarks mentionedd in this document oor website are the pproperty of their resspective oowners. ©2011 BridggeWave Comm munications, Innc. Page 10 of 110
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