Starting in the early 2000’s, Carriers worldwide started petitioning their suppliers for a collapsing of the IP and Ethernet layers. The aim was to reduce CAPEX and OPEX by aligning Ethernet and IP in the same unit to streamline service offerings and therefore reduce costs. In 2003 Alcatel responded by purchasing TiMetra (later known as the 7750), Cisco added more functionality to their 7600 series and later on in 2006 Juniper responded with the MX series.
This shift towards Ethernet as a service layer was inevitable but only the beginning. To complete the shift the Ethernet and WDM/Transport layers need to collapse. This is exactly what has been afoot since 2005/2006 and we are now seeing the benefits of Vendors efforts.
Recent news snippets about the Optical Ethernet Metro Core:
Not only are existing vendors promoting new technologies, products and client wins, there are a number of new entrants into this space.
All of these new entrants as well as the efforts from the established vendors are approaching the problem with the same basic approach. Each of these vendors is working on a WDM based solution to achieve bandwidth densities and front-ending this with scalable ethernet switching to provide native services.
There are a number of reasons for this direction, let’s explore them one by one:
1. Native IP/Ethernet – This goes (for the most part) without saying. QoS at the IP and Ethernet layers and full visibility of those technologies between nodes (and vendors gear) is now standard.
2. Extension of the Router Port – I am seeing a shift more and more to larger Metro Core routers where the “hard decisions” are made. The most cost effective way out to the customer then is with a simplified delivery mechanism and Ethernet is, of course that mechanism.
3. Ethernet Service Demand – The amount of bandwidth in the metro is growing exponentially (how often have we heard this 
) and the demand is for IP/Ethernet services so, of course, a merging of the two technologies seems inevitable.
4. Latency – Quickly becoming a major factor in business customers choice of service provider. From Service providers that support consumer gaming to Wall Street firms who derive monetary value out of minimizing it, latency is quickly becoming a major factor in customers’ choice of service provider
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