Cloud is driving the Carrier Ethernet evolution. The MEF is serious about the evolution of Carrier Ethernet to meet the new demands of Cloud. The first and foremost would be to understand the elastic and dynamic demands of Cloud which are pretty new to Carrier Ethernet scheme of things. MEF is trying to see how best the CE can evolve to meet these elastic demands. CE 2.0 has already set the pace. CE 2.0 addressed the major requirement for mobile backhaul in terms of managing Multiple CoS; Secondly, with CE 2.0, the number of services increased from 6 to 8. Two new services were introduced under E-Access. E-Access is needed when there is UNI that needs to be connected to ENNI-something that would be of interest to Cloud service providers e.g if a service provider owns UNI ; it can backhaul multiple cloud services to ENNI. As per MEF, it is targeting two key applications for cloud industry. One to enable private cloud connectivity of business customers through Service Provider’s cloud and secondly to interconnect data centers of service providers. The first one is of important since business customers would need certain SLA for the connectivity of their mission critical applications. This is where Carrier Ethernet can really help in ensuring the SLA.