Ethernet has evolved from a local area to a wide area network technology. When it is used in a service provider environment, it has more complex requirements, which demand a set of management techniques for the Ethernet layer. Ethernet OAM comprises a set of management techniques for Carrier (or Metropolitan) Ethernet networks. Carrier Ethernet devices often have IP connectivity for management purposes, which might be used for IP OAM as an alternative management solution to Ethernet OAM. This paper provides an overview of Carrier Ethernet technology and evaluates whether, and until which extent, IP-based protocols can replace Ethernet OAM in Carrier Ethernet networks.