The use of Ethernet as an underlying transport for Fibre Channel (FC) frames is disclosed in the Fibre Channel Over Ethernet (FCOE) protocol. In FCOE, the FC physical layer and part of the FC-2 link layer are replaced with the Ethernet physical and link layers. Each FC frame is encapsulated within an Ethernet Frame. The payload of the FCOE frame contains type information from the FC Start Of Frame (SOF) indicator, the FC header, an optional FC payload, and type information from the FC End Of Frame (EOF) indicator. In one embodiment, an Ethernet network carrying FCOE replaces a standard FC network. In another embodiment, devices implementing FCOE may be implemented in a blade server. The entire backplane is Ethernet, over which both storage and networking traffic can be run. The Ethernet links are connected to an Ethernet switch, a FCOE/FC converter, and a FC switch.