FCoE (Fibre Channel over Ethernet) is a storage networking protocol that supports Fibre Channel natively over Ethernet. FCoE allows Fibre Channel frames to run alongside traditional Internet Protocol (IP) traffic, because it encapsulates the frames into Ethernet frames. 

With Fibre Channel over Ethernet, Fibre Channel becomes another network protocol running on Ethernet, alongside traditional IP traffic. This means Fibre Channel over Ethernet runs alongside IP traffic on Ethernet, unlike iSCSI which runs on top of IP using TCP.

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