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ATM is Not Dead! U.S. New Report Stresses ATM's New Roles in Enterprise Networking
PR Newswire - December 22, 1997 07:02
%CPR V%PRN P%PRN
CHARLOTTESVILLE, Va., Dec. 22 /PRNewswire/ -- Reports of the death of ATM
are grossly exaggerated. So says a new report from Communications Industry
Researchers, Inc., (CIR) a market research and consulting firm based here.
The new study, ATM MARKETS: A SECOND LOOK -- THE ENTERPRISE NETWORKING
ENVIRONMENT, claims that, while the expectations for the ATM market have
indeed declined over the past 18 months, it still remains highly viable.
"ATM has been transformed rather than killed," says Lawrence D. Gasman,
President of CIR. "While ATM was originally positioned as a technology that
would dominate every level of enterprise networking, it is now emerging as the
ultimate in backbone and multiservices platform solutions." CIR expects the
U.S. market for ATM products and services to reach amore than $2 billion
within ten years (see exhibit).
Ethernet: ATM Killer or Driver?
This transformation of ATM is illustrated by one of the key trends
identified in ATM MARKETS: A SECOND LOOK -- THE ENTERPRISE NETWORKING
ENVIRONMENT. The new CIR report points out that the emergence of Fast
Ethernet and Gigabit Ethernet is bad news for the ATM workgroup market, but
good news for those selling ATM uplinks for LAN switches, routers, etc. With
shared-bandwidth LANs pumping out 100 Mbps or 1 Gbps, there is less reason to
install ATM workgroups than there was in the past, but there is more reason
to use ATM in LAN backbones. According to ATM MARKETS: A SECOND LOOK -- THE
ENTERPRISE NETWORKING ENVIRONMENT, while we may also see Gigabit Ethernet play
a role in this segment of the network, Gigabit Ethernet has yet to be fully
standardized and there are still open questions about its ability to handle
quality of service issues effectively and the distance over which it can be
extended.
ATM's chances also seem to be increased by the fact that IP is
flourishing. While the ATM community's hope for a dominant ATM-centric suite
of upper layer protocols now seems to be dashed, there is a frantic search for
new products that will combine the best of both the ATM and the IP worlds.
The strengths and weaknesses of the hybrid IP/ATM solutions that are now
being proposed by vendors is a major focus of the new CIR study. Each of
these solutions -- including some that receive little attention in the
trade press -- are discussed. Another focus of the report is the role that
ATM is increasingly playing as a multiservices access platform. This is yet
another sign of the transformation of ATM. ATM access platforms were once
seen as part of a monolithic ATM network. They are now the gateway through
which diverse services -- frame relay, IP, TDM, and native LAN, as well as
cell relay -- enter and leave the network.
A Second Look
ATM MARKETS: A SECOND LOOK -- THE ENTERPRISE NETWORKING ENVIRONMENT
provides a lot more than just an analysis of the new role of ATM. This new
report is the successor to one of CIR's most successful reports: ATM MARKETS:
A VERTICAL MARKET ANALYSIS. In the tradition of this earlier report, ATM
MARKETS: A SECOND LOOK examines the market opportunities for ATM in six
critical end user segments: manufacturing industry, wholesale and retail,
financial services, healthcare, education, and government. Other chapters in
this report provide in-depth discussions of the drivers for today's ATM
enterprise network, key enterprise technology trends and their implications
for the ATM market and the market implications of ATM software and protocol
trends, as well as providing detailed profiles of the ATM strategies of
leading vendors. The report also contains detailed ten-year forecasts of the
ATM enterprise networking equipment and services market in terms of both
volume and value. The report contains forecasts for the U.S., Pacific Rim,
Western Europe and Latin America, with the U.S. forecasts broken down by
vertical market.
ATM MARKETS: A SECOND LOOK -- THE ENTERPRISE NETWORKING ENVIRONMENT is
part of a two volume set. The next volume: ATM MARKETS: A SECOND LOOK -- THE
PUBLIC SERVICE PROVIDER ENVIRONMENT will be published in January, 1998.
The Table of Contents and Executive Summary for ATM MARKETS: A SECOND LOOK
-- THE ENTERPRISE NETWORKING ENVIRONMENT are available at CIR's Web site
(http://www.cir-inc.com). It is priced at $5,000 and is also available in
HTML and PDF formats at an additional charge. Both volumes of ATM MARKETS: A
SECOND LOOK may be purchased for a combined price of $9,000. Further details
of this study can be obtained from Robert Nolan at 617-923-7611 or
rob@cir-inc.com
Communications Industry Researchers, Inc., has been in business since
1979. The company publishes market studies and newsletters, and carries out
demanding custom market research assignments on the commercial aspects of new
communications technologies.
U.S. MARKETS FOR ATM ENTERPRISE NETWORKING PRODUCTS AND SERVICES
($ Millions)
1998 2000 2003 2007
ATM WORKGROUP SWITCHES 5.2 8.9 24.1 77.8
ATM PC/WORKSTATION INTERFACES 3.9 6.9 11.9 20.9
ATM UPLINKS FOR LAN SWITCHES,
ROUTERS, ETC. 84.6 150.8 264.5 492.2
ATM ACCESS PLATFORMS/EDGE SWITCHES 31.7 57.1 143.8 409.3
ATM BACKBONE SWITCHES 38.4 62.3 98.2 198.6
TOTAL ATM HARDWARE MARKET 163.8 286.0 542.5 1198.8
ANNUAL REVENUES FROM SERVICE 284.3 390.5 526.3 869.5
TOTAL U.S NON-GOVERNMENT
MARKET FOR ATM HARDWARE AND
SERVICES 448.1 676.4 1068.7 2068.3
SOURCE Communications Industry Researchers, Inc.
/NOTE TO EDITORS: This news release is an update to DCW025 transmitted on
Wednesday, December 10, 1997./
/CONTACT: Lawrence Gasman of Communications Industry Researchers,
804-984 0245, ext. 11, or ldg@cir-inc.com/
/Web site: cir-inc.com
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