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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: polarisnh who wrote (45347)	4/25/1998 3:31:00 AM
From: bucky89	Respond to of 61433

Hi Steven, ATM is dead in the LAN because LAN bandwidth is so cheap, and ATM technology is very expensive (both in terms of cost and processing overhead). There's relatively few cases where using expensive technology makes sense in managing cheap bandwidth. You can very cheaply and easily manage ethernet by switching it through the layer 3 ethernet switches you were talking about earlier (this is 3Com's specialty). If you run out of bandwidth, it's much easier and cheaper to throw more LAN switches at the problem than to convert to ATM. That's reality. Voice and multimedia runs very well within the confines of our switched LAN. The LAN switching technology offered by 3Com, Intel, Cisco, Bay, HP, and a zillion other companies is very cheap and scalable. There is no issue and ATM in the LAN in most cases is a solution in search of a problem. On the other hand, WAN bandwidth is quite expensive and ATM helps in maximizing utilization of that expensive bandwidth. When voice and multimedia start becoming prevalent in the WAN, that's when you'll especially need ATM switches to effectively manage and prioritize traffic over the the limited, expensive WAN bandwidth you have available. A few years ago, your opinion was definitely in the majority (ATM everywhere, including the desktop). However today, it's hard to come across a technologist who still holds on to this view. Of the people I work with who I most respect for their technical competence, not one believes ATM is appropriate for the LAN anymore. Good luck to you. Long on ASND!! Bucky89