IBM takes on cross-border ATM challenge
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CWI News Listing for Issue 205, Monday, 18 May 1998
London
IBM takes on cross-border ATM challenge
By David Molony
As disillusionment sets in with the network alchemists who promised to turn ATM into a fully featured cross-border service, the signs are that some users are taking matters into their own hands.
Despite nearly a decade of interoperability trials, extensive international asynchronous transfer mode services - involving multiple carriers and offering flexible, user-configurable bandwidth management and differential grades of service - have conspicuously failed to emerge.
But even at the risk of engaging in complicated network management issues, IBM is taking the plunge with a plan for a global ATM enterprise network. The network will link the company's sites around the world, said a source.
IBM, a service provider as well as a corporate user, has said before that it will use ATM in a global backbone. In 1993 the company disclosed that it would provide ATM-based services to its own corporate data network customers.
But the new project is initially dedicated to providing the company's own network services. "We are looking at a global ATM infrastructure for our internal use," stressed an IBM telecoms transport consultant. "International services [for others] may come later."
Analysts say IBM's need for a service platform makes it highly unusual among users and that it is not necessarily a pathfinder. But IBM is not alone. Vendors report heightened interest in the possibilities of "build your own" global ATM.
"I've had three or four customer meetings in the past month where they have asked me about putting together their own ATM network," said Peter Boland, Maidenhead, England-based vice president of Webtone business development at Canada's Northern Telecom Ltd.
The driver, say international enterprise network managers, is that while some national operators can offer reliable national ATM services, they cannot guarantee peering arrangements with other domestic operators. These are vital to ensure ATM data is carried seamlessly across borders.
Biggest problem "The biggest problem with bandwidth applications is getting good international facilities," said the IBM consultant. "You can never be sure whether international carriers can give you what you want. They can't always pass on data in the same format."
Other major corporate users say that building one's own infrastructure is valid only for companies that have centers with really large data needs - but that time may be approaching for more users.
"In the past we didn't have enough critical miles to build our own infrastructure," said Eric Richartz, senior telecoms strategist of Shell Information Services BV in The Hague. "I'm not so sure that with the way data has grown that's the case now. [IBM] may be coming back from outsourcing because they have found traffic has grown faster than expected."
In fact, IBM is planning to base its global network on leased E2 (8 megabits per second) lines - relatively modest by carrier ATM standards, which can run at up to 622 Mbps.
Nortel is one of the few companies to have built a global ATM enterprise network, and Boland said it had been a slow and complicated process. He argues that what corporate users really need are "virtual private intranets" rather than the "separate leased intranets" they would find themselves running across their own ATM infrastructures.
By building their own ATM networks, users may gain extra manageability, but ATM's big advantage - providing more cost-effective bandwidth on demand - cannot be enjoyed if the underlying circuits must be leased.
Vendors say that the dilemma of whether to build or outsource could be resolved if carriers opened their networks to corporate users to manage their own sub-nets.
Nortel's Boland said that users should be given limited access to the carrier network through a local terminal into the management system. The user would then be able to select whatever bandwidth they needed at any time from the carrier network.
"Users want the flexibility of ATM and the ability to multiplex [voice and data channels] without having to buy a 34-Mbps pipe," said David Ross, managing director of systems integrator and ATM specialist K-Net NSI Ltd., of Odiham, England.
But if enough users move towards providing their own international solutions, analysts say it might at least accelerate the development of integrated international ATM networks.
And some observers believe carriers are already moving up a gear. "Until recently operators have been cautious about rolling out international services for ATM," said John Lilley, senior consultant at Dataquest Europe in Egham, England.
"This has changed quite dramatically in the past six months, with roll-outs from carriers such as AT&T and some regional operators ... ATM will become more important internationally over the next few years," said Lilley.
"Carriers will have to offer managed end-to-end services on a European basis to help retain their customers and add value beyond offering commodity bandwidth," he added.
Although some carriers have made moves to interconnect their national networks, this has so far been done on a bilateral basis and on individual routes. For example, Deutsche Telekom and France Telecom announced in March that their national ATM networks would interconnect cross-border between metropolitan points of presence.
"ATM has become invisible because it is disappearing into operators' core networks," said Margaret Hopkins, senior consultant at Analysys Ltd., of Cambridge, England. "Operators keep ATM for their own convenience. They are taking ATM to the edge, then offering frame relay or just IP at that point."
Typically, say analysts, the corporate customer will be running frame relay services in its enterprise network, but will want ATM long-distance facilities, because international data connections are easier to set up through ATM network management facilities.
Intranet advantages "For intranet, ATM has advantages [in] that you can scale up bandwidth in an orderly, quantifiable way," said Dataquest's Lilley.
But, say experts, while the corporate user may have expertise in installing and running ATM technology, managing a whole network requires huge resources.
"The question is always, 'How much data do you transport? How much usage can you really make of the facilities?'" said Shell's Richartz. "And let's not underestimate the number of staff you will need to run it."
Richartz said he would be sticking with his service provider, Equant International Corp. of Atlanta, Georgia.
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