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To: Igor Nasonov who wrote (8852)7/6/1998 3:57:00 PM
From: Elmer Flugum  Respond to of 12559
 
Frame Relay Holds Its Own Over
ATM
(07/06/98; 1:38 p.m. ET)
By John T. Mulqueen, InternetWeek

Two banks on opposite coasts and competing in
different financial markets share one view as they
overhaul their networks: ATM is not yet up to snuff.

San Francisco-based California Federal Bank (Cal
Fed) and Sumitomo Bank Capital Markets in New
York are each engaged in LAN and WAN projects
that rely heavily on frame relay.

Cal Fed, which is replacing a point-to-point systems
network architecture (SNA) network with frame relay,
is considering ATM, but only in the distant future.

"We are looking at ATM for the future, but the major
carriers are not ready for prime time" with the required
infrastructure -- namely, written procedures,
documentation, and ongoing testing to compete with
frame relay, said Thomas Nanomantube, Cal Fed's
senior vice president of information and technology
services.

Sumitomo has a frame relay network from Concert
Communications that connects its New York office to
branches in London, Hong Kong, and Tokyo.
Someday, that network will migrate to ATM, but not
soon.

"Public ATM networks are still in their infancy and
remind me of where frame relay was five years ago,"
said Rob McKenna, vice president of global network
engineering at Sumitomo. "There is no quality of service,
and you don't know what the response time and
reliability is. Big carriers have the services, but they are
more like pilots."

Voice calls have become so inexpensive that it is not
economical to put in an ATM network just so voice can
be combined with data, he said. And the standards for
handling voice over ATM are not set, he added.

"Ideally, once ATM matures and they get some
compression and work out something to [support]
voice more cost effectively, then we will see a seamless
LAN to ATM to WAN and back," McKenna said.

Cal Fed is migrating from SNA to frame relay to
increase communication links to branch offices and to
ease the acquisition of Glendale Federal Bank. Two
Glendale data centers are being consolidated into Cal
Fed's data center in Sacramento at a $30 million annual
savings, Nanomantube said.

The network upgrade will increase response time to
branches, lay the infrastructure for handling more
acquisitions, make it possible to roll out Internet
services for customers, and create a foundation for an
intranet.

Within some 400 branches, Cal Fed is replacing token
ring LANs with Ethernet networks running off Cisco
10/100 Catalyst 2924 switches. WAN connections will
be through Cisco 2524 routers. MCI is supplying
56-kilobit-per-second frame relay links to the branches
and T1 or T3 lines into data centers.

"The network was not meeting
our business requirements
because of response delays to
the branches," said
Nanomantube. "We wanted to
[Web-enable] the branches
and allow them to do that
without impacting response
times."

In addition, the network
connects its headquarters in
San Francisco to loan and
mortgage offices in Maryland
and Texas. The network will
have 400 routers and 600
switches in the branch offices,
and 20 additional routers and
about 100 switches in other
offices around the country.

Most of the bank's traffic is from typical financial
transactions such as credit verifications. ATM machines
are on the LANs, but have their own WAN
connections. Nanomantube said ATM traffic will be
wrapped in Synchronous Data Link Control protocol
and shipped across the WAN in IP packets. Legacy
SNA traffic will run under Novell's Internetwork Packet
Exchange protocol in an IP packet on the frame relay
network.

Nanomantube is on a tight schedule. In any given week,
20 to 30 branches are being cut over; all 400 are
supposed to be completed by early next year.

Cal Fed will roll out Internet banking services next year.
That may include processing of auto loans and
consumer mortgages. The website today is used for
informational purposes only. "We have got the frame
relay network now and can move [ahead],"
Nanomantube said.

In New York, Sumitomo's overhaul will build the
network infrastructure for the next three to five years
and let network managers tailor bandwidth to the most
important application and business needs, said
McKenna.

Sumitomo is installing 3Com SuperStack II Switch
1100s as well as 3300s and 3500s that connect to
3Com CoreBuilder 5000s. The bank has 18 of the
5000s, but is replacing some of them with 30 of the less
expensive stackable switches, McKenna said.

The switches also replace costly Cisco 7000 routers,
which will be moved to the network edge to handle
frame relay connections. The 7000 is an old router, and
newer models would have cost twice as much as the
stackable switches, McKenna said.

Still, he will use new smaller Cisco routers -- probably
4500s -- for the frame relay WAN connections
because they are more robust than 3Com's, he said.

"We are looking at ordering CoreBuilder 9000s later
this year for more port density," he said. "We will
probably get two of those and put them in the first
quarter of 1999."

McKenna said the stackable switches are
802.1pq-compliant and will lay the foundation for
intelligent network and quality-of-service guarantees.
"We will be able to tailor our traffic flow to applications
that are most important to the business, and, ultimately,
flagging priority traffic," he said.



To: Igor Nasonov who wrote (8852)7/6/1998 4:04:00 PM
From: Elmer Flugum  Read Replies (1) | Respond to of 12559
 
One-stop LAN/WAN
shop

Nortel's multibillion-dollar purchase of Bay
Networks will bring voice and data under one
roof

By Brian Riggs

orthern Telecommunications Ltd. staked a
claim to new territory in the enterprise IP
networking space last month when the company
announced its plans to acquire Bay Networks Inc.

The $9 billion deal promises to thrust Canada's
century-old provider of telecom equipment into
more direct competition with the likes of Cisco
Systems and other enterprise vendors.

The goal is to offer an end-to-end line of voice and
data equipment that combines voice, video, and data
on LANs and WANs running IP, ATM, and frame
relay.

Customers say they look forward to such a
one-stop shop, but analysts warn that Nortel has yet
to prove itself as an IP networking vendor. "On the
data side, they are still neophytes," said Craig
Johnson, principal at The PITA Group, a
consultancy in Portland, Ore.

Convergence
Corporate network managers say they are looking
for end-to-end equipment that will let them carry
both voice and data across a single enterprise
network.

"From a convergence standpoint, this [merger] looks
pretty good to us," said Jim Bollinger, assistant
director of computing at Virginia Military Institute in
Lexington.

Bollinger uses Nortel switches for voice traffic and is
building a fast Ethernet-based campus based on Bay
Networks Accelar switches.

"We'll eventually see our phone traffic move off of
our cross-campus copper and ride on the data
backbone," he said, adding that he hopes a
combined Nortel/Bay Networks will provide him
with a straightforward way to combine voice and
data traffic over both LANs and WANs.

Nortel also hangs its hopes on such an end-to-end
line of converged voice and data products.

"Nortel's expertise has been in the public wide-area
networking space, whether it is from the carriers
themselves or on the edge of the [enterprise]
network," said John Roth, president and CEO of
Nortel in Toronto. "But we have never been in the
LAN business per se."

Analysts note that Nortel already dominates the
enterprise ATM and frame relay switch market,
although the majority of its equipment is purchased
by companies outside the United States.

Nortel has been gradually adding IP to its
development efforts. Two years ago it acquired
Micom Communications Corp., a developer of
voice-over-IP and voice-over-frame-relay access
equipment in Simi Valley, Calif. More recently,
Nortel bought a 20 percent stake in terabit-speed
router startup Avici Systems Inc. in Chelmsford,
Mass. and purchased another Chelmsford startup,
Aptis Communications Inc., which develops
multiservice access switches.

Despite the company's investments in IP vendors,
the Nortel division that oversees development of its
ATM backbone switches has stridently promoted
ATM as the only way to carry IP and multiprotocol
traffic across the WAN, said John Coons, director
and principal analyst at Dataquest Inc., a market
research company in San Jose.

Roth dismissed this apparent schizophrenia as
healthy technology agnosticism. "We have tried to
avoid becoming religious" about specific
technologies such as ATM or IP, he said. "I'd rather
give my customers a choice than have them find that
we did not have a solution that they thought was
critical."