Asynchronous transfer mode isn't winning the high-speed networking race, But it does manage a strong showing in several vertical markets.
By Richard Adhikari, Sm@rt Reseller
Asynchronous Transfer Mode (ATM) is like a rookie driver surrounded by seasoned Ethernet alternatives on a high-speed raceway: It shows plenty of promise, but it never quite manages to earn the checkered flag.
Earlier this decade, many vendors bet that ATM would emerge as a premier high-speed networking standard that blankets LANs and WANs. After all, proponents argued, ATM supports data, voice and video connections at 155Mbps and beyond.
The ATM evangelists, however, failed to anticipate the rise of Fast Ethernet and more recently Gigabit Ethernet. Fast Ethernet solutions offer resellers and their customers a familiar technology at a much lower cost than ATM. What's more, per-port Gigabit Ethernet prices are expected to fall below ATM later this year, according to market researcher Cahners In-Stat Group.
And therein lies the rub: While most resellers focus on Ethernet solutions that grow cheaper by the day, savvy VARs are complementing their sales efforts with ATM gear for LANs and WANs. By selling ATM solutions into several vertical markets including finance, health care, engineering and education those VARs and systems integrators are driving off with bigger profit margins than Ethernet could ever offer.
Just ask GTE Corp. The service provider, with an assist from ATM pioneer Fore Systems Inc., recently installed an ATM backbone at Texas A&M University that supports several major research initiatives, including:
mammography imaging at the University's Institute of Biosciences and Technology in Houston; video streaming and desktop videoconferencing at the Center for Distance Learning Research in College Station; and high-speed connections to National Science Foundation (NSF) supercomputing centers.
Speed Isn't Everything Instead of promoting ATM's speed, most of its resellers focus on its flexibility, reliability and management capabilities. ATM has several distinct strengths, including quality of service (QOS) and support for switched virtual circuits.
ATM's QoS, for example, enables customers to prioritize traffic down to the end user. At a university, for instance, a doctor viewing imaged medical records can receive a higher network priority than a student's e-mail transmissions. And, because ATM offers strong management capabilities, it can oversee non-ATM links in conjunction with QoS.
Of course, Ethernet does have an RSVP protocol for QoS, but that's no match for ATM's offering, says Forest Preston, product line manager for network adapter cards at the computer systems division of Sun Microsystems. "RSVP is dropping from favor, as people realize that it's at best only an approximation to guaranteed QoS, which ATM offers," Preston says.
Flexibility ATM is also a good option for customers who crave more bandwidth management. If an application suddenly requires more bandwidth, it sends in a request to the ATM network, which responds accordingly.
This bandwidth-on-demand feature is enabled by ATM's architecture. Unlike TCP/IP, which is based on packets, ATM technology is based on small, constant-sized cells that enable traffic to be switched very quickly so fast that you can statistically multiplex isochronous data together with computer network traffic. That statistical multiplexing provides for bandwidth-on-demand.
ATM's flexibility also lets customers implement permanent virtual circuits (PVC) and switched virtual circuits (SVC). Within ATM, you can dedicate several parts of bandwidth between two points, so users don't have to use the entire bandwidth of the circuit. The dedicated bandwidth creates a PVC.
In contrast, SVCs offer a more connectionless-oriented service with more flexibility. They let users change prioritization of circuits dynamically on a call-by-call basis within the ATM environment, says Richard Stankevich, product marketing manager at General DataComm Inc. in Middlebury, Conn. That capability lets customers use WAN links more flexibly.
John Armstrong, chief analyst of networking at Dataquest in San Jose, Calif., says there's been a steady growth in demand for ATM as a backbone technology over the past four years.
Market Opportunities In addition to serving as a reliable, flexible, high-speed networking backbone, ATM is ideal for several other uses. Timothy Hale, ATM product marketing manager at 3COM, says ATM is "extremely successful" in the health-care, medical imaging, education, financial and government markets, which often require real-time communications across local- and metropolitan-area networks (MAN).
At Florida health-care provider Health First Inc., for instance, an ATM network anchored by ForeRunner ATM switches has cut telephone access costs by $120,000 annually. Roughly 50 percent of Health First's voice traffic has been integrated onto the organization's data network, according to a recent report from Fore and Health First.
Another avenue for resellers to consider is building virtual LANs that run across the WAN. ATM lets users build very large, flat networks, in which distributed local-area networks are connected over the WAN to create a virtual or emulated LAN.
The appeal here? Customers can switch traffic over the WAN or even MAN instead of having to route it. That makes for faster speeds and more manageability, because routing can get very complex, 3Com's Hale says.
As an added plus, setting up emulated LANs over large geographical areas using ATM dramatically cuts the cost of wide-area links. The catch: There must be a business case for linking up the LANs. Notes Sun's Preston: "If you're talking about an environment in which the LANs have got a minimum amount of community interest with LANs in other areas, then the cost of ATM or even Gigabit Ethernet doesn't justify it."
But for deep-pocketed customers who need bandwidth-on-demand and top-notch QoS, ATM certainly fits the bill. |