Between 10-15 years ago Frame Realy and ATM Switcihng Network are the most common IT infrastructure you can see and hear from different businesses, but for some valid reasons their fame diminish and seldom you hear this kind of technology stuff nowadays. So the question now why this happened? Is it because Frame Relay and ATM Technologies cannot handle the traffic demand require by the post PC plus era (PC and Mobile devices FYI)? Well that’s we gonna share with you some of our insights behind this event, so stick around..
Cost – Is one of the BIG factors why these technologies doesn’t stay for long. ISPs and Telco’s cannot afford to maintain this kind of equipment as new Hardware Technology are emerging everywhere and the cost of competition is competitive comparing with their existing partners.
Vendor of these Frame Relay and ATM Equipment is dead? – This is already a given facts to everyone about merging and buy-out of companies, so the companies involve to this kind of technologies either been swallowed by Big Players and their technologies patent has been transfer to the new owner with different company vision and plans. Of course with the excemption of Cisco Technologies, other than that they are gone for good.
Network Engineers – Frame Relay and ATM is a very complex technologies to maintain and this require special skill set of Network Engineers. So having maintaining in-house Network Engineers is a costly OPEX for businesses that’s why the opted to go for IT Staff Outsourcing. Imagine the scope of handling and administering the VCI,VPI and VCL in millions scale.
Rise of Younger Generation of Technology Hardware Companies – Lots of new Hardware Tech Companies are rising and challenging the incumbent for being diversify and effective strategic partnership with another Tech Company (other field). So if you don’t innovate and align with the flow of changes then expect the Hardware Technology your company investing might not be profitable within the next 1 year.
Evolution of Processor and Memory Chip – All Switch devices (FRAD & ATM switches) handling Frame Relay and ATM technologies uses certain type of processor and memory chip, so if processor and memory chip performance exceed in the ten fold then lots of opportunities from Hardware Company to develop faster switching devices that can outrun the performance of FRAD and ATM switches.
Rise of Metro-E and MPLS Technologies – Cheaper, easier and faster alternative than Frame Relay and ATM Technologies. Nuff Said.
Telco & ISP Business Strategy – Why we include this because typically Telco and ISPs are mostly the one suggest to their customers new alternative of connectivity with reliable and faster than their existing, so the rest is history for the Frame Relay and ATM future.