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REALITY CHECK: EPHRAIM SCHWARTZ                 http://www.infoworld.com
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Tuesday, November 23, 2004

THE WORLD ACCORDING TO AT&T

By Ephraim Schwartz

Posted November 19, 2004 3:00 PM Pacific Time

During the past decade, AT&T has been jettisoning divisions faster than
a heavyweight fighter sheds pounds trying to get back in shape for a
shot at the title: NCR in '94; Bell Labs in '96; AT&T Cable, AT&T
Wireless in '01; [EMAIL PROTECTED], Small Business Hosting accounts in '02.
Earlier this year, it announced plans to stop pursuing residential and
long-distance voice customers altogether.

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I met with Hossein Eslambolchi -- CIO, CTO, and president of global
networking technology services at AT&T -- over a light dinner to discuss
AT&T's IT strategy for the next decade. In a word, that strategy comes
down to services. Not voice services, or even VoIP, but SoIP (services
over IP). Eslambolchi told me emphatically, just short of pointing his
fork at me, that AT&T is no longer a voice company. It is a data
company.

The stats, albeit from AT&T, appear to back up that claim. Its IP
network handles 1,700TB of data per day, while its public switched
network handles 450TB per day. SoIP includes IP security, application
hosting, managed network services, and multimedia, including HD-TV over
IP and radio over IP.

Here's one example of what a company can do when it handles that much
data on a daily basis.

Stochastic analysis, a form of statistical probability that looks at
past behavior patterns to identify and predict future behavior, depends
on sampling. The larger the samples, the closer to 100 percent accuracy
in identifying a reoccurring pattern at a very early stage.

AT&T has a security service called Internet Protect. It uses stochastic
processing and an algorithm called Smart Sampling to extract information
-- rather than just data -- on 17TB of data daily, looking for patterns
that indicate a virus or DoS attacks. Eslambolchi told me AT&T
identified the SQL Slammer attack on the network three weeks before it
hit in large scale.

Eslambochi went a step farther to say that Internet Protect is getting
so accurate that companies will soon be able to eliminate on-site
firewalls.

"With that much data, stochastic becomes near foolproof," Eslambolchi
said.

AT&T is also moving aggressively on other technology fronts. It spends
$8.5 billion annually in fees to the ILECs (Incumbent Local Exchange
Carriers) for last-mile connection to business customers. You might say
Ma Bell is not amused.

To dramatically reduce those connection costs, AT&T will use WiMax, mesh
networks, and other broadband wireless technologies as a battering ram
to bring down the walls of those greedy ILECs.

In 12 to 18 months, AT&T will run trials in two undisclosed cities to
use WiMax for the last-mile connection to customers. AT&T has identified
approximately 245,000 buildings within the United States that house
business customers. AT&T is directly connected to 7,000 of those. WiMax
in particular will be a way to connect to the next 100,000, Eslambolchi
said.

With the largest IP network in the world, Eslambochi also said computing
power will take place; not at the end points or at the edge, but within
the network. It is all about policy-based computing, which allows
policies or rules to travel with the data in the network so that
decisions can be made simultaneous with generation of data.

This is the world according to Eslambolchi. Worth watching, don't you
think?

Ephraim Schwartz is an editor at large at InfoWorld.


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