X.25 Protocol Is Still Alive and Well

Enterprise Networks & Servers,  Jan 2004  by Shacklett, Mary

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Network communications infrastructures have seen so many advances over the past few years that it is easy to forget that there is still more than $10 billion worth of X.25 equipment deployed around the world. Like computer mainframes, X.25 continues to be a reliable and mature technology that organizations continue to run, and that IT decision-makers who are called upon to merge company IT structures need to be ready for.

X.25 is the earliest of the packet switching protocols. It predates frame relay, TCP/IP and ATM, but it is still used around the world for mission critical applications. As recently as eight years ago, it was the protocol of choice for companies that could not justify a network of leased lines for inter- and intra-company data communications. In Europe, X.25 carried the bulk of SNA and other transactional traffic.

X.25 networks are usually privately owned, but carry traffic for the public on a cost-per-packet basis. X.75 gateways interconnect the different networks, making it possible to communicate worldwide at reasonable cost. Much of this traffic has moved to other, more modern networks, but there remains a core of applications for which X.25 is still very suitable, or where the costs of change are high. Today, the main use of X.25 in North America is for credit and debit card transactions and for supporting legacy equipment.

"Generally, X.25 communications are low-speed, averaging 64kbps or less," said David Mandelstam, president and CEO of Sangoma Technologies (www.sangoma.com) of Markham, Ontario, a cross-platform connectivity hardware and software manufacturer for WANs and Internet infrastructures. "At one time, X.25 was the workhorse of the industry. Then frame relay was developed as lines became more reliable, followed by ATM. Both protocols support much higher line speeds than X.25, but are not intrinsically error-free like X.25, which has hub-to-hub error checking. An error-free environment is an important factor for financial transactions like credit card verification."

With tight project deadlines and even tighter budgets, companies are taking a hard look at whether to de-implement proven and reliable X.25 networks. "No one wants to throw away equipment that is working and stable," said Mandelstam. "But because X.25 is not leading edge, it is becoming more difficult to find equipment and expertise to support these networks."

Because of this, Sangoma has seen a sharp upturn in its X.25 business, which comprises roughly 10 percent of its overall revenues.

The company has been seeing new X.25 projects in India, Japan and Europe as well as in North America. Much of this is in support of equipment installed five or ten years ago, when X.25 was still the dominant technology. Projects include telephone billing systems, lottery terminal networking, interaction with aviation systems, credit card transaction switching and ATM machine connectivity.

"Although we provide solutions and support for all network communications protocols, we are excited about the growth in our X.25 business," stated Mandelstam. "Large suppliers are leaving the X.25 business just as there has been a resurgence in the market. X.25 is a complicated protocol covered by several international standards. Also, existing X.25 solutions that are the subject of life extension programs are by their nature mission criticat. It is therefore important for larger companies to deal with organizations that continue to maintain and enhance their X.25 offerings."

Meeting the Managers Needs

More than anything, IT managers charged with integrating large to mid-sized companies need to be poised for infrastructure projects that come about out of corporate restructurings or mergers. Few have the technical personnel on board who are knowledgeable about every single communications protocol that is out there, which is where communications "neutral" organizations like Sangoma come in.

Investing over 30 percent of its revenues in research and development, Sangoma supports all generations of network protocols -from pre-1976 BiSync to the latest ATM cell relay, with speed ranges from 4-8Kbps to multi-megabits/second. Sangoma's built in line interfaces include everything from serial RS232 through ADSL, ??/EI andT3/E3.

"Over one quarter of our business is supplying the building blocks for others, so they can complete the projects they are working on," said Mandelstam. "For example, a company might come to us with the need to connect to a certain telephone switch. They know what they need to do, but they're not going to build the hardware and develop X.25 for it themselves. They look for an easy-to-use plug-in communication component, so a very important part of our business is supplying toolkits, manuals, and other material needed to support third party projects. There are strong customization and support requirements as we help people work with our hardware and software, because many of our customers rely on us totally to resolve all their communication issues."