As attractive as the WLAN option is, however, IT managers must confront complex issues. One is how to deploy a network today that can be upgraded easily in the future. Another is security. A firewall costing thousands of dollars can be completely compromised by a single incorrectly configured access point, even when that access point is behind a brick wall. WLANs could also fall victim to their own success as multiple network standards, including Bluetooth, start to interfere with one another. There are also IP addressing issues, and locating access points across subnets makes it impossible to roam from one location to another without mobility middleware.

The good news is that solutions exist for most of these problems, and forthcoming standards will address many of today's limitations. WLAN technology is good today and will only get better, but to be successful in using it, you must carefully navigate through an evolving landscape.

Market Trends

There's no doubt that the WLAN market is booming. Worldwide sales of WLAN equipment increased by 80 percent last year, to more than $1 billion, and will approach $3.2 billion by the end of 2005, according to analysis firm IDC. Traditionally, WLANs have seen greatest acceptance in vertical markets, such as health care, inventory control and warehousing, where companies could justify high equipment and integration costs because the applications provide a clear ROI (return on investment). But in the past year, use has expanded into horizontal markets, including mainstream businesses, homes and educational environments.

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Among mainstream enterprises, high-tech companies and those with lots of laptop users are leading the charge to wireless. For example, Microsoft has more than 2,000 access points serving upward of 10,000 WLAN users. Companies are deploying access points in meeting rooms, cafeterias and classrooms. Small companies are finding the technology cost-effective because they can set up shop in one location, often low-rent digs without network cabling, then easily move the network into new offices as the company expands. Home users are getting into the act as well, sharing peripherals and broadband Internet connections--sometimes with their neighbors.

An increasing number of public WLANs are at airport gates and lounges, hotel meeting rooms, convention centers, and shopping malls, with MobileStar Network Corp. and Wayport the current market leaders in providing this access. What's exciting for users is being able to use the same notebook or PDA and wireless adapter at work, at home and while traveling.

Although build-outs are at an early stage, many market analysts argue that WLAN technology is better suited for public broadband connections in hot-spot zones, such as airports, than is current 3G (third-generation) cellular technology, which is still years away from widespread deployment. Lower infrastructure outlays and the use of unlicensed spectrum mean WLANs can deliver data at less than a tenth of the cost of cellular-based networks. The question for cellular operators is whether to embrace WLAN technology or try to compete against it.

Some European cellular providers, including Sonera Corp., of Finland, and Telia, of Sweden, offer WLAN service as an option to their mobile subscribers, but North American operators are as yet undecided. Why, you ask, would operators spend tens of billions of dollars to deploy 3G cellular networks when current cellular technology in combination with WLANs provides most of the same benefits at a fraction of the cost? The simple answer is that WLAN technology is not now on most operators' master plans, and it will not be added without a considerable amount of technical work, not to mention a readjustment of market vision.

WLAN products themselves are increasingly attractive. First, prices have come down dramatically over the past year, with PC Card formats finally breaking the magic $100 price barrier. Compare this with $500 per card several years ago. Access points used to cost $1,500, but now SOHO (small office/home office) gateways that integrate router functionality and firewalls can be had for as little as $200. Of course, you get what you pay for, and if you want an access point with roaming support, enhanced security features, good range and management functions, you will pay more.

Another important attraction of today's products is interoperability. Thanks to the efforts of the Wireless Ethernet Compatibility Alliance and its WiFi (Wireless Fidelity) certification, most cards will work with most access points, though mixing and matching access points from multiple vendors to support effective inter-access-point communication will require a forthcoming new standard (for a rundown of standards, see "Wireless LAN Standards," below).

Another crucial driver in this market, and one that gets little mention, is the matter of applications. By applications, we mean not only the NOS, such as Novell NetWare or NetBEUI, but also end-user applications, like Lotus Notes or Microsoft Exchange. When you must deliver applications to a cell phone, slow speeds, high network latency and high usage costs demand that you carefully configure your application or use wireless middleware or the services of a wireless ASP (application service provider). This often means you have to rebuild your application specifically for wireless. But with WLANs, thanks to high speeds and low usage costs, companies can use nearly all their existing networking applications without making any changes. The elusive killer application for wireless networks might just be any application.

There are some caveats, though. If you want to take advantage of public WLAN service to access a private intranet, you should consider VPN software to protect your communications from eavesdroppers. And if you want to maintain an IP address across subnets or keep sessions alive as you drop in and out of coverage in an extended area, you will need the assistance of wireless middleware from the likes of NetMotion Wireless. But these are minor complications compared with the benefits of mobile broadband.



One new application that could end up being a major driver for high-speed WLANs is video in homes. Today, digital set-top boxes are needed at each television where you want reception--an expensive proposition. A less costly approach is to have one box that receives the digital cable or digital satellite signal, and a WLAN that shunts multiple video streams to televisions throughout the house. This will be possible with new WLAN standards that provide the necessary speeds and QoS.

The market has also overwhelmingly accepted one wireless standard: IEEE 802.11b. At 11 Mbps, IEEE 802.11b provides sufficient speed for most applications, even though actual throughput is only about 6 Mbps, and a busy 802.11b network degrades much faster than wired Ethernet because of a less efficient medium-access protocol. IEEE 802.11b is making serious inroads to the home environment as well, so the fate of the home-oriented HomeRF (Home Radio Frequency) specification has become quite uncertain, especially with one of HomeRF's major initial backers, Intel, defecting to IEEE 802.11b.