Yes but to work well, requires some fairly high end networking links and equipment. Can we spell Asyncronous Transfer Mode (ATM)? You might be able pull it off with T3 or even a T1 if you really are clever.
Here is a nice link from cisco which gives some details.
If you want to trunk VLANs across an ATM cloud, you need to implement a technology called LANE. LANE maps VLANS (802.1q) to ELANS (ATM's version of VLANS). This is mainly due to the fact that ATM doesn't support broacasts.
Dan- dont forget about MPOA or *classical IP over ATM* which does support broadcasts. Requires a different setup then LANE. A few years ago we went with MPOA( multi protocol over ATM) due to 2 facts. LANE had a very high overhead cost and you could not route between LANE segments.
I have not worked with ATM lately so I dont know if these issues still apply. The MPOA required a Route Server and a Route Manager. The RS was a headless SPARC and kept the route tables straight. The Route Manager was a GUI interface for confguring the VLANs, Port grouping and such.
The cool thing was we did not have convert the entire network to ATM. We did the core and a few core servers ( Newbridge VIVID prodcut line)
But, like I said, it's been a long while since I've worked with ATM so take all this with a grain of salt
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