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Virgin Media Business Partners with Savvis to Launch Cloud-based 'Virtual Private Data Centre' | Sep 29, 2011 | Data Center Services | Analyst: Gary Barton Event Summary September 28, 2011 - Virgin Media Business (VMB) has partnered with Savvis to launch Virtual Private Data Centre, and IaaS product that represents VMB's first foray into the cloud arena. The service is designed so that customers can access virtual computing power both for running business services and for testing and development purposes. The service is open to all VMB MPLS customers and is charged on a metered basis depending on data usage, bandwidth and services taken with no minimum contract. | Read Press Release | Quick Take Analytical Summary • Current Perspective: Positive on Virgin Media Business’ launch of 'Virtual Private Data Centre' (VPDC) in partnership with Savvis, because VMB has well established credentials for delivering high quality fibre-based connectivity services and it has partnered with a recognised big hitter in the data centre/cloud market. The operator will have to overcome the ‘new kid on the block’ tag and convince some customers that it is more than just a ‘pipes’ provider. However the Virgin brand will open a lot of doors and VMB’s reputation for reliability and good customer service will make it a natural choice for existing or potential customers for its LAN services. • Vendor Importance: High to VMB, because although it has landed several large contract wins over the last 18 months (e.g., LGfL, Westminster City Council), these have largely been for data and LAN services. This IaaS launch gives it a strong opportunity to draw further revenue from its existing customer base and will help it to win more customers as it broadens its overall capabilities. This launch is also an important first step towards launching further cloud services such as SaaS and PaaS. • Market Impact: Moderate on the UK market, because although VMB is a large competitor with a real sense of positive momentum, there is a ‘me too’ element to this launch. Competitors such as BT, C&W Worldwide and Colt will fairly point out that they already offer advanced cloud portfolios, including IaaS, and that VMB is playing catch-up by re-selling an existing Savvis product. However, Virgin’s network capabilities dovetail effectively with VPDC, whilst its strong regional presence and installed customer base of medium to large sized enterprises will allow it to continue to establish itself as a challenger. CLIENTS ONLY Current Perspective Competitive Strengths and Weaknesses Response & Recommendations Buyer Actions Analytical Perspective | Client access - Full report in Data Center Services | More information Top Top

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Virgin Media Business set to shake up cloud market by freeing businesses from IT constraints

Virgin Media Business today signalled its ambitions to shake up the cloud computing market with jargon-free advice, easy-to-use technology and straightforward support. The company will deliver products and services that provide the clarity and support to enable UK organisations to make the right choices about where and how they access their IT infrastructure and applications.

In providing straightforward yet powerful virtual computing services, Virgin Media Business is making a direct challenge to competitors that have brought unnecessary confusion to the cloud, complicating what can be a simple and highly effective way to manage an organisations IT. “Organisations are craving some clarity and no-nonsense advice. Providing easy-to-use, simple cloud services that do exactly what they say they’ll do, really well, is a breath of fresh air. Most are already signed up to the benefits of the cloud, but constant jargon and complicated advice have created a real barrier to entry,” said Mark Heraghty, managing director, Virgin Media Business.

“Today, we’re launching a cloud product and a market strategy that’s got all the right ingredients. We’re backing this up with the largest nationwide fibre-optic network, and the straightforward advice and support everyone expects from a Virgin company. We’re already working with organisations across the UK that don’t want to be constrained by their IT systems, systems that are no longer able to respond to the rapidly changing world we now find ourselves in. The dramatic rise in data volumes, the move to a remote workforce and the merging of business and consumer technology are all putting greater pressures on today’s businesses. Cloud gives organisations more choice in how to deal with these pressures and we’re here to show that cloud doesn’t have to be complex. In fact with us it’s amazingly simple,” Mr Heraghty said.

Virgin Media Business is kicking off its move into the cloud market with the launch of its first true cloud product, the Virtual Private Data Centre (VPDC), which will provide all types of businesses with powerful virtual computing power. For example, the new service will enable enterprises to quickly and effectively test and develop applications without having to pay for hardware or give up vital office space. Equally, businesses looking to take advantage of a vibrant online market can use the service to develop and launch their e-commerce facilities, giving them the ability to easily increase their virtual servers as customer demand builds.

The VPDC service will allow IT managers to gain virtual computing power quickly and easily by designing and deploying their own private data centre in just a few clicks. They can have it up and running the same day and the set-up can then be modified as and when required, with changes being ready to go within 90 minutes.

Andrew Barron, chief operating officer of Virgin Media, said:“Our customers are hungry for simplicity and technology that really works for them, whether they be people wanting to be entertained at home or businesses striving to be freed from the constraints placed on them by their IT infrastructure.

“In a market that has traditionally been subjected to hype, jargon and unsubstantiated claims, we’re giving organisations across the country clear and simple advice, backed up by the most user-friendly and effective technology available,” he said. To give businesses even more freedom, customers are not tied into minimum length contracts and are billed by the hour for however much virtual power they choose to use.