Virgin Media Business Aims to Drive Data Centre Connectivity Sales with High Capacity Services

Event Summary

February 11, 2011 – Virgin Media Business improved its high capacity service range targeting the UK data centre connectivity market. The carrier now offers a single data centre connectivity platform that it claims reduces power and space requirements. The operator’s range of services offer speeds up to 10 Gbps and as low as 3 ms latency, plus resiliency options. Each interconnect can connect up to 8,000 users.

Quick Take

Analytical Summary

• Current Perspective: Positive on Virgin Media Business’ high speed connectivity announcement, because the company’s solution relies upon a single platform to serve multiple customers, instead of the more traditional method of deploying an individual network termination unit (NTU) per client, giving efficiencies. The result is reduced power requirements and space, and lower overall costs due to shared infrastructure.

• Vendor Importance: Moderate to Virgin Media Business, because the carrier was already offering high capacity service, but identified considerable potential growth as customers migrate to cloud environments, and therefore needed to refresh its offering to make it more compelling. The company needs to reduce cluttering in data centres and power consumption to remain competitive in this space and is also adhering to its stated ‘Big Red internet’ mantra, which centres on making the most of owning the UK’s largest fibre network.

• Market Impact: Low on the UK data centre connectivity market, because Virgin Media Business’ high capacity services are not radically different from products already available in the market. The market threat on competitors is for the same reasons as prior to this announcement, namely strong national network reach and high performance next-generation platforms. The options that the carrier offers are also more or less the same with point-to-point, backhaul and local tails, and VPN, on the menu. Competitors can respond with product development and innovation aimed at reducing data centre connectivity power and space requirements.

CLIENTS ONLY

Current Perspective

| Client access - Full report in Data Center Services | More information

Top

Top