Network operator Virtual1 has reported a significant rise in demand for its high capacity network services. The news comes just four months after Virtual1 standardised its 1Gb connectivity services and launched its 10Gb capability to the Channel.
But Managing Director Tom O’Hagan has surprising views on the reasons behind the growth. He commented “Contrary to popular belief, it’s not being driven by increased Internet usage – the reality is that we’re seeing only low level growth in that type of traffic. In fact, the majority of our gig circuit sales are being used by customers to create their own private clouds and use the capacity to run applications – in particular SiP.”
He also credits the increasing availability of Ethernet as a key role in the trend. “Clearly demand for this level of capacity has been common in London for some time – in the past we have typically delivered either London to London or Europe to London. However the growth in demand we are seeing has been driven by sites outside of London and the South East expecting access to the same levels of speed and capacity. And because Ethernet access is now widely available even in remote areas, there is no reason why this can’t be delivered.
“I believe this growth signifies the long anticipated start of the migration towards Gig circuits as standard, and that we will see this demand continue in 2012 as more businesses begin to deploy private clouds. And it’s good news for the Channel, because both trends will provide new opportunities for resellers to support and re-engage with their customers.”