Impact on Singapore's data centre industry
According to Ho, DCNet lowers the entry barrier into the Singapore market for cloud-based service providers by enabling them to connect to Singapore data centres easily regardless of their location, be it in Hong Kong, Japan or the United States.
He added that non-Asian providers looking to partake in the growing Asia-based opportunities could expand their presence in Singapore with minimal commitment and flexible bandwidth, ultimately bringing more companies into the market.
DCNET also adds value to the "connected" data centres by offering them a rich ecosystem to interconnect financial market players, business partners, content providers, carriers and Internet service providers to grow their own business.
Utilising StarHub's robust metropolitan fiber network, DCNet is now currently available in ten data centres in Singapore.
KVH said that is planning to expand by setting up additional data centres in this market in the coming months. Additionally, the company intends to roll out a 100Gbps service next year.
"Due to a combination of higher-speed business data services, mobile applications and Internet HD video traffic, we are seeing that both global carriers and content providers are under immense pressure to lower their cost per bit transported.
"To support this growth, these service providers need to deploy multiple 10G equipment. There is a tipping point where the increase in deployment costs and complexity of having multiple 10G outweigh the gains and it makes economic sense to switch to 100G connectivity," commented Ho.
Commenting more on KVH's future plans, Ho said that the company will continue to look at Singapore as its regional hub for business in Asia outside Japan, especially after its recent merger announcement with its sister company Colt Technology Services.
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