New company intabank brings back bandwidth trading
Energy company Enron pioneered the idea of internet bandwidth trading - the buying and selling of spare communications capacity - back in 2000.
Intabank allows companies needing additional, short-term connectivity to purchase it from others with excess capacity, rather than buying from service providers that normally require a long-term commitment. It is the brainchild of chief executive Andrew Sjoquist, and sales and marketing director David McGrath, co-founders of Australian cloud provider ASE.
The company will initially offer connectivity to and from the data centres used by ASE in Australia. It has facilities in Sydney, Melbourne, Perth, Singapore, Shanghai, Hong Kong, Tokyo, Frankfurt, London, Paris, New Jersey and San Jose, and says it plans to add six data centres in coming months.
Non-ASE customers can access the bandwidth by buying a connection to one of the company's data centres from a local service provider.
Mr Sjoquist said the company was born from requests by customers wanting to exploit spare communications capacity, or gain access to capacity for peak periods without being locked into long-term contracts. He said customers were achieving significant savings.
"The test companies ... have been seeing prices that are at discounts of 50-80 per cent of what they would normally pay, and the sellers are recouping 10-15 per cent of the cost of their capacity."
Mr Sjoquist said companies could buy connectivity according to the file size they wanted to send, or the bandwidth. "You can specify the size of the file and the price you want to pay and we will see what speed we can give you. Or you specify the speed you want and the file size, and we will quote you a price."
Read the full story at theage.com.au/it-pro