'We act as a bandwidth trading desk unlike other VPN SPs'

Virtela Communications is a global VPN services and solutions provider and is
currently setting up their second network operations center (NOC) in Mumbai.
Excerpts from an interview with Vab Goel, chairman and CEO, Virtela
Communications.

What is the nature of Virtela’s business model?

Our business model is unique from other VPN service providers. Since we lease
backbone capacity rather than building own infrastructure, we can offer VPN
services at half of what it costs a company to run its own VPN or use a managed
corporate frame relay service. We therefore act more as a bandwidth trading
desk, providing on-demand supply to the client telcos.

What are the advantages of Virtela’s business model?

Leveraging our Internet Protocol Service Fabric (IPSFSM), we enable IT
managers to deploy business applications over a private IP network to
substantially reduce capital requirements and monthly recurring costs. Virtela’s
complete VPN solution allows companies to migrate multiple networks onto one
scalable platform, backed by network and application service level agreements (SLAs)
to ensure the most reliable private networking environment. Since we do not own
infrastructure, our services come at nearly half the cost of other VPN service
providers–most of our core VPN service for each site costs $300 to $1,500 per
month, including local-loop charges.

How does Virtela’s NOC in Mumbai address the need of enterprise
customers like call centers? What is your track record in India?

Our second NOC in Mumbai addresses the networking needs of call centers by
delivering the most cost-effective approach to building private networks using
IP-VPNs. Besides this, we also offer access, carrier, and equipment vendor
independence as well as responsiveness to complex and changing customer
requirements. Lastly, we have global reach as well as follow stringent network
and application SLAs. Our Mumbai NOC already services 10 customers including
Pearson Education, Penguin, Xtreme Networks, Documentum, Deutsche Bank as well
as Beacon Global Services. For our latest client Beacon, we have created a voice
over IP VPN service between its corporate headquarters call center in
Poughkeepsie, New York and call center in Hyderabad. IBM Global Services
functions as our reseller in India.

What would be the necessity for Virtela in India when telcos like VSNL and
BSNL already offer VPN services?

Companies such as VSNL and BSNL are already offering IP-VPN services as well
as MPLS-based IP VPN services. However, this move may be self-defeating. Telecom
carriers and operators all around the world are shelving their plans for VPNs as
the VPN market is eating into their own revenues generated by frame relay and
IPLC services. The condition here, in India, will be no different.

Rajneesh De