Alliance of the neutrals

Teraco Data Environments has six of the country`s major telecommunications operators connecting with its Cape Town and Johannesburg data centres, almost completing its connection strategy, says CEO Lex van Wyk.

Recently, Teraco completed an agreement with Dark Fibre Africa (DFA), which will join Telkom, Fastnet, Vodacom Business and T-Systems, leaving only MTN Business Networks and Internet Solutions as the last two major carriers still to connect, he notes.

Van Wyk says the connection agreements mean the carriers rent space and facilities from Teraco to offer services to their various customers.

“The model is based on four layers. The first is the actual structure of the data centre that includes internal LAN. The second layer is that of access and this includes the telecommunications operators, and that is almost complete. The third is Internet connectivity and this is where the ISPs come in to play, such as WebAfrica. Lastly, the fourth layer is application service providers and we are busy negotiating there.”

Vendor-neutral data centres are new to the country, with most data centres being operated directly by the telecommunications operators or ISPs.

Teraco is modelled after similar European and US companies that allow corporations and other organisations to have their data stored at a neutral third-party facility, and then select what vendors to use to provide telecommunications and other services.

The agreement with DFA sees it installing fibre links directly into the Teraco data centre`s “meet me” room, allowing connectivity for Teraco`s other customers to DFA`s national infrastructure.

As both companies subscribe to a carrier-neutral model, customers inside Teraco`s data centre can now connect directly to any other customer that has linked in to any part of DFA`s network.

“The match of Teraco`s vendor-neutral data centre business model with DFA`s competition-neutral, open access infrastructure presented a fantastic business opportunity for both of our companies. It is the first fruits of the slow deregulation of telecoms in our country that will finally make SA a globally competitive place to do business,” says Gustav Smit, DFA chief executive.

Van Wyk says this partnership perfectly underpins Teraco`s philosophy of unrestricted choice of network and service provider, allowing customers to manage traffic to get better value or performance, while creating an open market for partnerships.

“This partnership clearly shows how a focused, neutral operation, that does not lock customers into a choice of carrier, service provider or other services, can work with complementary providers to give South African businesses choice, flexibility and maximum value for their money.”

Related stories: Teraco closes Series-B financing round Teraco appoints data centre `top gun` DFA seeks full telecoms licence