Virgin Media Business partners with Savvis to launch cloud service

Virgin Media Business (VMB) has launched a cloud offering in partnership with datacentre firm Savvis designed to help mid-sized companies tap the benefits of cloud computing without the complexity.

Savvis will offer dedicated virtual private datacentre access over VMB's fibre network which can be used on a pay-as-you-go basis that can be scaled as necessary.

VMB said that the offering dramatically alters the cloud market by allowing companies to trial the service for a few days or weeks before committing, and removes some of the barriers to cloud investment.

The offering is primarily aimed at mid-sized firms of 250 to 1,000 employees, but could also be used by smaller firms.

VMB managing director Mark Hegarty claimed at the launch in London that the combination of Savvis and Virgin assets could radically change the cloud market.

"The product capabilities [of Savvis] and network reach [of VMB] offers a really strong proposition that is flexible and secure and will help shake up the market," he said.

"Cloud is at a tipping point now and the technology of the network and the datacentre is sufficiently advanced for clear benefits to be delivered."

VMB has been trialling the product with some existing customers, and said that the service is available from today.

Customers can select different hardware components during the virtual private datacentre creation through a simple browser interface, and can choose Essential, Premium or Balanced service level agreements offering different levels of resilience.

Neil Cresswell, UK managing director of Savvis, added that the service uses the company's UK datacentres, thereby removing regulatory concerns about the location of data.

Ovum analyst David Molony agreed that the move is a major development in VMB's services strategy, and is a significant rival to others already on the market.

"It makes a big statement about VMB's intention to be a significant player in the UK business telecoms market, and will be a big challenge to BT and Cable & Wireless, both of which have already launched virtual datacentre services," he said.

"It's timely because the cloud services business is getting some momentum. Ovum surveys show that the proportion of enterprises trying out cloud-based network and IT services has increased from a third to nearly half in the past year."

Molony added that the partnership has been well thought out and offers benefits for both companies.

"The partnership is a good fit because VMB does none of the global VPN services that Savvis specialises in. VMB's service will be aimed at SME and local government customers it already serves and which Savvis doesn't," he said.

"Savvis extends its service reach into the UK market across a high-spec MPLS network it would have taken years to build for itself."