Case Studies

Building Global Networks at the Click of a Button

Singaporean hosting company HostSG is using Epsilon’s eCommerce solution to procure and manage network infrastructure online and in real-time 

HostSG is using the Epsilon Capacity Exchange (eCX) to expand its network capabilities with instant access to global network inventory, pricing and procurement. Primarily a hosting service provider, HostSG is able to use the eCX eCommerce platform to procure global networks for customers and offer a comprehensive set of infrastructure solutions.

This transforms what a hosting provider can be with little to no barriers to entering the market for network services. With the support of eCX, HostSG can offer customers access to network infrastructure via a single provider seamlessly. They can scale globally without managing multiple service provider relationships.eCX was specifically built to facilitate the buying and selling of international communications infrastructure online. It delivers real-time route inventory, pricing and trading as well as a capacity booking and reservation functions.eCommerce has changed nearly every business sector and eCX is helping new entrants access global communications infrastructure and deliver the integrated solutions their customers need. For HostSG this means delivering cohesive network and hosting solutions for customers using the most efficient means available.

THE CHALLENGE
HostSG is focused on the hosting market in Singapore but could see an opportunity to deliver network services to its customers. This would create customer stickiness, reduce churn and add a new revenue stream to their business. HostSG’s SMB and local enterprise customer base simply wanted a solution that would give them efficient access to global infrastructure. For the company offering an integrated solution would require going beyond their core business and building a global procurement team. They’d need to maintain relationships with global network operators and procure services for customers via traditional in-person meetings and sharing of pricing information over email. This would reduce time-to-market and be an ongoing challenge. Approaching the international telecoms market for the first time would require new resource, expertise and staff and ultimately reduce the margin in the long term. The challenge was to find an agile solution that would allow HostSG to add network services to their portfolio without adding complexity to their business or the relationship they have with customers. It needed a solution that could help them tap the opportunity and deliver these new capabilities to customers efficiently and at a price point that customers can appreciate.

THE SOLUTION
The fastest and most efficient way for HostSG to offer network services was to use eCX to procure and manage their network services online. Using the eCX portal, HostSG is able to compare pricing on routes around the world in real-time then book or reserve capacity on the routes it has selected. This allows them to simply click to connect its customers around the world and access networks without leaving their offices. If a customer in Singapore needs network connectivity in West Africa, HostSG can use eCX to select the route, compare pricing and execute a transaction. Before the buyer clicks to complete the transaction, the system has already performed a capacity check, enabling the deal to be completed in the shortest possible period of time. The network inventory is then shown as unavailable so that other buyers cannot try to purchase it. The eCX platform is powered by the Epsilon Global Network Exchange, which is a network of core optical switches located in over 65 points of presence (PoPs). Network operators are pre-connected and capacity is available for customers to purchase. HostSG no longer needs to participate in offline buying processes that can often lead to weeks of exchanging pricing information via email. They can move quickly to serve customer demand and access markets far beyond their core business and geographic location. It gives them new agility and capabilities with a familiar interface common to consumer eCommerce platforms.
PARTNER:
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eCX is fast and efficient way to deliver network services to our more than 35,000 customers. An eCommerce platform gives us instant global access and allows us to add new value to our customer relationships. Hosting and networks go together and eCX takes the barriers to entering this market away. Epsilon has delivered something that will change who can offer network services and expands the scope of content, hosting, data centre and cloud businesses.

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Kevin Foong

Chief Executive Officer at HostSG

BENEFITS
  • Time-to-Market - eCX gives users instant access to networks around the globe and allows them to purchase capacity at a click of a button

  • Global Reach  - There are no geographical limits for eCX users. They can procure services from operators anywhere in the world

  • Simplicity - eCX has been designed to be easy to use with a user experience model on consumer eCommerce platforms

  • Transparency Pricing is available to view, track and compare routes over time. Just like watching the performance of a stock, users can see fluctuations in route pricing

  • Cost-Efficiency - eCX offers users the ability to buy capacity without leaving the office, reducing the need for time and travel budgets

  • Intelligence - All the information users need for decision making is available on a single portal

eCommerce has created truly global markets for all kinds goods and services but has yet to influence communications infrastructure and capacity. The same operators and service providers whose infrastructure enables the digital economy have yet to use eCommerce to procure services and connect globally. The opportunity for communications services is too large and too important to overlook. eCommerce changes the potential of each service provider involved and removes barriers to their success.

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Jerzy Szlosarek

CEO at Epsilon

THE FUTURE
HostSG will benefit from the continued development of eCX as new features and functionalities are added to the platform. The platform has been designed to evolve and grow to meet the needs of a variety of user bases including hosting companies and data centre operators in addition to more traditional network service providers. In addition to using eCX, Epsilon has established a virtual point of presence (PoP) in Singapore for HostSG. The virtual PoP (ePoP) gives HostSG’s 35,000+ customers access to 600+ network operators and allows them to connect to 170 countries worldwide. Epsilon provides HostSG with colocation facilities in Singapore as well as fibre connectivity between Equinix and NTP data centres in the country. HostSG is also expanding its presence in the London, UK with support from Epsilon.