The current downturn in the economy and the decline of the dot-coms represent significant challenges for hosting businesses. While many were praised for their rapid build-outs and increased square footage, those providers today are facing high debt loads and falling stock prices. Revenue from selling rack or disk space alone will not sustain the industry.
Hosting providers need to find new ways to generate revenue and create value-added services to attract and keep customers. Now there’s a new high-margin business opportunity: providing a more liquid and flexible bandwidth service.
InvisibleHand Networks Can Help With InvisibleHand you can:
- Give your customers the flexibility to buy bandwidth on demand
- Maximize bandwidth utilization, increasing revenues
- Provide your customers with a dynamic service with guaranteed bandwidth allocations and an average cost savings of 30% over 95th percentile pricing
InvisibleHand’s Merkato ™ is a fully automated software platform that enables you to create a dynamic marketplace to buy, sell and allocate bandwidth. This new ability to instantly respond to market demand creates a competitive advantage and adds differentiated service offerings to your existing suite of services.
Dynamic pricing: With Merkato, you can dynamically price and sell IP capacity based on actual demand. This allows you to sell capacity more efficiently by extracting higher revenue per Mbps. You can use dynamic pricing as an incentive to shift demand patterns, resulting in idle capacity being bought by price sensitive users. At the same time, guaranteed bandwidth can command a higher willingness to pay for mission-critical applications.
In addition, your customers can dynamically purchase bandwidth based on their true needs, in as little as 5-minute increments and avoid buying bandwidth they won’t use. This real-time flexibility gives customers the granularity they want, and avoids the inefficiencies of current pricing methods such as 95th percentile pricing. Even better, Merkato lets you sell excess capacity at optimal, market-driven prices.
Current Fixed Pricing: The industry’s inflexible and inefficient pricing models do not allow you to capitalize on the growing demand for bandwidth. For example, with the current 95th percentile and fixed price per Mbps pricing, you are unable to capture your customers’ willingness to pay higher prices for guaranteed peak usage. At the same time, your customers want more flexibility and are unwilling to pay for 95% of their peak usage all the time. Instead of dynamic pricing based on demand that allows you to capture more revenue and your customers to buy only what they need, current pricing methods lock you and your customers into fixed monthly prices.
InvisibleHand Networks is committed to helping you provide solutions to your customers, and help you generate greater return on your current assets. Early installations indicate that Merkato’s win-win solution increases revenue by 45% and improves gross margins on bandwidth sold five-fold. Moreover, your customers see bandwidth costs drop an average of 30%.
InvisibleHand’s solutions suit the unique needs of IP Network Service Providers, Neutral Exchange & Co-location Providers and Hosting Providers. We offer both annual licenses and transaction-based models, and 24-hour customer support.