PAETEC expands cloud-based offerings, plans new data centers

Opinion
May 31, 20112 mins

PAETEC recently launched an expanded portfolio of cloud-based products and has announced plans to deploy new data centers coast-to-coast. The company plans to add 13 data centers coast-to-coast, adding to its existing set of seven centers, with 20 centers operational nationwide by the end of 2012. PAETEC’s new products and portfolio enhancements include Dedicated Server, Virtual Server, Managed Storage, and Hosted Exchange as cloud-based services.

Commenting in a statement on the announcement, Amy DeCarlo, principal analyst for Security And Data Center Services at Current Analysis said, “The industry-wide adoption of cloud computing is increasing at a rapid clip. We expect companies like PAETEC that have comprehensive cloud strategies to be well prepared to meet the rising demand of these types of network services.”

IN DEPTH: Enterprise cloud services: The agenda

Pointing to the advantages of each service in its announcement, PAETEC suggested that its Virtual Server services provide on-demand scalability to meet fluctuating business requirements along with geographically diverse presence for disaster recovery, while the Dedicated Server options help customers transition to cloud computing at their own pace without new infrastructure deployment. The company’s Managed Storage offer includes the option to purchase storage on demand and on a granular basis as required. The Hosted Exchange service provides a cloud-based Microsoft Exchange E-Mail server. PAETEC already offers a suite of IP, voice, data and Internet services, communications management software, network security solutions, CPE and managed services.

Our observations: Incumbents like AT&T and Verizon have been bringing enterprise-grade services “down-market” to the midtier and smaller business segments for some time, while cable companies are also targeting the small and medium enterprise (SME) market segment with more broadband, wideband and IP-communications options. Competitive carriers like PAETEC have been adding and upgrading network services at a variety of levels including faster connectivity, unified communications enhancements, and growing other cloud-based services. The winner with this ongoing trend is certain to be the SME business customer.