March 28, 2001, 4:19 PM — Some Exodus Communications data center customers will soon have easy access to metropolitan Ethernet services courtesy of an agreement reached last week between Exodus and metropolitan Ethernet provider Yipes Communications.
Under the agreement, Exodus will begin rolling out and reselling Yipes' service in many of its data centers. The first centers to be connected will be those in Boston, Chicago and Silicon Valley.
Yipes offers businesses bandwidth on demand in 1M bit/sec increments. For businesses to take advantage of the Yipes-Exodus service, they would need to make sure their local Exodus data centers were hooked up to the Yipes service, and they would need to get a Yipes connection to their business sites.
The reseller agreement makes sense for Exodus and Yipes, says Rosemary Cochran, an analyst with research firm Vertical Systems Group.
"It's a logical extension for Exodus customers given the types of applications they're hosting," she says. "Yipes is looking for customers like this who require a lot of bandwidth."
So far, Cochran says, the demand for metropolitan Ethernet services has not been overwhelming.
"Only a subset of customers are real candidates for those services," she says. "The issue is these networks are only in very high density areas and if all your locations aren't in high-density areas, then the metro Ethernet doesn't help much."
Yipes operates in 20 U.S. markets.
"When you think of the richness of the content flowing out of the Exodus data centers, there's a really good opportunity here," says Ron Young, Yipes co-founder and chief marketing officer.
Application service providers (ASP) are one example of Exodus customers that could take advantage of Yipes' services, Young says. ASPs often need to set up high-bandwidth connections so customers can access their hosted offerings, and Yipes could provide an alternative to traditional carrier services.