Telx Launches Ethernet Exchange

connectivity

Interconnection and colocation specialist Telx today announced the debut of the Telx Ethernet Exchange, a new solution that helps service providers and enterprises to seamlessly exchange data traffic over Ethernet networks.

Telx also announced a partnership with Neutral Tandem, which is in the process of deploying its own Ethernet exchange service. By joining forces, Telx and Neutral Tandem may be able to more effectively challenge Equinix and CENX, the two early leaders in the Ethernet Exchange market.

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The Telx Ethernet Exchange, which was announced in conjunction with today's Telx Customer Business eXchange, is enabled by Cisco router and software management technology. It will provide enterprise and cloud/SaaS providers greater network choice and faster interconnections, allowing them to connect their Ethernet networks without setting up individual interconnection agreements or building out local fiber networks.

"The Telx Ethernet Exchange is a direct response to the needs within our Global Marketplace of customers, who have been limited to offering and supporting Ethernet services in markets where they have services deployed," said Eric Shepcaro, CEO of Telx.

Ethernet exchanges are seen as an important enabler of the convergence between global communications networks as the growth data traffic begins to outpace voice traffic.

Strong Growth Seen for Ethernet Services
"Business Ethernet is the fastest growing strategic data offering for service providers, growing at a compound rate of 24 percent per year over the next five years," said Rosemary Cochran, principal, Vertical Systems Group. "The rapid growth of mobile backhaul, video, virtualization and other mission-critical applications is fueling the demand for scalable, high-bandwidth and low-latency Ethernet connectivity from metro areas to broader geographies. Telx’s Ethernet Exchange service is well-positioned to help expand the market."

Telx said its Ethernet Exchange will become available in seven of its data centers over the next nine months with initial customers being part of a charter program in the third quarter of 2010. Telx customers will also be able to access Neutral Tandem’s planned 14 Ethernet exchange locations.

Neutral Tandem and Telx’s Ethernet Exchange offerings will be built using the same unified exchange fabric. Both companies are using Cisco's ASR 9000 Series Aggregation Services Routers.

"We believe that our planned relationship with Telx will enable us to create the largest Ethernet Exchange platform in the nation," said Rian Wren, president and chief executive officer, Neutral Tandem. "Neutral Tandem’s proven track record with interconnecting carriers across the U.S., combined with Telx’s strategic data center locations, will form the basis for a winning combination."