Madge Networks used to be synonymous with token ring and then with video conferencing. But this product-centric image is about to change as the number two token ring vendor prepares its foray into IP-focused managed network services market with the Madge Networks Services (MNS) division.
According to Peter Turvey, GM of Madge Networks South Africa, the company is shifting its focus from the declining token ring market to the fast-growing IP services market, offering data centre, Web hosting and network outsourcing services.
At present, the MNS division is very much Europe-centric, says Turvey, with most of the business coming from the UK. But MNS got a jumpstart in February 1999, when Madge acquired GAINS International, a tier-two carrier providing managed voice and data services for mission-critical applications. "It would have taken us five years to achieve what we did with the acquisition of GAINS," notes Turvey.
MNS now has more than 70 points of presence in 35 countries, with data centres in five cities in the UK. The US presence is poor at the moment, but Madge plans to set up centres in three US cities by the end of this year and three more by the end of next year.
"This will put us in the same league as BT and MCI Worldcom," says Turvey.
In SA, Madge is preparing to kick off the service early next year. Turvey says MNS will have no competition locally. "Most other network service providers are either US-centric or they don`t go outside SA. We are Europe-centric, but we also have points of presence globally."
Turvey says Madge anticipates a further loosening of the existing Telkom controls and
expects a significant demand for mission-critical connectivity.
MNS will target large, global players, or local companies with offshore operations. "We`ll offer them links to Europe and the UK, with big, fat pipes into the US and south-east Asia," he says.
The promise of much needed fat pipes is due to Madge`s worldwide agreement with UUNET. But what other differentiating factors is Madge betting on as a new network service provider? "We can do it cheaper, we can give companies a complete communications solution on a single bill [rather than having to manage several service providers], and we can provide a better service," says a confident Turvey.
Just how does Madge intend to achieve this top-quality, round-the-clock service? "By piggy-backing on our global agreements, such as the ones with BT and UUNET," he says.
MNS is backed by Madge`sglobal network, Madge.net. The aim is to offer a full suite of vendor-independent, which means the company will support any networking technology, including that of traditional arch-rivals, Nortel Networks and Cisco.
Turvey, who is currently based in New Jersey, says his initial talks locally involve major players in the financial services sector - an industry where Madge has traditionally had a strong customer base.
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