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Peering within Exchange

Exchanges and Co-location Providers

Merkato Application for Neutral Co-location and Exchange Providers


Today’s Business Opportunity
Neutral co-location and exchange providers are in a unique position to offer compelling new services, and capitalize on their existing assets: a neutral environment that is a meeting ground for service providers and IP bandwidth buyers.   Providing real-time IP bandwidth on demand is a natural outgrowth of the co-location and exchanges’ primary business: ensuring cross-connect services.  This new market opportunity enhances the core offerings of rack space, cross-connect services and “hands and eyes” services.  It ensures that every party benefits from optimal market pricing, while delivering much higher margins than the core service offerings.

It’s a dramatically new way to manage bandwidth for both buyers and sellers.  By being first with this new approach, neutral co-location and exchange providers can cement customer loyalty, offer value-added services to their customers and expand their market reach.

InvisibleHand Networks Can Help
With InvisibleHand you can maintain your neutrality and:

  • Introduce a real-time and dynamic marketplace for bandwidth purchase and sale
  • Enable dynamic, granular transactions of IP capacity between participating customers
  • Create a competitive advantage by creating “stickiness” for existing customers and by attracting new customers
  • Increase revenue per square foot by adding a highly valued service

InvisibleHand’s Merkato ™ is a fully automated software platform that allows you to generate new revenue by creating a value-added service that dynamically prices, sells and allocates IP capacity in real-time.  For the first time, IP transactions become a fresh source of revenue – augmenting fees from cross-connect and connection services.

Merkato, when used in a neutral co-location facility, allows service providers to price IP transit transactions with their ISP customers.  It allows them to price access to their networks for their enterprise, ISP and content provider customers.  And it establishes the means to make excess capacity available to a wider range of potential buyers, while at the same time, maintaining the co-location/exchange's neutrality.

How It Works
With Merkato, neutral co-location and exchange providers can offer a dynamic marketplace, allowing multiple IP capacity sellers to price bandwidth based on market demand and sell previously unused excess capacity. 

At the same time, capacity buyers can purchase bandwidth on demand, in any amount, with guaranteed allocation.  Costly fixed term and 95th percentile  contracts, increasingly a source of customer irritation, are no longer necessary.

Merkato optimizes market-based pricing.  Sellers can manage their bandwidth pricing to take advantage of customers’ willingness to pay, and buyers can buy the capacity they need, when they need it.  A combination of reservation and spot markets meet diverse customer needs, and new sales occur at 5-minute intervals.

With Merkato, service providers have seen an increase in revenues by 45% and see a five-fold improvement in gross margins on bandwidth sold.  At the same time, buyers can expect to see a 30% reduction in their overall bandwidth costs.  Exchange and co-location providers who enable a dynamic demand-based marketplace create a competitive advantage increasing revenue and retaining and expanding their customer base.

Our Commitment to You
InvisibleHand Networks is committed to helping you provide solutions to your customers, while at the same time, generating new revenues and maintaining neutrality.   It’s a win-win solution.
InvisibleHand’s solutions suit the unique needs of IP Network Service Providers, Neutral Co-location & Exchange Providers and Hosting Providers.  We offer both annual licenses and transaction-based models, and 24-hour customer support.

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