Merkato benefits both buyers and sellers of IP capacity.
Sellers can set up their marketplaces to better manage their network capacity by shifting traffic from the peak to the off-peak via price incentives. For example, price-sensitive customers have an incentive to move their traffic to the off-peak to take advantage of lower prices. At the same time, less price-sensitive customers who want guaranteed bandwidth when they need it are willing to pay a higher price to get it.
By shifting traffic from the peak to the off-peak, service providers can increase network efficiencies and optimize overall utilization of the network; resulting in lower operating costs, increased revenue on existing infrastructure and a new service, dynamic pricing, their customers will benefit which creates a competitive advantage. With Merkato, service providers can increase revenues by 45% and will see a five-fold improvement in gross margins on bandwidth.
Buyers also benefit using Merkato. Buyers are able to purchase bandwidth on an “as-needed” basis, in as little as 5 minute increments. With Merkato, buyers don’t need to enter into long-term or fixed contracts.
By being able to buy on demand, buyers are better able to manage variable and bursty needs and are able to reduce overall bandwidth costs by 30% on average.
For more information about Merkato and our patented algorithms, visit our Publication page or contact us.
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