NBN “detrimental”, ended infrastructure upgrades by telcos: BitCloud

Cloud backup provider sees the lack of widely available high speed Internet as holding back the Cloud in Australia

New ground is contantly broken in the endless debate over of the National Broadband Network

New ground is contantly broken in the endless debate over of the National Broadband Network

The NBN has so far been a “very detrimental” development for local Cloud provider, BitCloud, according to CEO, Bennet Oprysa, who bases his opinion on seeing telcos end the development of their own infrastructure in the wake of the NBN being announced.

To illustrate his point, Oprysa highlights how AAPT, which the Cloud backup vendor uses as one of our providers, was continually rolling out and adding new exchanges to their Internet infrastructure.

“However, as soon as the NBN gained momentum all of that stopped,” he said.

“They are not adding new capacity anymore but waiting to be brought out by the NBN.”

For Oprysa, this has been problematic because areas that would potentially have had access to high speed Internet do not.

“Hopefully things will move on and we’ll all get the NBN at some point,” he said.

For BitCloud, more customers would have the motivation to sign up for the provider’s Cloud services if they were connected to an Internet that is “faster, cheaper and available at all of their locations.”

For that reason, the one hurdle Oprysa sees in relation to the Cloud is related to the price of connectivity in Australia.

“You can put your stuff in the Cloud, but the best way to use the Cloud is if you have a good, high speed connection,” he said.

While Oprysa admits that the situation is “improving slightly,” but adds that it is by “not much.”

“In areas where there is good connectivity available, it is often serviced by Telstra or Optus, and their pricing is a bit high and not really competitive,” he said.

Past challenges

Up until recently, Oprysa said there were a number of issues that held back Cloud backup in Australia.

There were security issues, lack of proven local providers, various costs, as well as IT departments worried about change.

However, Oprysa has seen a lot of those issues change or disappear over the last four or five years.

“IT departments have also had the opportunity to give a Cloud offering a try and become more comfortable with it,” he said.

More commonly, a business has decided to adopt the Cloud after a competitor or somebody they know has already been on the Cloud.

“We’re no longer seeing the same amount of repulsion or fear that was present in the earlier years, and that’s a significant change,” he said.

Patrick Budmar covers consumer and enterprise technology breaking news for IDG Communications. Follow Patrick on Twitter at @patrick_budmar.

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3 Comments

Steven

1

Seriously? The NBN will allow uploads of up to 40mbps which is perfect for cloud computing. Copper on the other hand works up to 1mbps which is not good enough for me. This is nothing more than a beat up.

gnome

2

Yep, it sounds like a self-serving squeal from start to finish.

So how come this set of PR assertions didn't get checked for accuracy before they were published as a 'news' item?

Tom Brown

3

The article in itself maybe largely correct though some projects notably by Telstra in Brisbane were not effected by the NBN. The NBN will be a windfall to cloud providers so why is Mr Oprysa making a negative comment, or was he? Patrick is there half a truth here?

This also relates to the issue of cherry picking.

Patrick, do AAPT have any exchanges? I mean like those Telstra provide or do they only have private business hubs in CBD's and DSlams etc inTelstra exchanges.

AAPT (Who I think were wanting to get out of their sliding retail business anyhow) and others are faced with the reality that business are now aware that soon they will not be at the mercy, primarily of Telstra and the companies who could leverage commercial solutions. These solutions were both very expensive and very dependant on the location.

With the NBN going past the door they will be able to connect to commercial grade lines and it will be hugely cheaper. This is why it is important for the NBN to provide fibre to the premise.

P.S. bitclouds testimonial from Benedict industries may not be as good as it looks.

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