Tata Communications (Tata) has launched a low-latency network connecting major financial capitals in Asia (Singapore, Hong Kong, and Tokyo), the UK, and the US.
While it is not the first such network, and does not claim to be the fastest in the market, the scale of the multipoint Ethernet services based on provider backbone bridging (PBB) technology offers an attractive proposition to meet the growing demand for low latency beyond the traditional applications in the financial services industry.
It will also enable Tata to offer a greater range of SLAs for both enterprise and wholesale customers, and ultimately increase the utilization of its core cable systems.
Low latency is an increasing requirement
Rising complexity, the increased importance of specific mission-critical applications, and lower prices due to greater competition mean that the requirement for fast Ethernet services based on low-latency networks is increasingly coming from enterprises outside of the financial services industry.
Tata claims that some IT organizations and pharmaceutical companies are already demanding low latency. It is unsurprising that financial trading customers are not monopolizing the interest in these new services given the current conditions in the sector, and the possibility of opening previously untapped markets is interesting.
For many companies, consistency matters more than the inherent value of the high-speed network. These companies are increasingly running software applications that require low latency. As a result, Tata’s SLAs for its low-latency network include near-realtime latency guarantees, with latency measured every five minutes on a 24/7 basis.