An alliance between a leading Australian ISP and a local network solutions provider will attempt to break the current impasse to electronic commerce in Australia.
KNX and connect.com have joined forces to deliver cheap and easy VPN (virtual private networking) solutions in Australia to facilitate development of online trading models, according to officials from both companies.
Virtual private networking refers to using the Internet to develop a communications infrastructure for use within a company as well as for communicating with other businesses. Because the Internet is a shared infrastructure, businesses can develop sophisticated networks for very little cost.
KNX managing director Charles Greatrex claimed that the deal with connect.com is the first of its kind in Australia, and is a sign that barriers to e-commerce in Australia, especially for company's with slim IT budgets, are beginning to buckle.
"It is an opportunity to fight back against telco costs," Greatrex said.
He said that the agreement between the two companies signals the dawn of a new pattern of alliances within the communications industries, aimed at undermining carriers' existing business practises.
Officials from both companies said that the new VPN services would initially be taken up by companies looking to establish cheap connections between offices, develop extranets and intranets.
"This has the potential to spur distribution companies to take the next step in actually using the Internet to create more profitable and efficient business relationships," Greatrex said.