"At the start the main users were generally ISPs who needed to create connections between each other, e.g ISP X doesn't have a presence in a certain city so they contract with ISP Y to connect that user and present the users connection over MegaPort back to ISP X.Before Megaport the two ISPs would need to figure out which datacenters they both had equipment in and arrange someone to connect a cable between their two racks. Using Megaport they can avoid having to build physical interconnects between each other. (Other methods such as internet exchanges also existed but Megaport automated and generalized it)"
Some people don't realise how expensive this can be, we wanted a connection between two data centres at work and they wanted $200k per year plus a minimum of a 2 year contract.
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