Joel Deuterman started his business by building PCs for customers from his house on East Sixth Street. Today, he’s focused on a different kind of building – building up his customer base, and building out a fiber optic network throughoutErie County.
Deuterman is CEO of Velocity Network (VNET), a Millcreek Township company that provides internet, technical support and IT consulting services. Much has changed since he founded the company formerly known as SOFTEK. In 1996, he began Velocity.Net, which offered dialup internet access in 1996. In those days, he recalls, the internet was “like magic.”
“You hit a button and suddenly had the world available to you,” he says.
At one point, they were building 40 or 50 PCs a day, and Deuterman himself would deliver computers to customers’ homes on Saturdays. It was in the name of good customer service – he would connect the cords and set up the modem, so the customer would be ready to go, and be happy with the purchase.
Today, that commitment to good customer service remains, though Velocity Network focuses on providing knowledgeable, responsive and comprehensive tech support instead of building PCs. And it extends to the company’s development of a fiber optic network, now nearing 500 miles of optical fiber throughout Erie County.
The company has leveraged its services into steady growth – from three employees in 1993 to more than 63 now, and with projections calling for more than 100 by 2022.
That growth has led Deuterman to focus on still another type of building – rebuilding. Velocity Network purchased the former Rothrock building in downtown Erie and is in the process of renovating it.
Ultimately, Velocity Network will be headquartered in the heart of downtown Erie and will be a core partner in Erie’s Innovation District – a collaboration that signals an emerging effort to create a vibrant hub in the city.
It makes sense that VNETwould be a key partner in the Innovation District – after all, change is nothing new to a technology company.
“We’ve had to reinvent ourselves several times,” Deuterman says. “That’s the nature of the industry.”
That experience will be useful as Erie looks to reinvent itself as well.
About Velocity Network: VNET serves commercial customers with managed IT services and fiber optic internet services and is now beginning to service the residential market with VNET Fiber, their fiber to the home (FttH) service. The company sees fiber optics as the best option for high-speed internet service both now and into the future, and is working diligently to get all areas around the region connected. That’s not just a convenience for customers – it’s also a boost to economic development in Erie County, says Matt Wiertel, Velocity Network’s director of sales and marketing. The availability of broadband is essential to attracting businesses looking to relocate to any region, and VNET is providing that network with its fiber, he says.
Why Erie County: Deuterman has found a successful niche in Erie County to build and grow his company, and he has appreciated the relationships that he has been able to form in the community. That includes finding funding partners for the purchase of the Rothrock building – including a $1 million loan from the Erie County Redevelopment Authority, another $1 million loan from the City of Erie, and a $2.25 million PIDA loan from the state. Looking ahead, Deuterman sees a time when businesses in Erie County will be working together to attract and retain workers and create a more collaborative culture across industries.
Challenges of Erie County: Education, in several forms, can be a challenge. For one, the company has been working to inform the public and municipal officials about the benefits that fiber optics will bring to the community. Internally, the company must focus on ongoing training to ensure that their support staff is keeping up with rapidly changing technology, and looking ahead for future problems that customers might face. And, in turn, it means educating the public about technology and potential security threats, like phishing attempts. “A lot of it is educating people to not click on that link,”says Brad Wiertel, director of operations. “You can’t stay ahead of (hackers) – you just have to look at the patterns” and take advantage of security resources to thwart the bad actors on the internet.
Fun fact: The company launched its Velocity.Net dialup internet service in 1996 at a rate of $9.95 per month. That was half the cost of the national average at the time. Today, VNET Fiber offers speeds up to 1 Gigabit per second – that’s approximately 17,000 times faster than dialup!