Does Your Provider Offer Competitive Data Center Colocation Pricing?

To evaluate pricing for alternative data center colocation solutions, companies need to determine the added value. In other words, how much are they benefitting from the services provided? Is their business operating more efficiently? Is the cost for data center colocation much lower than what the company would pay for an in-house data center operation?

Today’s data center colocation solutions offer more than just space and are based on the value they provide.

The factors influencing a competitive price may include the following:

  • Power usually represents the largest cost in a data center. Therefore, the cost of power will affect pricing. The cost a service provider pays for power will be affected by the source of the power, the regulatory environment, the facility size and the rate concessions, if any, offered by the utility.
  • Real estate, construction and labor costs will be factored into the final pricing model. Because these costs vary from one region to another, businesses operating in different parts of the countries will likely be paying different amounts for data center colocation.
  • Risk mitigation also plays a role in pricing. The extent to which providers must implement special building techniques and operating technologies to protect the facility will affect price.
  • Like pricing in other industries, supply and demand within each market will determine price. These market dynamics will change over time. For example, as capacity increases within a market, pricing among service providers can go down to help consume the excess inventory. New entrants into markets might also create pricing pressure. To gain market share, these new providers may initially lower prices.
  • The higher the redundancy level required by a company will typically lead to higher prices. If you require high availability backed by a service level agreement (SLA), you can expect to pay more than another company with less stringent redundancy requirements.

Data center colocation pricing is influenced by many factors, including those listed above. However, the actual price charged by a service provider involves a complex analysis and will be based on the value provided.

FairPoint’s data centers provide organizations with network connectivity and rack space in physically secure, reliable locations. Businesses can use this space as primary or secondary data center sites. In addition, data center colocation space can also be employed as an essential part of a comprehensive disaster recovery strategy. FairPoint’s data centers are strictly controlled environments with essential power, cooling, connectivity and security features – including continuous video monitoring and keycard access at ingress points.

For data center colocation services that address your remote storage, off-site IT and disaster recovery requirements, call FairPoint Data Center Services (1.866.984.4001) or visit www.fairpoint.com/businessclassdatacenter.

FairPoint Communications

President
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