• Sticker Shock on Colocation Price Hikes

    October 26th, 2007 : Rich Miller

    With strong demand and a shortage of quality data center space in some markets, colocation prices have been rising for some time. Over the past several years, major colo providers have been repricing contracts to market rates upon renewal. This has come as a surprise to customers, according to a new report from Forrester analyst Bill Martorelli (link via SearchCIO). Here’s the executive summary:

    Longtime collocation hosting clients with expiring contracts are finding significantly higher prices in an environment where power requirements can trump space requirements

tom

Posted October 27th, 2007

Hi Rich,

Interesting topic you posted about.

Any info on where the rates are ultimately settling? Since all datacenters are different as it relates to power density, translating to the utility(in the economic sense) the customer realizes with the various vendors I’m curious if the folks you’ve interviewed are comparing rack prices to rack prices or if they’re comparing total costs per kw consumed. Comparing rack prices to rack prices is somewhat deceiving yet it still seems to be very prevalent with customers.

thanks,
tom

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