Sticker Shock on Colocation Price Hikes

Analsysts are noting customer "sticker shock" about price hikes in colocation contract renewals.

Rich Miller

October 26, 2007

1 Min Read
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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

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