Does your colocation pricing model make sense?

If your company is considering outsourcing your data center facilities, you’re probably looking at multiple colocation providers as candidates.

Do the colocation providers’ pricing models make sense? Is it possible to find an incremental pay-as-you grow model for your space, power and cooling requirements?

Here are a few key elements to consider as you investigate your alternatives.

How is your private colocation space allocated?

Many companies are opting for private cages and suites in colocation facilities. Does the colocation provider (colo) allow you to purchase extra space for growth? What is the cost of that extra space? How much extra space can you purchase?

How is the cooling factored in to the pricing model?

Cooling is a close second to power when it comes to data center uptime. How are you billed for cooling? Are extra cooling costs billed incrementally? How does the colo keep your dense racks cooled? Do you pay a premium for rack density?

How is access to the telecom carriers “taxed?”
How many telecom carriers are available in the colo? Are you billed extra monthly fees for the privilege of connecting to them? Does the pricing model favor buying the colo’s bandwidth?

How is power billed?
Are you billed for power based on usage, or are you billed on circuit size? What is the cost of incremental power increases?

How many line items are on your invoice?
Colocation deliverables are fairly simple:

  • sturdy building
  • secure floor space
  • power
  • cooling
  • security
  • access to telecom

How complex is your monthly billing? Does the provider nickel and dime you on every invoice?

The good news is that you can find colocation providers that have sensible data center pricing models.

Alex Carroll

Alex Carroll

Managing Member at Lifeline Data Centers
Alex, co-owner, is responsible for all real estate, construction and mission critical facilities: hardened buildings, power systems, cooling systems, fire suppression, and environmentals. Alex also manages relationships with the telecommunications providers and has an extensive background in IT infrastructure support, database administration and software design and development. Alex architected Lifeline’s proprietary GRCA system and is hands-on every day in the data center.