Five Questions for Negotiating with Colocation Providers

Feb. 13, 2017
These 5 questions can help you keep colocation costs in check when negotiating with a colocation provider.

40% of enterprise IT managers are paying more for colocation contracts than they had initially planned or expected, according to the Uptime 2016 Survey. One important way to keep costs in check is to pay close attention to the deal terms when negotiating with a colocation provider, and to parse out the impacts of those terms over the entire life of the contract.    Here are 5 questions to help you do exactly that.

Question #1: How does your pricing model help me align my data center with my business?

Question #2: Do you charge me a fixed $ per kw infrastructure fee? What’s the ramp schedule?

Question #3: Is PUE used to determine my monthly energy costs? What is the pue compared to industry average?

Question #4: What rent escalation and power escalation is built into the  contract?

Question #5: What are the renewal terms at the end of the  contract?

Colocation costs are so often higher than expected because of a lack of transparency around how costs are actually determined, and a lack of flexibility to tie the data center capacity a customer  is paying for to the capacity they actually need. That lack of transparency and inflexibility constrain customers’ ability to move fast. Yet moving fast is exactly what today’s economy demands. So the right data center can help IT leaders thrive, responding to changes in the business and adjusting to changes in technology. You deserve a colocation provider that’s as dynamic as your  business.

To Learn More about keeping Colocation Providers costs in check download this white paper.