cross connects and their pound of flesh

Exactly. Not that I don't like free cross connects (they're the bees knees,
in fact), but at the end of the day, an existing colo operator is not going
to go from paid->free cross connects without extracting that pound of flesh
(read: sweet sweet 100% pure margin) from somewhere else. Your space and/or
power prices will go up to backfill that lost profit. That said, those of
us that buy a decent amount of colo prefer to trade in the value of the
asset leased/purchased - space & power - as we have real world indexes to
tie the underlying cost to for negotiation purposes.

And as colo operators get freaked out over margin compression on the
impending 10->100G conversion (which is happening exponentially faster than
100->1G & 1G->10G) they'll need to move those levers of spend around


I think that's where the value in a distributed IX comes into play. The more nimble networks can move to different facilities while still maintaining the connectivity. Enough of that happens and pricing pressure comes into play in other parts of the market (space and cross connects).

For those of you that operate in many markets, do you see any parallels where one operator has (or had) a hold on the market (Chicago Equinix and Miami Terremark for instance) compared to more diversified markets like NYC (due to a variety of IXes) or Seattle (due to SIX)?