Is anyone else affected by a massive price increase for x-conns by
Telehouse Chelsea?
When we moved in a few years ago they were asking 150$, it changed to
200$ and now we are asked to pay 260$. That's 73% more. I don't think
inflation is that high in the United states.
I get the impression that they feel comfortable enough to abuse their
position. When we complained they simply said 'you may consider to
cancel the contract'.
Of course they don't provide any better service, in fact, the service
quality is commonly indirectly proportional to the price at most 'big
names'. #rant
I suggest to anyone considering to buy colocation space in NYC (or
elsewhere) not to choose Telehouse, unlike a few years ago.
They know that most people will complain, but they very few will actually pull the trigger on a cancel. I see attitudes like this change with ownership or new executives looking to make their mark. Prices will keep going up until whatever metric of how many customers actually cancel is met.
If you're able to cancel, I say do it. One of two things will happen: you'll call their bluff and get offered a better rate, or 2) you get to move somewhere that has a better rate and you know to make sure it's contracted or has a cap on how much it can increase on an annual basis. Yes, moving is horribly inconvenient, but in my opinion it's worse to work with a company who is hostile towards their customers.
$300 MRC for a once-off cross connect isn’t unreasonable. There’s costs and labor involved in running that cable through a riser. Especially if you want it in innerduct.
I’m not sure what Telehouse’s policies are because I’m not a customer, but some companies (TelX comes to mind) you can order them in bulk at a significant discount. Even with the extra labor involved in splicing it to a panel, running a 12 or 24 count cable into a cabinet is a much easier pill to swallow than having a guy up on a ladder or under a floor every time you want to turn up a customer.
Then there’s always off-market options too. You don’t need to be in New York to have decent connectivity to the New York metro region. There’s a few places in Jersey that offer free cross connects in their meet-me rooms because they’re so desperate to have carriers move into their facilities. I don’t think many of them have connectivity to major peering fabrics, though.
A $300 Non-Recurring Cost, sure. The MONTHLY Recurring Cost of
maintaining that cable is not zero, especially if it's in a campus not
just one building, but it's pretty close to zero. Charging the
customer a $300 MRC may not be unusual but it is unreasonable.
I get that floorspace and power is priced pretty close to
cost-recovery so that cross connects are one of the only profit
centers for a carrier neutral facility. It's still obnoxious.
If it’s in an interduct by itself, how much would the square footage per
month occupied by the average cross connect be worth?
I’m not saying I think $300 MRC is legitimate by any means, but, if
you’re going to talk about the ongoing costs, the space in the cable
ladder and/or fiber tray(s) also has to be accounted for.
If it’s in an interduct by itself, how much would the square footage per
month occupied by the average cross connect be worth?
These big datacenter companies are REITs. Similar to self-storage units and apartment buildings, they exist to extract as much money as possible from the users. Nothing more or nothing less. The price relief only comes when the market is grossly overbuilt and if there is actual competition.
Maybe I am confused, but I thought every for-profit business exists to extract as much money as possible.
When a business gives you something for free, they are expecting something in return - return business, personal data, lower churn, good reviews, customer loyalty, etc. - that they can turn into cash. Any business with little or no competition can be expected to raise prices. This is not exactly new or surprising.
Expecting any for-profit business (all of them, not just REITs) to do less than extract maximum cash is deluding yourself.
If it’s in an interduct by itself, how much would the square footage per
month occupied by the average cross connect be worth?
These big datacenter companies are REITs. Similar to self-storage units and apartment buildings, they exist to extract as much money as possible from the users. Nothing more or nothing less. The price relief only comes when the market is grossly overbuilt and if there is actual competition.
- Ethan O'Toole
For a positive side effect, xcon pricing should bring greater demand to dwdm solutions, what would you recommend for an affordable 1u turnkey buy a pair and get >10<30 1g/10g maybe a couple of 40 even a 100g (and mon/expansion)?
$350/mo seems to be standard. Our DCs are at $250. Seems more like they held onto out of date pricing for a long time then realized it.
For what it's worth, Telehouse London is around 30 USD/month for an x-connect within the same building. Our US datacentre (not Telehouse) on the other hand is around 200 USD/month. It's always felt disproportionally expensive but maybe those kind of prices are expected for the North America region.
Patrick W. Gilmore wrote :
Maybe I am confused, but I thought every for-profit business exists to extract as much money as possible.
Especially is said business is potentially in my 401(k) portfolio. I expect them to milk every penny they possibly can out of their customers so my 401(k) grows.
Oh, wait ? I'm one of their customers. They should milk everyone else, but not me of course. What's the name of this thing ? capitalism ?
Michel.
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Correct. Behold the ‘active riser’. We started doing this years ago in our R&E network after we were being nickeled and dimes to cross floors between our own cages we leased from the same colo.
My current facility (in the Ashburn, VA, USA area) is $25/mo with two for free, but when I was shopping around, most other facilities were at least $300/mo. Certainly not unusual but I agree it’s excessive.
oh sure, but price gouging is often bad business practice in the long term. Humans evolved a strong sense of injustice and have a long memory for people and organisations whom they feel take advantage of them.
As someone else pointed out, business practices like this can work in a rising market, but not so well when market conditions become difficult and people end up in a position of being able to make a choice between organisations which may have treated them badly in the past and those which have not.
When a business gives you something for free, they are expecting
something in return - return business, personal data, lower
churn, good reviews, customer loyalty, etc. - that they can turn
into cash. Any business with little or no competition can be
expected to raise prices. This is not exactly new or surprising.
If you “s/free/free or lower cost/“, it satisfies your statement as well. Every business should be deciding “how much can I make -long term-“, and take into account what you, I, and others have said here. Some will think short term, and (hopefully) the market will punish them over time.
Anyway, I think everyone on the thread agrees. Xconn fees are higher than they should be, but not necessarily higher than the market will bear. Yet.
Besides, once everyone turns up a single 100 Tbps port to PacketFabric (or two for redundancy), xconn fees will be irrelevant.
Current list price for 10G Xconnect at the major colo site in Israel is
$5840/month. Discounts are available
Keep complaining about $350/mo costs. You have no idea how lucky you are.
