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  1. #1
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    Question Co-location in USA and EU, full rack

    Hello!

    I have about 30 clients that I host for at the moment, and I am going to start a small hosting company to handle my clients since I will probably get more clients the following months.

    I need co-location in both USA (I'm moving to Florida soon, so somewhere close is always a plus) and EU, with great full-rack offers (40+ U). I will need to offer all my clients 100Mbps and around 1-2TB transfer each. I guess having my own little data center is not an option?

    Thanks in advance, I'd appreciate any replies!

  2. #2
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    Depends on the total number of racks you need.

  3. #3
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    Probably not viable to have your own datacenter for such a small footprint.
    If you have the $ to blow, you can start with your own full rack in each location, but expect to spend minimum ~$800 just for the rack, and extra for the bandwidth.

    You don't need to get the same amount of bandwidth under contract, as you offer to your clients, as your usage will probably not be the same amount as you offer them.
    So with bandwidth, etc I would estimate $1000/month per location as a starting point.

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  4. #4
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    Quote Originally Posted by cresci View Post
    Depends on the total number of racks you need.
    As it looks now I will need one full rack (40-46~ units) per location, but it might increase in the future.


    Quote Originally Posted by CGotzmann View Post
    Probably not viable to have your own datacenter for such a small footprint.
    If you have the $ to blow, you can start with your own full rack in each location, but expect to spend minimum ~$800 just for the rack, and extra for the bandwidth.

    You don't need to get the same amount of bandwidth under contract, as you offer to your clients, as your usage will probably not be the same amount as you offer them.
    So with bandwidth, etc I would estimate $1000/month per location as a starting point.
    Oh alright, $1000/month is no problem, you sure that price is enough for the rack, bandwidth, speed, power and IPs?

  5. #5
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    Just an estimate ... how much bandwidth? How many IPs?
    $800 is enough for rack and 20A, normally, but its just estimate. Can be $800-$1000.
    I added ~$200 for bandwidth.

    You will most likely not use all the space in the rack, your limit will be power usage...
    If you want to fill up as much as possible, you need to add second circuit so at least 40A per rack, and you are looking at estimate around $1100-$1200 per rack, more if you are doing higher power (60A, etc if its allowed)

    You need to get your specific exact requirements and then contact some providers in the locations you are interested.

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  6. #6
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    Quote Originally Posted by CGotzmann View Post
    Just an estimate ... how much bandwidth? How many IPs?
    $800 is enough for rack and 20A, normally, but its just estimate. Can be $800-$1000.
    I added ~$200 for bandwidth.

    You will most likely not use all the space in the rack, your limit will be power usage...
    If you want to fill up as much as possible, you need to add second circuit so at least 40A per rack, and you are looking at estimate around $1100-$1200 per rack, more if you are doing higher power (60A, etc if its allowed)

    You need to get your specific exact requirements and then contact some providers in the locations you are interested.
    Thanks for your reply.

    I will need one IP per server. And each client will have a 2TB transfer limit, however they will probably not use all, maybe 1TB in average max? Not sure I haven't controlled this before.

    How can I calculate how much power I need? Have never need to worried about this before hehe. Well I dont have to fill the whole rack, it depends on the price. If it's cheaper to have 30 servers in each rack then of course I'll do that.

    Yeah thanks for your heads up I will look more into power, bandwidth etc.

  7. #7
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    Depends on specs... post specs of what the majority of your servers will be

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  8. #8
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    Haven't really decided exactly which servers to buy, but it will be with following specs:

    1x Intel Xeon 3430 2.4 GHz
    2x 250GB SATAII HDD
    2-12GB DDR3 RAM, most of them 4GB

    Currently looking on http://www.twp.nl/index.php?task=10&...WPSS1271333614 and some Dell rack servers.

  9. #9
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    These specs will use 1A each. A 20A circuit will allow you to have 15-16 of them. Two 20A circuits, 32 of them (30 if you count for switching, KVM and other gear).

  10. #10
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    Also, you can expect these specs to cost around $750-1000 (for the extra RAM) each unit, if using a Supermicro server with remote KVM capability.

  11. #11
    Quote Originally Posted by CGotzmann View Post
    Probably not viable to have your own datacenter for such a small footprint.
    If you have the $ to blow, you can start with your own full rack in each location, but expect to spend minimum ~$800 just for the rack, and extra for the bandwidth.

    You don't need to get the same amount of bandwidth under contract, as you offer to your clients, as your usage will probably not be the same amount as you offer them.
    So with bandwidth, etc I would estimate $1000/month per location as a starting point.
    I would agree with this 100%.

    Unless you've already got customers in both locations, I would focus on just one location for now, because you would be looking at combined costs of around $2k / mo at each location to start out.
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  12. #12
    Quote Originally Posted by cresci View Post
    These specs will use 1A each. A 20A circuit will allow you to have 15-16 of them. Two 20A circuits, 32 of them (30 if you count for switching, KVM and other gear).
    this is spot on as well. We see the same thing using similar specs in our racks.
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  13. #13
    Quote Originally Posted by funkywizard View Post
    Unless you've already got customers in both locations, I would focus on just one location for now, because you would be looking at combined costs of around $2k / mo at each location to start out.
    Even if he only has a decent amount of customers, it would be better to get the full rack + a decent amount of power/bandwidth.

    He can get more power/bandwidth later as required, but can say *today* to his customers that they can have their preferred location.
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  14. #14
    Quote Originally Posted by plumsauce View Post
    Even if he only has a decent amount of customers, it would be better to get the full rack + a decent amount of power/bandwidth.

    He can get more power/bandwidth later as required, but can say *today* to his customers that they can have their preferred location.
    You'd think so, but it really complicates your operations. I've found it really hard to get good pricing on colo bandwidth without a pretty sizable commitment. And similarly, the cost of smaller amounts of rackspace tends to be a lot higher per server than when you get up to a full rack. So your first major problem is, that if you don't have enough volume, you either have to pay for something you're not using (not trivial when that outlay is $2k *minimum*), or you have to raise your prices.

    Secondly, many customers you bring on are looking to do business with *you* first, and looking to do business in *your location* second. Being in one location vs both locations is not going to double your sales or lead conversions. I ended up pulling out of the UK because I could no longer justify the added expenses of being there for just a couple customers. By having just one location to worry about, it greatly simplifies a lot of areas that you wouldn't think would take up a lot of time and add a lot of costs, but do. I don't have to worry about customs and taxes in multiple locations, I don't have to worry as much about what time zone the datacenter employees (sales / billing / etc) are working on, how I'm going to handle getting my servers built / repaired, having spare parts and inventory at two locations, and all of that. On top of it, you need to work out your pricing and business model at two locations. Since the company you are dealing with at Colo A might be charging different amounts for power, rackspace, bandwidth, remote hands, and so on than Colo B, it's hard to have a consistent set of prices and offerings at both locations. Without similar offerings at both locations, it can easily muddle your business model and not make it clear to your customers who exactly you're trying to target.

    For all these reasons, I feel really good about my decision to focus on just one location. When you try to be everything to everyone, you can end up really being nothing to nobody. Better to focus on one location, get that really solid, and then only expand to new locations if there is a large pent up demand coming from your customers. Even softlayer only has 3 locations, all in the US, and it's pretty obvious their Dallas location is the largest and most important to them. How long did it take them to even open up a second or third location? How many thousands of servers did they have in Dallas before they opened another location?
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  15. #15
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    Hi everyone and thank you very your replies.

    @funkywizard
    Alright thanks a lot of your useful hints. I have decided to focus on just one location first. I can take all my present costumers to one location that is no problem. Then I will look for more customers in the continent that I will start in. Which would be best? Where is the lowest co-location prices and highest demand on dedicated servers?

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