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Charging for cross-connects. Right or wrong.

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  #1  
Old 11-15-2003, 01:47 PM
Papa Smurff Papa Smurff is offline
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Charging for cross-connects. Right or wrong.


Should Internet Data Centers charge customers for cross-connects?
If yes, what type of charge? Monthly recurring or one-time setup? If no, why?



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  #2  
Old 11-15-2003, 01:49 PM
Papa Smurff Papa Smurff is offline
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In my opinion a setup fee is fair along with a VERY SMALL monthly recurring fee for maintenance.

  #3  
Old 11-15-2003, 02:02 PM
XLHost XLHost is offline
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Depends on how big of a pain in the *** it is.

If the x connect is in the same facility, It would depend on how good the facility was for me to decide if i would pay for an x connect.

Most carrier hotels make money off of 3 things, space, power and cross connects. So its kind of a big issue.

-Drew

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  #4  
Old 11-15-2003, 03:19 PM
Papa Smurff Papa Smurff is offline
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Quote:
Originally posted by nixboxen
Depends on how big of a pain in the *** it is.

If the x connect is in the same facility, It would depend on how good the facility was for me to decide if i would pay for an x connect.

Most carrier hotels make money off of 3 things, space, power and cross connects. So its kind of a big issue.

-Drew
True, many data centers make alot of money off cross-connects. I understand paying for space and power because it costs money to lease space and use power. But what about a cross-connect? It's a $5 cable for pete's sake. Why charge me $50 per month for a 7ft $5 cable? I mean, what resources does this cable use that could possible justify paying for it 10 times over in a onemonth period over and over?

  #5  
Old 11-15-2003, 03:24 PM
RackMy.com RackMy.com is offline
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Quote:
But what about a cross-connect? It's a $5 cable for pete's sake. Why charge me $50 per month for a 7ft $5 cable? I mean, what resources does this cable use that could possible justify paying for it 10 times over in a onemonth period over and over?
Managent and maintenance of the crossconnect. Try managing 1,000s of crossconnects and you will see what I mean

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  #6  
Old 11-15-2003, 03:32 PM
Papa Smurff Papa Smurff is offline
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Quote:
Originally posted by RackMy.com
Managent and maintenance of the crossconnect. Try managing 1,000s of crossconnects and you will see what I mean
Been there. Believe me, I understand your point. Now do the numbers:
1000 cross-connects x $50 each = $50,000 per month to manage 1000 cross-connects.
It should not *EVEN* cost that much if good records are kept and the data center is organized.
We spent approx 5 hours per week to keep 1,000 cross-connects under control. Corss-connects are pretty static and they do not chage that often.
Since most data centers charge about $50 per month for a cross-connect then they would be paid $50,000 per month per 1,000 cross-connects to do 20 hours of maintenance work.
Sorry, does not add up.
Cross-connect fees need to come WAY down.

  #7  
Old 11-15-2003, 03:55 PM
RackMy.com RackMy.com is offline
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I guess you must be talking about a CAT 5 crossconnect and not anything else or you would not be saying what you are. There is a lot more to managing crossconnects than just keeping good records.

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  #8  
Old 11-15-2003, 04:01 PM
Papa Smurff Papa Smurff is offline
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Quote:
Originally posted by RackMy.com
I guess you must be talking about a CAT 5 crossconnect and not anything else or you would not be saying what you are. There is a lot more to managing crossconnects than just keeping good records.
Yes, I am talking about Cat5 cross-connects. $50 per month for a cat5 cross-connect is way too much. Seeing how most cross-connects to colocation customers are cat5, why the $50 per month fee?

  #9  
Old 11-15-2003, 04:15 PM
Mrdredd Mrdredd is offline
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If you need a cross connect you should be able to justify the $50/month fee anyways - its not that much for the benefits you receive from it.

  #10  
Old 11-15-2003, 04:24 PM
Papa Smurff Papa Smurff is offline
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Quote:
Originally posted by Mrdredd
If you need a cross connect you should be able to justify the $50/month fee anyways - its not that much for the benefits you receive from it.
Heck, I receive benefits from my home phone line like calling 911.
Could even save my life. But I don't pay the phone company $50 per month just for a phone cable.

It's not that I diaagree with charging for cross-connects I'm just trying to view this from the customer perspective.

  #11  
Old 11-15-2003, 04:49 PM
Mrdredd Mrdredd is offline
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You pay for a 911 call as well.

As a customer - a cross connect is an addon - addons are extra - addon prices are at the discretion of the provider.


Cant do much about that.

  #12  
Old 11-15-2003, 04:52 PM
pvanmeter pvanmeter is offline
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Some facilities now charge a one time fee or give you a certain number free. That is certainly something you should check when evaluating facilities. If you are only going to have one or two then it probably wont be a big deal to pay a small fee. If you are going to need many of them it can make a huge difference in pricing between sites.

Let me give you a real example a prospect of ours is suffering from. 2 years ago when evaluating facilities he chose a competitor because they were $100 cheaper on the cabinet. Once he got his first bill there was a $150 fee for a cat 5 cross-connect, plus install. We include two with the cabinet for free, but the prospect didnt see the value in that.

Two years later the prospect has 8 DS-3 cross-connects and is paying $250 each plus a $900 install. He also has a few other cross-connects but they are smaller amounts. Basically that $100 savings has cost him over $2000/month.

All of the data centers have different pricing. You cant just look at the cost per Mbps or cabinet. What is it going to cost you for the next 5 Mbps? Do they charge for IPs? Remote hands? Cross-connects? You need to look at what your needs are and usually one provider will stand out. But before you sign do a proposal based on where you see your company growing. If you are going to need 10 Class Cs then it is not a good idea to go with someone that charges $5 for each IP. If you are needing cross-connect then you need to factor that in. How much is extra bandwidth?

Take a little bit of extra time up front to avoid having to renegotiate your contract or having to move DC. Make sure you are getting an apples to apples comparison. No DC is going to have the best pricing schedule for everyone no matter how hard we try.

Paul VanMeter

  #13  
Old 11-22-2003, 05:48 AM
ddosguru ddosguru is offline
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I'm going to have to go with "Right."

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  #14  
Old 11-22-2003, 01:56 PM
dogzilla dogzilla is offline
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In Telehouse, London - we can cable between racks within the same room/suite free of charge ,we just have to get a permit to do so. (a few forms to fill out)

If its between rooms - then we have to pay for a telehouse engineer to do it for us.

I dont mind paying.

  #15  
Old 11-22-2003, 06:19 PM
astutiumRob astutiumRob is offline
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at redbus i'm sure you can do it yourself within your suite, subject to risk assessment and method forms, however simpy getting them to do it save some of the hassle. No ongoing charges either.

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