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  1. #1

    change of ip address in colo

    Hi all,

    in need of some opinion

    recently our bw provider in HE.NET fremont double up our cross connect pricing (even though we have signed the long term contract).

    This is what they say

    "Due to rising costs involved in our company. This is a 10-day notice that we raising the fees of your account. Your new rate will be $## per mbps at a rate of ## mbps sustained usage



    You have 10 days to accept or deny this change request."



    some questions

    1. Should I increase the pricing (its going to be almost double or less specs on the hosting) and pass it to our customers (but there is no downtime)? or

    2. Should I looking for new provider (its going to be more expensive then our current pricing but its not double), we will still need to increase our pricing but not that much, and have some down time due to ip changes ?

    Appreciate all the inputs.

  2. #2
    Join Date
    Aug 2003
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    Pittsburgh
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    I'd say do whichever is more financially feasible:

    • If you see yourself making enough to pay the new fees and you're happy with your current provider, then I'd say stay with them. Your customers will be happier because they don't have a change of IPs or downtime.
    • If you do need to move they'll be hit with a good deal of downtime and new IP addresses (that they'll have to update their DNS servers with). If the lower fees are that big of a deal then I'd say that's your option.


    You could also pay the new fees for a month as you warn your clients of an IP change.. this will also give you time to search for a new uplink provider that HE has.

  3. #3
    Join Date
    Oct 2001
    Posts
    1,319
    Here is what I would do -

    Keep the IPs for incoming traffic along with 1mbps to handle your incoming traffic. Then setup source routing to route all your outgoing bw (I'm assuming you're doing alot more outgoing than incoming) to a different provider or another customer in the datacenter that can give you a better price.

    Good luck!
    Avi B

  4. #4
    Have you tried giving any pushback on the increase. It sounds like you got a form letter. If you talk to an actual person and point out the existing contract you maybe allowed to keep your current rate. However, if you signed a contract you shouldn't even have to put up with this kind of junk, I personally would take my business to a company that can respect a contract.

    Justin

  5. #5
    Join Date
    Jan 2003
    Location
    Chicago, IL
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    6,957
    If you have a signed long-term contract with them state you have a contract and if they shut down your service and cause loss of business, etc. because they don't agree to the agreed upon pricing threaten a lawsuit. Make sure you have a lawyer verify the validity of the contract, etc. first. Only a 10 day notice is insane...
    Karl Zimmerman - Founder & CEO of Steadfast
    VMware Virtual Data Center Platform

    karl @ steadfast.net - Sales/Support: 312-602-2689
    Cloud Hosting, Managed Dedicated Servers, Chicago Colocation, and New Jersey Colocation

  6. #6
    Join Date
    Nov 2002
    Posts
    2,780
    Is it fastserver increasing pricing?
    http://Ethr.net jay@ethr.net
    West Coast AT&T / Level3 / Savvis Bandwidth, Colocation, Dedicated Server, Managed IP Service, Hardware Load Balancing Service, Transport Service, 365 Main St, SFO / 200 Paul Ave, SFO / PAIX, PAO / Market Post Tower, 55 S. Market, SJC / 11 Great Oaks, Equinix, SJC

  7. #7
    Join Date
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    Seattle
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    It really depends what kind of contract you have. Most contracts only cover the provider, that is, the customer has certain obligations that cannot be broken but the company can modify with given notice.

  8. #8
    Join Date
    May 2002
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    Sunny California
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    If you have your own cabinet, why not get a cross-connect from another provider in HE Fremont? Just a thought... there seem to be a lot of low-cost bandwidth resellers there.

  9. #9
    Join Date
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    Seattle
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    That could work, assuming HE will let them port their services into someone elses account. Some providers are cool with this, others are far less than cool

  10. #10
    Join Date
    Nov 2001
    Location
    London UK
    Posts
    129
    have you got your own /24 (class c), if you got that off HE and its PI space you would be able to take it with you, however chances are its come out of their big block and you cant move it.

  11. #11
    Thanks all for the input. We just sign up with another reseller. Unfortunately we are unable to bring the ip with us. We just gotten the cross connect done to our cabinet.

    thanks again all

  12. #12
    Join Date
    Oct 2001
    Posts
    1,319
    Originally posted by my1home
    Thanks all for the input. We just sign up with another reseller. Unfortunately we are unable to bring the ip with us. We just gotten the cross connect done to our cabinet.

    thanks again all
    Just wanted to point out, once again, that if you want to avoid changing your IPs, lower your commit with your current provider to 1 or 2mbps to cover your incoming bw and then use a new provider for your outgoing bw using source routing... that way you can keep your IPs and choose your outbound bw provider
    Avi B

  13. #13
    Join Date
    Feb 2004
    Location
    Louisville, Kentucky
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    Or don't use source routing, and simply point default at your new transit provider. If you are a BGP-speaker, lower the local-preference on routes learned from the old provider.
    Jeff at Innovative Network Concepts / 212-981-0607 x8579 / AIM: jeffsw6
    Expert IP network consultation and operation at affordable rates
    95th Percentile Explained Rate-Limiting on Cisco IOS switches

  14. #14
    This is the first time I hear someones raise bandwidth prices.
    The bandwidth price is alway fall in the past.
    Network Guru

    Cisco Redhat Microsoft Certified
    CCIE - - RHSE - - MCSE

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