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  1. #1

    US colo vs Asia/Australia, Europe

    I am trying to understand non domestic US colo options for a large potential client of ours. How does US colo pricing compare to providers Abroad in Europe, and Asia/Australia. Is floor space (2500 sq ft) cheaper? Is bandwidth cheaper? How about quality of service and network?

    Anyone with any insight? I would appreciate the help.

    Bob
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  2. #2
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    US Colo pricing is typically cheaper due to the abundance of fiber in the ground and other factors. But even so, the pricing does vary from place to place within the US. I assume it's the same for outside the US as well, though the pricing will typically start higher than US based hosts. Thats why many people choose to put their servers in a US based facility with good international connectivity.
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    Actual datacenter quality should be similar. However, connectivity is much better in the US than any other country in the world. Typically in order for someone in another country to compete with US pricing, they have to be overselling a lot more, which really eliminates quality of the bandwidth. I would suggest colocating on the east coast (NY/VA/MA/PA/NJ), as that is the closest to the UK/Europe/etc..

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    Overselling is another factor for cheaper bandwidth in the United States.

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    Originally posted by mm455
    Overselling is another factor for cheaper bandwidth in the United States.
    Not neccessarily.
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  6. #6
    Thanks for the info...please keep it coming!

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    The colo market in the US is a lot more saturated than overseas, therefore new start-ups have to oversell to be competitive. You'll find a lot more cheap deals here than anywhere else.

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    Originally posted by mm455
    The colo market in the US is a lot more saturated than overseas, therefore new start-ups have to oversell to be competitive. You'll find a lot more cheap deals here than anywhere else.
    That is not exactly why it is so much cheaper in the states. It is also cheaper because the US has invested a lot more money into telecommunications than any other country. Therefore we have a lot of unused bandwidth just waiting to be filled. So companies will sell for cheaper to get things used up.

  9. #9
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    Originally posted by JHosts
    That is not exactly why it is so much cheaper in the states. It is also cheaper because the US has invested a lot more money into telecommunications than any other country. Therefore we have a lot of unused bandwidth just waiting to be filled. So companies will sell for cheaper to get things used up.

    That is a valid point, however, I never said it was the sole reason why, I only stated that it was a factor. While overselling is not a bad thing it is much more of a common business practice within the US markets where the level of overselling tends to be higher than anywhere else I noticed.

  10. #10
    Originally posted by mm455
    Overselling is another factor for cheaper bandwidth in the United States.
    Overselling can be done anywhere pretty much, not just US.

  11. #11
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    Some points.

    - In US the floor space is cheaper compared with most EU countries (not always ofcourse..)

    - Colocation is in some countries cheaper, - for example the Netherlands - due the high competition.

    - I don't think that bandwidth is cheaper in the US.

  12. #12
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    Originally posted by quickred
    Some points.

    - In US the floor space is cheaper compared with most EU countries (not always ofcourse..)

    - Colocation is in some countries cheaper, - for example the Netherlands - due the high competition.

    - I don't think that bandwidth is cheaper in the US.
    Why dont you think bandwidth is cheaper in the US? It's a proven fact that it is. Other countries are just not as developed and cant afford to be so cheap.

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    Originally posted by JHosts
    Why dont you think bandwidth is cheaper in the US? It's a proven fact that it is.
    Proven by what? I can get colocation with EUR 10,00 per Mbit (cogent free) in Amsterdam with 24/7 access. Or a dedicated server with 1000GB traffic for only EUR 44,10.

    Servers with 1000s of free traffic will not say the traffic is cheaper. For you maybe, but not for your provider.

    Some cheap providers:
    www.ctn1.net (french)
    www.ovh.com (french)
    www.leaseweb.com (dutch)
    www.rackcheck.net (german)
    etc. etc.

    Originally posted by JHosts
    Other countries are just not as developed and cant afford to be so cheap.
    Not as developed? Sorry, but we've in the E.U. for example the same Cogent deals as in the US, in Amsterdam (the Netherlands) we've after Londen the largest internet exchange (60Gbit/s usage), almost all transit providers have a PoP in Amsterdam, and there are many datacenters (and most independent). Please do some research, there is more than where you life. And than I'm not talking about 99% DSL coverage with speeds up to 8mbit (and in some months 24Mbits via ADSL2).

    Please, do some research..

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    Sure there might be 60 Gbit/s but remember, we have one company in the US alone, just one company, with a 500 Gbps network, and they use about 250 gbps of it. In order for Europe to get such low prices they have to oversell a lot more, becuase the prices are not the same. There is one country who is similar to the US in development, and that's Sweden. Sweden is the way it is because the government (not businesses) invested tons of money into telecommunications. And the quality is very low in Sweden.

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    Originally posted by mm455
    Overselling is another factor for cheaper bandwidth in the United States.
    Incorrect. Overselling has nothing to do with prices in the US. We're not talking about little WHT-based companies here.
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    Originally posted by bqinternet
    Incorrect. Overselling has nothing to do with prices in the US. We're not talking about little WHT-based companies here.
    I disagree. Be specific and explain yourself.

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    Originally posted by JHosts
    Sure there might be 60 Gbit/s but remember, we have one company in the US alone, just one company, with a 500 Gbps network, and they use about 250 gbps of it.

    Say what?

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    What has the usage of _one_ company to do with overall colocation prices in US vs Europe?

    I buy a mbit of transit worldwide bandwith currently at 5 euro/mbit, european wide only at 3 euro/mbit and peering at AMS-IX (most peering parties in all world in one point) at 0,33 euro/mbit

    Also one full cabinet plus 16A is 225 euro monthly.

    Please mention me one provider in US where i can get such pricing?

    BTW: i heard that Shell in Globalswitch, Netherlands currently utilises about 500 gigabit bandwith, i am not sure if it is true but it would beat your figure. I am quite sure Western Europe has more public peering points and high speed internet availability then USA where some people have even no choice but to be on dialup

  19. #19
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    Originally posted by JHosts
    That is not exactly why it is so much cheaper in the states. It is also cheaper because the US has invested a lot more money into telecommunications than any other country. Therefore we have a lot of unused bandwidth just waiting to be filled. So companies will sell for cheaper to get things used up.
    Yes, the US has invested a lot of money into international telecommunications than any other country, and the US was obviously very poised to be the 'early adopters' on the Internet and make up the majority of eyeballs and content.

    We've invested money (rather, the American public has lost large amounts of money) to support these buildouts. Global Crossings, Tyco, the list goes on.

    Who owns this infrastructure now? Look at what has happened to GX and Tyco. Who are the fastest growing countries as far as eyeballs? Definitely not the US.

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  20. #20
    Bandwidth in Australia is prohibitively expensive - for example bandwidth at Equinix in Sydney, you will be looking at about $800/Mbit on low commitments - pricing does not get much cheaper if you purchase large amounts. Equinix is a high quality DC and rack space will cost similar to the US, but remote hands will cost you quite a lot.
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    You are definitely right there crucialx, about bandwidth being expensive in Australia.

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    Originally posted by JHosts
    That is not exactly why it is so much cheaper in the states. It is also cheaper because the US has invested a lot more money into telecommunications than any other country. Therefore we have a lot of unused bandwidth just waiting to be filled. So companies will sell for cheaper to get things used up.
    Originally posted by JHosts
    Why dont you think bandwidth is cheaper in the US? It's a proven fact that it is. Other countries are just not as developed and cant afford to be so cheap.
    This is soly because of the 'weak' US Dollar, it has nothing todo with technology or being more developed. One can easily obtain USA transit pricing in Europe.

    Europe has a far more superior network taking into consideration you are talking about countries and not states, yet Europe still offers a more stable and lower latency network than the USA.
    Some may argue that the USA has a larger footprint but do bare in mind that Europe has almost double the population of the USA to which it needs/provides Internet Connectivity.
    Theoretically making Europe a much larger network

    Just my 2pence
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  23. #23
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    Originally posted by JHosts
    Sure there might be 60 Gbit/s but remember, we have one company in the US alone, just one company, with a 500 Gbps network, and they use about 250 gbps of it.
    Which company would that be?
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