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  1. #1
    Join Date
    May 2005
    Location
    Bay Area
    Posts
    1,211

    Is this a good price?

    Would 249.99/mo be a decent offer in HE fremont #2 for 1/4 rack w/ 5A and 1mbit with extra mbits @ 50 per? I am thinking about doing colo in HE and I am not sure if people would go for the prices I am wanting to charge. The bandwidth wouldn't be oversold and obviously I could get prices down easy with higher commits. Some friendly professional opinions perhaps?

  2. #2
    Join Date
    Feb 2006
    Location
    New York
    Posts
    634
    That sounds pretty reasonable if you ask me - not sure on the quality of the bandwidth but generaly speaking if its guaranteed bandwidth that sounds pretty good. $50/mbit for non-shared non-oversold colo bandwidth seems a bit cheap in the colocatoin market (for quality) - what makes you sure its not over sold? The cost at most providers (when factoring in the routers/staff/lease payments etc) to get large mbit capacity to sell usualy is around $30-$40/mbit (if lower quality/budget cogent network connections then that drops in half in high quantity) - so if they are providing guaranteed bandwidth at $50 thats pretty cheap. Most colo providers try to make a few bucks on that bandwidth, since they don't exactly get rich on the rack/power usage with todays current energy/staff costs sky rocketing. If they are going to connect you to Cogent (only or primarily) then make sure you dont need/plan to run any network sensative applications like VOIP or game servers.

    I've seen half racks go at $500 lately in popular colo's, not even including bandwidth! So 1/4 rack with bandwidth that sounds decent. Of course the usual questions come up - is the power protected (UPS/generator-on-site?), is there a cost for IP's, 24x7 access, bandwidth QUALITY/connections, etc). The true value can always be hard to find until you ask all the questions.
    Last edited by turnkeyinternet; 10-17-2006 at 09:29 AM.
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  3. #3
    Join Date
    Apr 2005
    Location
    Jacksonville, FL
    Posts
    977
    HE bandwidth is notoriously problematic, for a variety of reasons that have been covered in other threads. Personally I'd prefer Cogent any day; it's probably going to be the same price or cheaper. Ring up a Cogent reseller, perhaps Zogmo or colo4dallas.

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  4. #4
    Join Date
    Apr 2003
    Location
    San Jose, CA.
    Posts
    1,622
    Fwiw, I disagree somewhat with the statement that "HE bandwidth is notoriously problematic"... for most people it works just fine (I can think of at least one reseller who pushes half a dozen gbps (or more) of streaming audio and seems fairly satisfied).

    HE bandwidth has a large price range depending on your commit.
    For a 100meg it's about $20/mbps, for 1000meg it's about $13/mbps, and as you quote... it goes up significantly if you are only paying for a small commitment.

    I think your biggest limiting factor is going to be the 5 Amps per quarter rack. With current beefy systems out there easily taking 2 Amps under load... I can easily forsee in a few months down the line when Quad core CPUs start becoming the next greatest thing that your customers might express frustration of only being able to fit 1 or 2 machines and a switch in that 5Amps.

    So many people just have no understanding of how much power a machine takes up. They are just familiar with the number of rack units a machine takes up. So If you are selling off a quarter rack (being about 10U), many customers are going to figure they'll beable to fit maybe 9 small machines and a switch in there. Without realizing that the power limitations would actualy make it much much less.

    I'm not sure on HE's pricing on extra power, or their flexibility for a small footprint customer (only one or two cabinets)... But, If you could somehow provide 10Amps in that quarter rack space you'd beable to much easier get more customers.

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