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  1. #1

    Internap price range?

    I am getting my quote back Tuesday but need a little bargaining power with these guys...

    Oakland, Ca datacenter

    40mbps, 20A, 42U rack.

    What should I be looking at price range here, how much per mbps?

    Only info I've seen is from 2003 where people were saying $200/mbps. Obviously prices have come WAY down. I've seen people on here reselling internap bandwidth for $12/mbps, but they might have bought a huge commit.

    Any help is appreciated, just looking for a general range.

  2. #2
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    Internap direct is going to be very pricey on a 40Mbps commit. I wouldn't be surprised if they wanted to tap you for over $100/Mbps for the IP transit.
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  3. #3
    Wow, wasn't expecting it to be that expensive. How come going direct would be more expensive than a reseller? Is it just that they buy huge commits?
    Last edited by hdpt00; 01-13-2008 at 03:53 AM.

  4. #4
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    Quote Originally Posted by hdpt00 View Post
    Why would they make it more expensive direct. I would think going to the source would be the cheapest way?
    Typically not in the telecom industry. The larger players only want to deal with other larger customers, and they want the smaller customers to go through reseller channels. Simply put, an account your size would be a hassle for them, so they charge a big premium for providing service to you directly. They are out working deals worth millions of dollars; your deal for $60K/yr is peanuts to them.
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  5. #5
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  6. #6
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    Who is reselling internap at $12/mbps?
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  7. #7
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    We were quoted $65 a mbit with a commit of 25mbit. I would guess around $50-$55 per mbit with a commit of 40mbit.

  8. #8
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  9. #9
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    FDC is not really Internap's reseller. In other words, they cannot sell Internap bandwidth on other locations, but theirs.
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  10. #10
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    A company I consult for just picked up 15mbps on a FE for around $75/mbit. This is direct handoff in an Equinix facility.

  11. #11
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    Go for $50/mbit for a 50mbit commit. For 40mbit they will most likely want you to do $70-80/mbit.
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  12. #12
    The $12/Mbps you are seeing is also below cost
    Not true.
    One group at Internap negotiated a lot of peering deals, while another group negotiated large commits with a couple of carriers. Thus they had far more bandwidth then they needed for a couple of months. Internap had a fire sale, in which they sold full gigs for $12/mbps.
    Several data centers bought them, two purchased 2+ gig commits on 10 gig ports. Those data centers can now well Internap at $12/mbps - their cost - for commited usage, NOT 95th percentile.
    The trick is network utilization. They are making far,far more then 5% on the Internap bandwidth.

    A very, very clever move on their part.

  13. #13
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    Quote Originally Posted by 1-dollar-per-mbps View Post
    Not true.
    One group at Internap negotiated a lot of peering deals
    Is that counter-intuitive to InterNAP's entire marketing that they buy only TRANSIT?
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  14. #14
    Not sure what you mean there, they have been doing private peering for a while

    http://www.internap.com/peering/
    Last edited by 1-dollar-per-mbps; 01-13-2008 at 12:03 PM.

  15. #15
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    The best I can figure is there are many colocation facilities that will provide Internap around $55-65, and I have heard on the street in various places it can be obtained through various channels ranging from $30-$40, or lower depending on huge commits, but you have to be in the right place at the right time to struggle to get anything $25 or lower.

    I'm sure there are exceptions to what I have stated above, this is simply my experience and analysis.

    By enlarge the day of the $100+/meg pricing is over.
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  16. #16
    I'll find out Tuesday what their quote is and report back. $60 and below is what I am really looking.

    Thanks.

  17. #17
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    Quote Originally Posted by 1-dollar-per-mbps View Post
    Not sure what you mean there, they have been doing private peering for a while

    http://www.internap.com/peering/
    Well in light of this proof I must digress I do distinctly remember part of their marketing being that they purchased transit and that ensured them a higher quality of service as paying customers. Not sure when that changed, but it must have been some time ago.
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  18. #18
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    Quote Originally Posted by hdpt00 View Post
    I am getting my quote back Tuesday but need a little bargaining power with these guys...

    Oakland, Ca datacenter

    40mbps, 20A, 42U rack.

    What should I be looking at price range here, how much per mbps?

    Only info I've seen is from 2003 where people were saying $200/mbps. Obviously prices have come WAY down. I've seen people on here reselling internap bandwidth for $12/mbps, but they might have bought a huge commit.

    Any help is appreciated, just looking for a general range.
    Don't pay more than $65/mbps for a 40mb/s commit.

  19. #19
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    Quote Originally Posted by TheWiseOne View Post
    Well in light of this proof I must digress I do distinctly remember part of their marketing being that they purchased transit and that ensured them a higher quality of service as paying customers. Not sure when that changed, but it must have been some time ago.
    Their approach for quite some time has been paid transit from the Tier 1 carriers (which varies a bit by location, but is generally all of them except ATDN and Qwest), augmented with peering with eyeball networks--especially cable companies--and a few Tier 2 networks. I think they've been more aggressive with regards to peering of late, but still remember them having peering with a few cablecos around 3-4 years ago.

    http://www.fixedorbit.com/AS/27/AS27524.htm

  20. #20
    *Update*

    For a 50mbps allocation it is < $65/mbps.

  21. #21
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    If they quoted you on a 50Mbps commit, and you only need a 40Mbps commit, you having to subscribe for an extra 10Mbps, which puts you close to $80Mbps for actual transit costs.

    50 * 65 = $3250/mo
    $3250 / 40 Mbps = $81.25/Mbps
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  22. #22

    *

    Quote Originally Posted by FHDave View Post
    FDC is not really Internap's reseller. In other words, they cannot sell Internap bandwidth on other locations, but theirs.

    That is is correct, but there are true wholesale resellers that can sell direct Internap BW at their POPs at aggressive price points. Maybe not $12 but around $20/mbps
    Last edited by anon-e-mouse; 01-15-2008 at 06:04 PM.

  23. #23
    I actually need 50, not 40, that was mistake. In < 3 months I am going to need 150.

    The price they gave me is very workable.

  24. #24
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    Quote Originally Posted by mams482 View Post
    That is is correct, but there are true wholesale resellers that can sell direct Internap BW at their POPs at aggressive price points. Maybe not $12 but around $20/mbps
    Hm .. have not seen that one. Who might they be?
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  25. #25
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    Quote Originally Posted by 1-dollar-per-mbps View Post
    Not true.
    One group at Internap negotiated a lot of peering deals, while another group negotiated large commits with a couple of carriers. Thus they had far more bandwidth then they needed for a couple of months. Internap had a fire sale, in which they sold full gigs for $12/mbps.
    Several data centers bought them, two purchased 2+ gig commits on 10 gig ports. Those data centers can now well Internap at $12/mbps - their cost - for commited usage, NOT 95th percentile.
    The trick is network utilization. They are making far,far more then 5% on the Internap bandwidth.

    A very, very clever move on their part.
    The one being talked about, FDC, would still be selling it under cost if they were paying $12 per Mbit/sec and were charging $12 per Mbit/sec. The costs in processing the payment, their transport fees (from 350 E Cermak to CBOT), Equinix cross connects, equipment related costs, etc. The person who says that the $12 is below cost still seems to be right.

    I also find it odd that my InterNAP rep never mentioned this deal to me when he specifically knew I was interested in 1 Gbit/sec or so deals for the past 2 years. He has come to me with some specials, but never anything like that. I'm not saying no one was offered that, it is more that I'm upset I didn't get offered it, as I would have almost definitely taken that deal.
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  26. #26
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    Don't feel bad Karl, the FDC $12/mb deal is per mb of bandwidth cap. I.e. 10mb capped line is $120/month + colo space fee, 5mb capped line would be $60.

    This is an entirely different pricing model than 95th percentile which has the advantage of a connection with a much higher cap, allowing for bursting at higher speeds when needed. A 10Mb capped line might be similar to 1-4Mb 95th percentile billing depending on how you use it. All these different pricing models out there make for a difficult time comparing apples to apples.

    That being said I plan to colo a server with FDC in a week or so on that deal.

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