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  1. #1

    Question 5-year term for a cabinet, with no termination options? is this normal?

    I'm looking at leasing space at a carrier hotel in Boston.

    I just got the paperwork, and it looks like it's 5 years, no exit, no resell, no way out. Is this normal or can I get out of it somehow?

    Thanks!

  2. #2
    Join Date
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    Quote Originally Posted by Concrete View Post
    I'm looking at leasing space at a carrier hotel in Boston.

    I just got the paperwork, and it looks like it's 5 years, no exit, no resell, no way out. Is this normal or can I get out of it somehow?

    Thanks!
    5 years for a cabinet is not unheard of but it's rare. Average I've seen is a year. Did you ask to be quoted a shorter term?
    Aaron Wendel
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  3. #3
    Join Date
    May 2006
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    Terms seem rather harsh. Looks like they are in the business of suing people rather than providing infrastructure.

    There is always a way out. Usually via lawyers, money and settlement.

    Rewrite the terms and send it back to them and see what they say. Add a sub-lease clause. Worse they can say is no.

    What happens if say in 3 years you decide to sell the biz? Someone is going to have to cough up 2 years of rent.

  4. #4
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    That's insane. The cost of bandwidth is much lower today than it was five years ago. If you were locked in a contract five years ago for a T1, you'd probably be paying upwards of $3000 a month for it. Don't do it.

    --Tina
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  5. #5
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    the only benefit to a 5 year term may be if they are providing a low power cost

    Other than that it is WAY long. On cage spaces I regularly see 2-3 years, but 5 is uncommon even there.

  6. #6
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    5 year leases are more common if you're renting a number of cabinets or a large cage of some sort. I'd say that a 5 year lease on a single cabinet is unusually long.

    That's insane. The cost of bandwidth is much lower today than it was five years ago. If you were locked in a contract five years ago for a T1, you'd probably be paying upwards of $3000 a month for it. Don't do it.
    Maybe I missed it but I didn't see anything about bandwidth in what the OP said...seems like just space, for which prices usually remain fairly constant.

  7. #7
    Quote Originally Posted by avythe View Post
    Maybe I missed it but I didn't see anything about bandwidth in what the OP said...seems like just space, for which prices usually remain fairly constant.
    Yes, it's only cabinet space and power. I think they're high and mighty because they're not rally a colo, but a carrier hotel.

  8. #8
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    Red line the contract and send it back if five years is too long. All they can say is no if they do they might be too high and mighty for your needs... perhaps being a big fish in a small pond is a better way to meet your needs.

  9. #9
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    Pricing always will be going up every year, is good to have a 5 year only if you know you going to be around for a long time.

    We give 5 year options as well only if the client ask for it.

  10. #10
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    I'll bet that the contract has a clause in it that allows them to increase their prices if they need to, they usually do, so committing to a 5 year term with no get outs at all would be a risky proposition - Even if a solicitor could get you out of it if they jacked prices, it'd be costly.
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  11. #11
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    i'd say look elsewhere or re-write the contract unless you for some reason think that its that good of a deal.
    we've been able to increase our customers bandwidth and space and keep costs the same, looking back 5 years.
    [URL="http://www.careermarketplace.com"]

  12. #12
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    Begin shopping around.
    If you like this company go back to them with a number of other quotes.
    Then ask them to match the contracts.

    1. Always Always ask for the terms for breaking contract in writing.
    2. Always ask for resale rights
    3. Always ask for minimums on rate increases @ the end of the contract. (ie - no more than 4% increase per annum)
    4. Hit them at the end of the Quarter (End of May :-) is close

    There are alternatives - so shop around.
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  13. Our agreement we signed was a 3yr deal with options to sub-lease or sell.
    They offered a 1yr option as well but with slightly higher rates.
    3StrikesDesign LLC
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  14. #14
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    Which provider in Boston are you using, which data center? Is it Markely Group?
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  15. #15
    things changes so quick in the colo \ bandwidth market, you need to have an out in the contract. Is there even SLA's with an out of they arent met?
    -b

  16. #16
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    Quote Originally Posted by AH-Tina View Post
    That's insane. The cost of bandwidth is much lower today than it was five years ago. If you were locked in a contract five years ago for a T1, you'd probably be paying upwards of $3000 a month for it. Don't do it.

    --Tina
    [OOT]
    Anybody paying $3000/month for a T1, even 5 years ago, aleady over paid.
    [/OOT]
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