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  1. #1
    Join Date
    Apr 2001
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    Cogent Launches Data Centers with Free Rack Space

    For you Cogent lovers out there:

    http://biz.yahoo.com/prnews/021001/dctu002_1.html

    However, every time I see a press release at yahoo, their stock drops a significant amount. Why is that?

    Anywho, this'll make providers drop their prices even lower, I suspect. Get free rackspace when you purchase only 100mbit ($3k). It doesn't say specifically how much rack space you get, but I gather it's one full rack.

    So now Cogent is specifically targeting service providers and giving them free rackspace on top of their cheap (as in price) bandwidth. Maybe it's just free rack space for a while...

    I await the day when I can pipe a Cogent T1 into my house for $49/month.
    Alex Llera
    Professional Server Management
    FreeBSD|Linux|HSphere|Cpanel|Plesk

  2. #2
    Join Date
    Mar 2002
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    251

    Re: Cogent Launches Data Centers with Free Rack Space

    Originally posted by allera

    I await the day when I can pipe a Cogent T1 into my house for $49/month.
    I'll take 2
    Voiding warranties is what I do best.

  3. #3
    Join Date
    May 2002
    Posts
    450
    They do say it is a promotion, so I won't think this would last forever. I think it is just to attract new customers.

    Jacco
    Wordpress website builder (Build Your Own Money Site) and hosting enthusiast. I test cloud hosters for speed :-). Currently working on HIPAA HQ, Let's Grind Some Coffee and Build Your Own Web Store.

  4. #4
    Well, they have acquired one or two data-centers through the aquisition of PSI.NET and I guess they just want to fill them. Support etc, isn't included in that $3k price.
    321Host-It Internet Services
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  5. #5
    Join Date
    Sep 2001
    Location
    Vancouver
    Posts
    746
    Of course not, your getting a full rack for free which is a great deal. Just find a few on call consultants that are in the area.

  6. #6
    Join Date
    Feb 2002
    Posts
    1,926
    Think they'll be willing to run a 10 MBIT line to my PC here in Europe for $100 a month?

  7. #7
    Originally posted by Tazzman
    Think they'll be willing to run a 10 MBIT line to my PC here in Europe for $100 a month?
    I have a dream that one day little black children and little white children will one day be able to connect to anywere in the world with a 10 mbit connection. I have a dream that this connection will never have a latency of over 100 ms to anywhere in the world.

    Preferably this dream will occur before i have kids .

    P.S. If you want the above statement to be politically correct, replace little black children and little white children with whatever you feel is correct

  8. #8
    I think that post was not required...
    Domain Software, LLC.

  9. #9
    Join Date
    Jul 2002
    Posts
    541
    hehe, that's funny. Notice it's becoming easier to be a little less politically correct these days? Not sure if it's due to change of administration, economy, what...

    Little easier to talk when you don't have to worry about how every group will take what you say. People can be sensitive about differences without having to be walk-on-eggshells sensitive.

    I like the sig too.

    Anyways, I have nothing to add to the Cogent post. Sorry.

    -WC-

  10. #10
    Join Date
    Jun 2002
    Location
    PA, USA
    Posts
    5,143
    Originally posted by Tazzman
    Think they'll be willing to run a 10 MBIT line to my PC here in Europe for $100 a month?
    I think they may be able to do that, but you will have to pay for the "local" loop though
    Fluid Hosting, LLC - Enterprise Cloud Infrastructure: Cloud Shared and Reseller, Cloud VPS, and Cloud Hybrid Server

  11. #11
    Join Date
    Sep 2002
    Location
    Los Angeles
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    37
    Originally posted by web_res

    I have a dream that one day little black children and little white children will one day be able to connect to anywere in the world with a 10 mbit connection. I have a dream that this connection will never have a latency of over 100 ms to anywhere in the world.
    You *do* realize that the part about 100 ms to anywhere in the world isn't possible, right? Not until we figure out how to send things faster than the speed of light, anyway.
    Grant Kirkwood | grant@mzima.net
    Mzima Networks Inc. | 888-44-MZIMA

  12. #12
    Join Date
    Jan 2002
    Posts
    574
    Originally posted by mzima


    You *do* realize that the part about 100 ms to anywhere in the world isn't possible, right? Not until we figure out how to send things faster than the speed of light, anyway.
    Oh, but we have.

    http://www.newscientist.com/news/news.jsp?id=ns99992796

  13. #13
    Join Date
    Sep 2002
    Location
    Los Angeles
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    37
    OK, but....

    "...so in theory no useful information can get transmitted at faster-than-light speeds..."

    Still, the physicist hidden within the deep recesses of my brain is intrigued.
    Grant Kirkwood | grant@mzima.net
    Mzima Networks Inc. | 888-44-MZIMA

  14. #14
    Join Date
    May 2002
    Posts
    44
    Originally posted by mzima
    You *do* realize that the part about 100 ms to anywhere in the world isn't possible, right? Not until we figure out how to send things faster than the speed of light, anyway.
    Earth perimeter is 40.000 Km and speed of light is 300.000 Km/s so it would take 133ms for a beam to travel all around the Earth.

    If we could route it "without resistance", it would take a beam of light 67ms to get to the other part of the planet.

    Nowadays, only 10% of the installed fiber optic of the world is used, so costs should drop if governments didn't interfere, and new findings in light switching and fiber optic features make it very very realistic to get a World Wide Web (yes, games too) in under 100 ms.

    Furthermore, new wireless technologies allow expansion of the Internet to abroad places at full speed so, while we are able to avoid satellites, ping times can be kept under, let's say, 150 ms.

    More problems would arise from computer hardware and software, ability to deploy multimegabit streams, killer applications and "hich tech stuff".

    It's true that America's Army online gaming needs low ping times, although most of the lagging problems come from hardware and software glitches, network saturation and routing "inefficiencies".

    So, light has not a speed problem, we people have.

    Regards.

  15. #15
    Join Date
    Aug 2002
    Location
    California
    Posts
    247
    Cogent is going to go out of business. The devil told me this when he was at my house Saturday.
    argonblue.com | sales | 800.710.8004
    LA Grand Avenue, Rancho Cordova, cages, racks and power plus HE Fremont cabinets available!

  16. #16
    Join Date
    May 2002
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    44
    Originally posted by Idgaf
    Cogent is going to go out of business. The devil told me this when he was at my house Saturday.
    By definition, all businesses are going out of business.

    Rumours don't help and should be banned.

    Did you know about Enron's.

    That remark was not fair of your part.

    Would you like them to say so about your business, job or marriage?

    Regards.

  17. #17
    Join Date
    Dec 2001
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    1,194
    LOLOLOL,,,
    I love the whole speed of light thing, you guys are hardcore, lol!
    www.boxedhost.com
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    A Resellers Dream, In a Box

  18. #18
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    Jul 2002
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    Vancouver, BC
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    this is gonna piss off a few datacenters that resell cogent, ain't it? hehe

  19. #19
    Join Date
    Dec 2000
    Posts
    255
    Originally posted by netdude
    this is gonna piss off a few datacenters that resell cogent, ain't it? hehe

    I would think so.

    I think its a bad move on their part to give away service they wont be making any new friends thats for sure.

  20. #20
    Join Date
    May 2002
    Posts
    44
    Originally posted by netdude
    this is gonna piss off a few datacenters that resell cogent, ain't it? hehe
    As in any sector of economy, the business is not in reselling, it's in service and R+D.

    And the more you buy the cheaper the price.

    Furthermore, the businesses affording $3.000 monthly fees is a niche.

    Regards.

  21. #21
    Join Date
    Dec 2001
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    1,194
    I never understood how they could afford to give the connection as cheap as they did, now free space with the connection?!?!

    I hope cogent does go out of business personally because im tired of solid companies having to try to compete with a company that is most likely just setting themselves up for downfall and will take companies down with them that at the moment cant compete with the pricing.
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  22. #22
    Join Date
    May 2002
    Posts
    44
    Originally posted by jdp29053
    I hope cogent does go out of business personally because im tired of solid companies having to try to compete with a company that is most likely just setting themselves up for downfall
    Why?

    There is a basic rule in business: never, ever depend on a single customer, a single product, or a single provider. NEVER.

    Why aren't you tired of "solid" (not-so) companies that spend YOUR money in private jets, spas or incredibly high expense accounts or salaries?

    IMHO, as long as governments don't feel the need of interfering with businesses and contracts are fulfilled, business is business, let's do it!

    Regards.

  23. #23
    From my limited understanding the major backbone companies have spent a great deal of money laying fiber and right now a good amount of it is unused.

    Is it that unusual for one company to offer low prices so they might actually use all the fiber they paid to lay? Maybe by attracting more customers they will bring more revenue in.

    I'm not claiming that this is the current situation. There are many other factors involved like equipment and more importantly personnel cost.

    In any case I don't think Cogent's plan is to burn up all their money by offering low prices and getting tons of customers to use their currently unused fiber. Plus they cut costs by not peering as much and keeping as much bandwidth in their connections as possible (this also increases latency but your paying a lot less) so they don't have to pay other providers.

    Once a gain this is based on a limited understanding of the subject.

  24. #24
    Join Date
    May 2002
    Posts
    44
    Originally posted by web_res
    the major backbone companies have spent a great deal of money
    Too much for sure.



    Maybe by attracting more customers they will bring more revenue in.
    It might not be intuitive, but in business management as in taxes there is a phenomenon called Laffer Curve, by which reducing taxes you increase the revenue.

    What is better to win three times ten or four times nine?



    I'm not claiming that this is the current situation. There are many other factors involved like equipment and more importantly personnel cost.

    Personnel cost decreases with business volume if burocracy and useless meetings are kept under control, which Cogent surely has.



    In any case I don't think Cogent's plan is to burn up all their money by offering low prices and getting tons of customers to use their currently unused fiber.
    Some big companies, which are not based in a profit search strategy use to burn their cash i.e. in advertising to call for investor's money, which does not reflect in quality of service.


    Plus they cut costs by not peering as much and keeping as much bandwidth in their connections as possible (this also increases latency but your paying a lot less) so they don't have to pay other providers.
    Latency is not a big issue in webhosting business (online gaming is a sector apart)

    Resource optimization happens in all businesses, so ...

    About other providers 3, 4, 5 or 15 times more expensive we should see their peerings, their equipments, their maintenance, their innovations, ... Many times big doesn't mean good.
    Once a gain this is based on a limited understanding of the subject. [/B]
    Not so limited ... but that's my opinion.

    NOTE: I wouldn't like to sound sharp, but my English is not so fluent as I would like. Excuse me if somebody felt attacked or uncomfortable with my opinions.

    Regards.

  25. #25
    Join Date
    Dec 2001
    Posts
    1,194
    I personally think that cogent is hurting the industry, just my opinion... Do i have enough data and enough knowledge of the over all picture to know for sure, NO.. But from what ive read and seen this is my opinion of what i basically understand, so i could be way off target, but i just think they are hurting the industry as a whole and the expectation levels of customers and resellers...
    Cogent is not quality from what i understand, yet a customer will expect a hosting company that is provided by Verio bandwidth to meet the prices of a company provided by Cogent bandwidth, most customers dont know the difference.
    www.boxedhost.com
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