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  1. #1
    Join Date
    Feb 2004
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    Price of dedicated lower than colocated, how?

    I'm gathering info for getting a new dedicated server, planning on using my own colocated hardware, but still looking at what's available in dedicated servers at the same time.

    There are lot's of dedicated servers being offered at prices lower than 1U colocated rackspace. How's that possible, what am I missing?
    bigwrench

  2. #2
    Join Date
    Jan 2004
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    care to share some links...lmao i must be looking in the wrong place lol.

    but on a more serious note, proberly find colocation space filling up so much in some places that they do charge that little bit extra for somone to host there kit in there space.

  3. #3
    Join Date
    Apr 2006
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    Remember consistency is what lowers prices. Whats easier, throw 100 servers on racks, hook up your software that sets everything up and takes care of billing, or dealing with 100 special cases each who needs to ship a different kind of server each takes a different amount of power, etc.
    Jordan Jacobs | VP, Products|SingleHop| JJ @SingleHop.com
    Managed Dedicated Servers | Bare-Metal Servers | Cloud Services

  4. #4
    Join Date
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    New York, NY
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    Jordan hit the nail on the head. Colocation is a lot more complicated and risky for the host. Dedicated servers can be installed in volume and the resource requirements are a known quantity.

    The other factor is usually bandwidth. Colocation customers tend to use all or most of the bandwidth that they pay for, whereas dedicated server customers tend not to use anywhere close to what they are given.
    Scott Burns, President
    BQ Internet Corporation
    Remote Rsync and FTP backup solutions
    *** http://www.bqbackup.com/ ***

  5. #5
    Join Date
    Jun 2005
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    Quote Originally Posted by bigwrench View Post
    I'm gathering info for getting a new dedicated server, planning on using my own colocated hardware, but still looking at what's available in dedicated servers at the same time.

    There are lot's of dedicated servers being offered at prices lower than 1U colocated rackspace. How's that possible, what am I missing?
    I think most of your questions/doubts were answered/discussed in this thread:

    http://www.webhostingtalk.com/showthread.php?t=857315

  6. #6
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    Feb 2004
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    Thank you dotHostel, that's just what I was looking for.

    There seem to be more unknowns in colo space than there are in a ds already in its slot, from ready the other thread.

    I love the post about colo needing to impress it's walk-in customers vs. a messy ds datacenter only a few employees walk into.
    bigwrench

  7. #7
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    In colo as ur server quantity increases price decreases .
    <<< Please see Forum Guidelines for signature setup. >>>

  8. #8
    Join Date
    Dec 2001
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    Houston Texas
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    Quote Originally Posted by bigwrench View Post
    I'm gathering info for getting a new dedicated server, planning on using my own colocated hardware, but still looking at what's available in dedicated servers at the same time.

    There are lot's of dedicated servers being offered at prices lower than 1U colocated rackspace. How's that possible, what am I missing?
    the dedicated company is not paying for 1u - they have a large builk contract on space that allows them to have the space and power much cheaper and then they have servers that have been in production over 3 years so they are fully capitalized so they view them as no cost assets.
    Dedicated Servers
    WWW.NETDEPOT.COM
    Since 2000

  9. #9
    Join Date
    Mar 2009
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    2,222

    *

    Quote Originally Posted by bigwrench View Post
    I'm gathering info for getting a new dedicated server, planning on using my own colocated hardware, but still looking at what's available in dedicated servers at the same time.

    There are lot's of dedicated servers being offered at prices lower than 1U colocated rackspace. How's that possible, what am I missing?
    A good example is Hetzner, who offer colocation space and servers.

    Colocation: http://www.hetzner.de/en/hosting/pro...on/uebersicht/

    39 Euros per month
    1 U space
    2000GB bandwidth at 100mbps(*)
    50 watts power
    Additional power usage 29.75 Eurocents per watt

    So rack space for a 100-watt server would cost 53.87 Euros a month.



    Dedicated server: http://www.hetzner.de/en/hosting/pro...ootserver/eq4/

    49 Euros per month
    2000GB at 100mbps(*)
    Intel® Core™ i7-920 Quadcore
    8GB RAM
    2 x 750 GB SATA-II HDD (Software-RAID 1)


    (*)"Traffic Usage is for free. We will restrict the connection speed to 10 MBit/s if more than 2000 GB/month are exceeded. Optional, a permanent 100 MBit/s-bandwidth will be charged 14,90 € (incl. VAT) per additional TB."

  10. #10
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    Remember that dedicated servers can be towers on a breadrack and the actual cost to host per server is probably only around $10 per month (depending on scale). Server might cost about $500 to buy. Data is pooled which reduces per unit cost. A 1RU is the most expensive form of colocation as you are at the low usage end of the scale. All in all a matter of economies of scale.

    Hope that makes sense...hard to explain than I thought

  11. #11
    Join Date
    Dec 2006
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    More labor is involved with colocation than dedicated server hosting. Hence the price difference.

  12. #12
    Join Date
    Feb 2004
    Location
    Phoenix, AZ
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    It's making sense now, it's just that I had a mindset that DS = colo+server, it's obviously not that simple. How could more cost less? There's no substitute for the insight found here on WHT.
    bigwrench

  13. #13
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    Jan 2004
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    Greece
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    Yes Hetzner's servers are tower-based. Also I am sure their high automation allows them to have less techs on the datacenter than other datacenters with similar size. It's sad that most european datacenters don't have this kind of automation.

  14. #14
    Join Date
    Jul 2008
    Location
    New Zealand
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    It depends on how many servers you have, Usually with co-location the more servers you have (and only in the long run) you will save a massive amount. Also collocation is great for those who need the high amount of bandwidth.

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