Pricing Data Center Co-Location Services: Going Beyond the Initial Bid
Source: Enaxis Consulting
When selecting a data centre, the client looks for two primary things-cost effectiveness and service portfolio. Data center outsourcing is seen upon as a means of cutting costs. The ability of a data provider to do this cannot be gauged from their outsourcing bid. With the variety of data center services available in the market, end-to-end application services providers provide managed services to offer software, hardware, infrastructure, floor space, and cost effectiveness to the client. The other bidders are co-location providers wherein rental space and infrastructure are primary considerations when devising costs of data center outsourcing. This paper studies the basic rules of outsourcing that apply to a co-location pricing bid. But these rules also apply to integrated services providers because separate pieces of the block are incorporated into the overall managed service costs. While there are many points to consider when choosing data center service providers, this paper works with tangible costs that make up the bid of a straight co-location arrangement to evaluate the right bid. The paper takes into consideration three primary concepts for this evaluation. This includes considering how a provider takes into account power usage, ensuring that one does not pay for unnecessary services, and considering critical quality points instead of the costing alone. All of these should be aptly evaluated before one closes in on a data center service provider. The paper helps one do so.