Negotiating colo prices

[JoeB]

I am currently looking for a colocation solution for my hosting and consulting company. Currently I am leasing servers at one of the large bargain ($149/month) dedicated hosts. Nothing wrong with the service or network there but we are seriously looking into a colocation solution. I am only looking at a tier 1 data center in a large metropolitan area. Not really interested in any colo resellers selling slots/racks in a tier 1 data center since we would also be offering almost the same services.

The problem I am having is not so much choosing a provider but in knowing what price I should aim for. I have been looking at XO, Level(3) and Switch and Data. All have given me quotes that are in the same ballpark however all higher than expected ($1500-2000). I know I most likely will need to do some negotiating with the sales folks and I just would like to know what you all think is a good price to aim for.

I would be needing 1 full Cab. at least 42U, 5-10Mbps commit and that's about it. Any suggestions or ideas?

Thanks
JoeB

[mfjp]

You'll most likely get better service from a colo reseller in the Tier1 DC you want. Reason being is you get the DC's own staff support, and you also get your reseller's support. There's really nothing wrong by saving a few bux with buying a rack from a colo reseller to resell.

[coolee]

What is your priority? Company stability? Great staff with emergency on-site managed services? Network? Prestige through DC name recognition? Location?

Every Data Center is unique. It sounds like you've looked at all the big guys...and are getting all the same "big guy quotes." Why not look at some medium or small DC's?

For instance, we specialize in providing services for small and rapidly growing companies that need flexibility, and great service but are price conscious. Our prices are lower, and we are considered a "small business" but our data center is still fantastic. I know for a fact that our pricing is already $200 - 500 lower than what you posted.

Good luck!

[Coloboy]

JoeB,

There are also many advantages of being with Tier1 providers and in large facilities. First off would be the actual quality of the bandwidth being provided, no cogent or HE bandwidth. They will have plenty of support, both with the facilities technicians and the companies own support staff. I know that some of the bigger bandwidth resellers will allow you to choose the facility that's nearest to you if you have 1 cabinet or more...so check up on them and see if they can offer you a deal there.

[JoeB]

I have found a DC here in Michigan for my needs.

Thanks to everyone who replied and PM'ed me.

- Joe