Find Colocation, Dedicated Servers & Cloud Hosting:
Call Now (888) 400-5732

The Odd Price of Colocation Solutions

Posted by QuoteColo on October 11, 2013 - Updated on October 11, 2013

 the odd price of colocation solutions

As the Internet’s number one destination for Colocation reviews, we have a great appreciation for the consumer, the IT professional or the C-level exec who takes it upon themselves to investigate the true cost of data center colocation pricing. We greatly appreciate them because a) we know how hard it can be to decipher between varying provider colocation costs and b) we know searching for data center colocation pricing is something the aforementioned parties only need to do once every three to five years.

The reason why researching server colocation pricing is such an arduous and complicated task is due to the lack of standardization across the colocation industry. While some providers will supply consumers with costs dependent on the amount of energy their racks will use (how many kilowatts of energy), others might base colocation services pricing on per circuit.

When it comes to evaluating colocation costs based on per kilowatt of energy used, the calculation is pretty easy to make. Understand how many racks, cabinets, servers you will need, understand how much energy they use on the monthly basis and convert that into a kilowatt price structure. Kilowatt colocation hosting costs are simple to calculate.

On the other side of the coin, when providers supply data center colocation pricing based on a per circuit model, consumers need to understand how much power they will be getting from the provider on a monthly basis mixed with if that power need can be supported by your provider. This can also be called the density supported.

With the lack of standardization in colocation pricing, the question has to be asked, why is there a lack of standardization when it comes to data center colocation pricing?

The Issue with Colocation Costs Standardization

Before we jump into any highbrow conversations concerning why a lack of colocation hosting prices remain in the web hosting industry, we have to attack the problem as a business man. From the business point of view, the colocation and data center industry is interested in two things. One, provide the best colocation, dedicated server, web hosting etc. solutions to the market. Two, make money.

For the sake of this article, point two is more important than point one. When you think of the colocation business in terms of being a business, the reason a lack of standardization exists across the industry becomes simple: with no standard practice or pricing models, colocation companies and data center hosting firms can charge differing clients differently and can effectively hide added “fees” into the cost of the overall service. Just like your cell phone company hides additional “fees” below the fold, colocation pricing structures are sprung on the market in the same fashion.

Another reason for a lack of standard server colocation pricing within the industry can be attributed to getting clients in the door for an initial conversation. By this we mean if colocation companies, like cell phone companies, came right out with all their fees and costs, no one would enter into business with them. With a lack of standardization in colocation costs, data center providers have more access to interested clients.

The lack of standardization with colocation hosting pricing shouldn’t dissuade you as a consumer or business from utilizing colocation solutions. If anything, because every provider in the colocation industry acts in the same manor, the playing field is a bit more level.

While you shouldn’t rule out colocation providers due to the aforementioned information, the aforementioned information means you should do your research on colocation firms via review services like QuoteColo. We can help you decipher the bull because we deal with it every day.

What Do You Think?