13 Mar
2004
13 Mar
'04
3:13 p.m.
paul, ----- Original Message ----- From: "Paul Vixie" <paul@vix.com> To: <nanog@merit.edu> Sent: Saturday, March 13, 2004 2:59 PM Subject: Re: who offers cheap (personal) 1U colo? -- snip --
$50/month at 40U rentable is $2000/rack/month if it's full. after paying for 60A of power and 50Mbits/sec of transit and whatever the rack rents for, the provider's gross margin will be between 25% and 50%, out of which they have to pay salaries. as a standalone business this makes no sense, but at scale or as part of another business, $50/month @1U is just about right.
according to your calculations, 1U + 1.5 breakered amps + 1 Mb/s should cost us $25 to $37.50 to provide. care to share where that is? paul