On Sat, Jun 18, 2016 at 12:54 PM, Brandon Ross <bross@pobox.com> wrote:
Value based pricing is all the rage these days, which is why they charge you so much for cross connects.
Exactly. Not that I don't like free cross connects (they're the bees knees, in fact), but at the end of the day, an existing colo operator is not going to go from paid->free cross connects without extracting that pound of flesh (read: sweet sweet 100% pure margin) from somewhere else. Your space and/or power prices will go up to backfill that lost profit. That said, those of us that buy a decent amount of colo prefer to trade in the value of the asset leased/purchased - space & power - as we have real world indexes to tie the underlying cost to for negotiation purposes. And as colo operators get freaked out over margin compression on the impending 10->100G conversion (which is happening exponentially faster than 100->1G & 1G->10G) they'll need to move those levers of spend around regardless. -Dave