I think that's where the value in a distributed IX comes into play. The more nimble networks can move to different facilities while still maintaining the connectivity. Enough of that happens and pricing pressure comes into play in other parts of the market (space and cross connects). For those of you that operate in many markets, do you see any parallels where one operator has (or had) a hold on the market (Chicago Equinix and Miami Terremark for instance) compared to more diversified markets like NYC (due to a variety of IXes) or Seattle (due to SIX)? ----- Mike Hammett Intelligent Computing Solutions http://www.ics-il.com Midwest Internet Exchange http://www.midwest-ix.com ----- Original Message ----- From: "Dave Temkin" <dave@temk.in> To: "Brandon Ross" <bross@pobox.com> Cc: "North American Network Operators' Group" <nanog@nanog.org> Sent: Sunday, June 19, 2016 8:19:16 AM Subject: Re: cross connects and their pound of flesh 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