Data Centre Colocation Agreement

7. Remote Hands and Cross Connects – Most data center operators offer remote hands or smart hands service and offer cross-connection services. What can vary greatly from one data center to another is the cost of these services. Finally, once you have signed your first colocation contract, you are, from the operator`s point of view, a captive market for these additional services. You should ensure that the operator has a tariff for basic remote hands and cross-connection services, whenever possible, with controls on the frequency and amount of price increases to allow you to budget for future costs, and with appropriate service levels and response times. A unique feature of some data centers are the connection spaces called “Meet Me Rooms” that allow end users to connect to other telecom operators or third-party networks. A data center provider may choose to host “Meet Me Rooms” as an attractive offering for end users, so that they can access telecom operators at a lower cost, given that the connection is inside the data center (instead of the end user having to travel outside the data center to access the telecom points). Here`s the good and the bad. The good news is that most sections of a colocation contract are negotiable for data centers and MSAs. The bad news is that they can go through several rounds of legal Redlines before being accepted by both parties. This can delay installation dates and even blow up transactions if both parties are not able to agree. It is difficult. We have clients trying to negotiate terms for SLAs colocation providers.

However, many colocation providers have blocked their SLAs. SLAs are so ingrained in their systems and processes that they are very difficult to change and open up the supplier to additional risks and costs. 5. Increase capacity and power density up or down – It can be very helpful to increase the power density of your colocation racks and your overall power capacity as your business grows. This will certainly be easier (and cheaper) than finding a new data center and will avoid the risk for your business to migrate from one data center to another. It is perhaps not surprising that even customers of poorly functioning data centers, faced with these costs and risks, are reluctant to move – the “keybrisity” of the customer. At first, it is worth checking whether there is enough space and electricity in the data center to allow a ladder and whether there are any booking or option fees. Conversely, the ability to reduce your operation can facilitate your exit strategy over a long period of time, for example.

B if you are migrating to a managed or cloud platform with another provider. Since we believe that data centers and co-location agreements will be increasingly common in the UAE, the above-mentioned unique considerations that must be taken into account when drafting a co-location agreement should be taken into account. Example: was approached by a large multinational customer who wanted to rent a private suite and 1 MW of power in a data center in Canada. The colocation provider has offered different options regarding pricing based on the price per kWh. One of the problems with the provision of “Meet Me Rooms” in data centers in the UAE is that the telecommunications regulatory authority may consider these cross-links as a regulated activity for the realization of which only Etisalat and You are licensed…

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