what does data center installation cost most tenants? (slideshare)

What Does Data Center Installation Cost Most Tenants?

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Many factors impact the end cost to tenants and these variables continue to evolve


But the consensus among experts is that the U.S. data center market


has basically reached its lowest point when it comes to pricing and firmer pricing is expected to follow soon


Multi-Tenant Data Centers Keeps Costs Down


Over the past five years, there has been a steady drop in data center pricing as competition increased


Another trend that’s popping up again is the convergence of IT and infrastructure


(and data centers are also becoming IT service providers)


As a result, multi-tenant data centers have started to offer much more than managed or cloud services


This in turn will see colocation providers continuing to focus on large, strategic, wholesale deals and make their money on higher margin clients


Data centers have started to spread out far and wide increasing competition and driving prices down


As customers have become better at evaluating their own colocation needs,


providers have now started to deliver customized space making the price vary within each feature


Building vs. Outsourcing


Outsourcing is always going to be more cost effective than building your own colocation center


According to Forrester, the average cost is around $200 per square foot to build a colocation center


Further, the fiber installed on site can cost more than $10,000 per mile to reach the site


There will also be a need for staff, maintenance, cooling, and 24/7 monitoring which will all add to the expenses


The major benefit of owning your own data center is total control over security, operations, data, and the environment


Data center installation pricing is relative and on average you can expect rack space to cost anywhere from $100 to $300 per month per unit


This price usually includes IP addresses and a preset allotment of bandwidth


Further, server monitoring will be a separate service and cost you anywhere from $75 to $400 per server per month


Finally, depending on the number of servers that need to be migrated,


there will also be an initial setup cost that can run anywhere from $500 to $3,000 for engineering labor


How well do you understand installation costs for a data center?


What’s the biggest mistake that novice buyers make?


Share your thoughts in the Comments below


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what does data center installation cost most tenants? (slideshare)

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