The Advantages of a Simple Pricing System

Many companies rely on data centers to handle their IT needs. Colocation facilities specialize in maintaining redundant energy and connectivity, offering their services at reasonable prices.This ensures the perpetual operations of a client’s servers and other equipment. But how should a client choose a specific data center?

Data center pricing varies from facility to facility. Data centers base their pricing structures off the costs for the following: electricity, cooling water, labor wages, real estate, and telecom connectivity. Basic utility costs vary from region to region and state to state. Certain data centers have highly qualified technicians who earn higher wages than the technicians at other data centers. Some data centers have a limitedcapacity, and therefore higher pricing for the floor space within their facility. There may be fees for client cross-connects, which makes accessingmultiple carriers less attractive.

Choosing the right data center is a difficult process. Many facilities have complicated pricing systems. Here are some features of simple and efficient data center pricing systems:

Power Fee Structure
A data center’s largest expenditure is the electricity it supplies to the clients’ devices. It is important to choose a data center with an appropriate pricing structure for a client’s electricity usage. There are two ways a data center charges for power:

1.) A flat, per-whip rate
a. This is beneficial because the client only pays for electricity used.
b. There are occasions when an additional fee(s) may be charged if the utility cost is a low per kilowatt amount.
2.) A metered setup
a. The client is charged a fixed rate to supply energy to their equipment.
i. A client can overpay if the actual power usage is less than the usage amount covered by the fixed rate.
b. There will typically be minimum monthly charges for this setup.

A client should select a facility that offers a flat, per-whip rate for power. This gives the client more flexibility and provides efficiency without waste.

Cooling Water Fee Structurer
It is estimated that water cooling processes within data centers require 1 kW for each 1 kW required to operate a client’s equipment. A client should double the amount of electricity that their devices use in order to determine the total amount of electricity consumption they will be responsible for. Of course, the cost of water must be considered as well.

Labor Fee Structurer
Data centers usually offer one of the three following labor pricing systems:

1.) Flat rate
a. A standard hourly rate will be charged to the client for any work done in the data center on their behalf.
b. This is not necessarily an efficient pricing system. Some tasks require more skill and expertise than others.
2.) Varying rates
a. One of several hourly rates will be charged to the client based on the specific task that must be accomplished.
b. This is an efficient way of pricing labor services.
3.) Block rate
a. The data center will charge the client for a set number of ‘service hours’.
b. This is not an efficient pricing system. The client may be paying for services that they do not use.

Clients should inquire about the qualifications and certifications of a data center’s staff.

Real Estate Fee Structurer
Instead of directly charging for power consumption, some data centers set pricing based on the amount of space they use in the data center. Per-rack, per-cabinet, or per-cage fees may apply. Of course, the data center pricing will primarily revolve around the amount of power consumed by a client’s devices. This can be a very efficient pricing system as long as the data center has appropriate power caps on their storage units.

Telecom Connectivity Fee Structurer
Many data centers offer multiple carrier access for clients. Cross-connecting fees will sometimes be charged if a client wants to connect to multiple carriers. A client should look for data centers that offer cross-connection with minimal or no fees.

Conclusionr
Data center pricing can be complex because there are various ways to charge clients for the utilities and services provided. Data center pricing is most efficient when the data center charges for utilities and services on a ‘pay-as-you-use’ basis. Paying fixed rates and paying for blocks of service sometimes results in inefficiency. Clients should look for a simple and efficient pricing structure that meets their needs.