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Also, the rack pricing is relative to the datacenter quality and equipment quality in the datacenter as well as the provided SLA's on power and uptime with regards to the actual datacenter.
When you have to account for UPS's for the entire datacenter, transfer switches, generators with filled diesel tanks, as well as cost of purchasing additional diesel everytime we run a genset power load test, etc.
Pricing also takes into account the level of personal service which is delivered, etc -- all colo accounts include:
100% Power Uptime SLA
Conditioned and UPS Backed Power
Generator Backed Power w/ 48 hour refueling contracts
24/7 Onsite Support
Remote hands / Management
Ping and HTTP Monitoring Free for all servers
Hardware Swaps Included free
24/7 Reboots Included free
BIOS Changes Included free
O/S (re)Installation $50 flat fee - Volume discounts available
Hardware troubleshooting $25 per half-hour
Software troubleshooting $25 per half-hour
Server Management Ranges from $25 to $59 a month
This is what people would expect to see in dedicated servers, and we offer it in a colocation solution ... it is obviously well worth it as our colo side of the business is doing quite well.
We do a lot of local business, and compared with our competitors (VeriCenter, CyrusOne) who charge extremely high rates but offer less inclusive / personal service -- we are very affordable.
We also negotiate on pricing ... i mentioned our list pricing in my original price
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