Through a referral from one of our partners, we recently had the privilege to work on a project for a large global commercial real estate brokerage firm looking to perform an in depth study on Meet-Me-Room (MMR) pricing and best practices within multi-tenant and multi-floor datacenters across the USA. We were STOKED to take on this project for many reasons; the least of which being that we have become infinitely smarter on such a crucial subject.
Though we reviewed dozens of facilities across the country, those we did in depth research on were:
Below is a section from the 14 page report. If you’d like more info, please don’t hesitate to give us a shout!
Driving Influences for Pricing from MMR Operators
The MMR is now viewed by most datacenter providers as a separate product category and revenue center in and of itself with specific monthly recurring and non-recurring fees attached to every form of interconnect that can be made. The driving influences for pricing to this extent are listed below:
Number of Carrier Options Present – The more carriers present within the MMR, the higher likelihood pricing for interconnectivity will increase, along with the cost of power and space within the facility.
Availability and Cost to Install Riser/Conduit – If there are limited options for clients to bring network across the facility floor or between floors, simple laws of supply and demand apply as the limited commodity will demand a higher fee. In some cases, the cost to install additional conduit between floors is extremely high, especially within older facilities that have been retrofitted to become datacenters, and thus the provider must charge high fees to cover their cost to install and provide connectivity.
Occupancy Rate – If a provider is trying to sell a newly developed datacenter or a major anchor tenant has moved out, the provider is most likely to offer drastic discounts on interconnectivity to incentivize clients to sign agreements/leases. More often than not however, it is understood that once the initial term is completed on any agreement, pricing will increase and charges for interconnectivity will be added.
Client Footprint – In some cases, for clients with extremely large footprints looking to make net new installations within a new facility, OSI has seen and directly negotiated for the complete removal of interconnect charges. Power and space requirements however must be large enough, and margins high enough for the provider, for this negotiation to be successful.
Brand Name – Some datacenter providers have spent millions of dollars on marketing over a number of years commanding the mindshare of specific industry verticals. As such, they are viewed as maintaining a superior product primarily through brand recognition alone and are capable of charging higher fees for services across the board.
Location Based Inflation – Due to the increased cost of labor, power, materials and real estate in some regions, a premium can be demanded for the delivery of power, space and cross connect services.
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