Co-Location Pricing Case Study

Spent hours scouring the internet in the hunt for server co-location services, only to come across fancy all singing and dancing internet sites but something is missing?

.... It's the price, in most instances you either have to "Request a Quote", or "Price on Application" which is in our opinion the same, and only after you have supplied all your personal or company information will a price then be forthcoming, why could this be the case? Well we asked a research company to do a test for us on this.

Two separate and random Co-Location/Data Centre companies was contacted over a space of several hours within the same 24 hour period, and a Quote/Price was requested. On advice we are not going to name the two companies.

Both companies were contacted with the same enquiry which was the hosting of 2 x 19" Rack Mountable servers with a specific amount of power supply and monthly data transfer, it was made clear nothing else was required. Quite simple you would think right? 

As expected details had to be exchanged before a quote could be offered. The research company posed as a FTSE100 company. Only after 2 hours of telephone conversation of trying to up-sell products and services, finally a price was given. It was astronomical.

Later in the day, the research company again approached the same two businesses with the exact same requirements, this time posing as sole traders. Almost immediately we are told the tone and attidude of the sales staff had changed sounding uninterested. A price was received within minutes which was less than a quarter of the price when research company posed as a FTSE100 company.

Whilst we fully understand and respect that each company has a right to charge what it likes, and whether or not it publically publishes prices, the following view can be formed. The bigger the client is an assumption is made the greater amount can be charged. Smaller the company more realistic prices are charged.

The question should then be asked. "Would either of the two companies that was contacted have provided a different level of service or support?" If so was it based solely on who the customer is. The Co-Location and Data Centre industry has for a long time acted in this manner, over rating themselves and charging prices that are in some cases thousands of pounds more than "average". 

At PMN Telecom we always publishes our prices in full with no hidden costs that will appear on your invoice. So if you a FTSE100 or a Sole Trader. We treat all of our customers equally and professionally regardless of the amount your spending with us. - Ofcourse everyone like the VIP treatment, so we do offer an extended Service Level Agreement if you want to pay for it, but we'd never force it on to you.