— Blog

What Should I Ask Data Center Suppliers About Their Leases, and How Does That Affect the End User?

Ben Gonyea
March 13, 2014

As we’ve discussed here on our blog before, outsourcing your data center is an ideal solution for most businesses in need of data center services. It’s flexible, scalable, and much more cost-effective than building your own data center.

Even so, the lease you sign plays a large role not only in the services you get as a business, but also in the services received by your end user. Knowing that, here are a few things you should ask data center suppliers about their leases when you’re shopping around:

  • What’s behind their SLA: First and foremost, the service-level agreement, or SLA, is critical to knowing what goes into your lease. In your SLA, you’ll find information about service standards (reliability, availability, outages, and response times), as well as remedies for outages (service credits, etc.). Not all SLAs are created equal, so pay close attention to what yours contains. Telx, for example, offers 100% uptime and 100% “on-time” service delivery SLAs—something you may not find with other providers.
  • What exactly you’re paying for: It’s also important to ask what exactly you’re paying for. Is your lease paid per square foot? Is it paid by power consumed over the course of a month? Is it both? Understanding exactly what you’re leasing—whether it’s floor space, room on a rack, or access to power within a given space—is critical to understanding the value you’ll get out of your lease with the data center service provider.
  • The power density of the data center: Identifying the exact power density of the space in your lease (it’s typically measured in W/sq. ft.) will help you understand how efficient the data center is. Higher power density means more efficiency and the ability to make the most out of your leased space, so this is absolutely something you should ask when seeking out a data center service provider.
  • Whether or not they’re carrier-neutral: Finally, be sure to ask the data center service provider you’re seeking to lease from whether or not they’re carrier-neutral. Being limited to one service provider at a data center can greatly limit the value you get out of that lease, and the level of service you’re able to provide to your customer. All of Telx’s facilities are carrier-neutral and provide a vast amount of interconnection options, a key element of driving value in your data center lease.

All four questions above obviously dictate the value that you as a business get out of the data center—but they also affect the end user.

An SLA that doesn’t guarantee a certain level of uptime, for example, could frustrate (or even cause you to lose) customers who count on you for reliability. What you’re paying for and the power density of the data center dictate how much equipment you’re able to house in your leased space, creating (or losing) performance for your end user. And finally, whether or not your data center is carrier-neutral deeply impacts the services you’re able to provide by nature of the fact that competition drives quality in most cases.

The more value you get out of your data center lease, the more value your customer will get—end of story. And Telx provides great cost-efficiency on top of high power density, carrier neutrality, and industry-leading SLAs. If you’d like to learn more about Telx’s data center services leases, feel free to reach out to us via the contact page of our site, or by Facebook or Twitter.

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