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EXTENDING THE DATA CENTER FOR ROCK BOTTOM IP PRICING The typical method of bringing IP bandwidth to a business customer is to ask for a loop and port to be delivered to the customer's address. The carrier delivers a "loop" which provides transport such as DS3/OC3/Metro Ethernet/Wave at a variable cost and also a price for the bandwidth associated with the "port". Typically using this method locks the customer into a 2-3 year term contract due to the CapEx related to the fiber transport. If the customer is not satisfied with the carrier's IP service, they have to wait out the contract before making a change. Also the pricing for bandwidth tends to be in the $3 per meg range, which can be expensive if they are looking for 1-10 Gigabit speeds. [http://gallery.mailchimp.com/797bc42d87bdd61c2cd6b67e0/images/b055de0e-3abc-48bc-b894-6dc5bb31f304.jpg] The data center method that we think has quite a few upsides is to deliver the transport as a separate service by delivering the Ethernet transport to a "data center" or "carrier hotel" which has a variety of carriers available who can provide IP bandwidth at super low prices by using fiber cross connects. For instance, Hurricane and Cogent offer IP bandwidth under $1 per meg. [http://gallery.mailchimp.com/797bc42d87bdd61c2cd6b67e0/images/15b11131-2ee0-497e-bc0e-c85b6ba1149d.jpg] There are hundreds of data centers in the United States so choosing the best one can be a challenge. The data center should be within a general region of the United States since distance can affect ping times if you are on opposite sides of the country. Also you may need to dispatch a technician to the data center and that could be another consideration. We find that the pricing for Gigabit Wavelength service can be very good with CenturyLink if we connect to a data center that is outside the "lata" but in the same "region" of the country. Comcast Ethernet private line is a good choice for "Intra-lata" transport. Another consideration is if the data center is "on-net" for the transport provider. CenturyLink has 250 data centers that are considered on-net which means they do not charge a "loop' fee and this really lowers the cost of the circuit. For example, we are getting 1GIG circuits as low as $1400 per month from the customer's premise to a data center in another state/lata that is on the data center on-net list. CenturyLink pricing is less expensive going outside the lata because it is then considered an unregulated service. Finally we need to think about the possibility of getting co-location space to locate a router since this would allow the customer to pull multiple IP feeds so they can use "BGP" routing. Also, if the data center has a "peering exchange" in the building, they can offload traffic to Netflix and Hulu. The pricing for co-location and cross connects can affect your overall pricing so that should be considered as well. We like working with companies such as Mammoth Networks<http://www.mammothnetworks.com/> since they can help take the pain out of this process by providing a 4U rack space for $290 per month and also provide cross-connects to the IP carriers or offer their own blended bandwidth as low as $1 per meg. Providing blended bandwidth provides an extra layer of redundancy for the customer and also eliminates out-bound cross connect charges. [http://gallery.mailchimp.com/797bc42d87bdd61c2cd6b67e0/images/9e9c9044-16be-4b3d-a301-c2f0bdef4e8d.jpg] SUMMARY: Provisioning transport to a large data center can get business customers, ISP's, WISP's, etc. the very best IP pricing, multiple carriers, peering, and flexibility for future growth. Our company (CTG3<http://www.ctg3.com/>) are authorized agents for CenturyLink, Comcast, and Mammoth Networks so we can do all the leg work for you. We also host CarrierFinder<http://www.carrierfinder.net/> which can make it easy to locate data centers and more. Getting pricing is easy (just not very fast). All you have to do is send a request to [email protected]<mailto:[email protected]> or via www.carrierfinder.net<http://www.carrierfinder.net/> Dave Laskowski -CTG3 Senior Partner Voice: (425) 406-6199 Email: [email protected]<mailto:[email protected]> LinkedIn: http://www.linkedin.com/in/davelaskowski Web: www.ctg3.com<http://www.ctg3.com/> PS: For fastest results always send quote request to: [email protected]<mailto:[email protected]> or request via www.carrierfinder.net<http://www.carrierfinder.net/>
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