VNOC Survey Notes Higher Cost for Server Migration, Rack Space

📅 October 17, 2002 - VNOC Space (vnocspace.com), a network operation center services providers, conducted its first quarterly survey of its customers and found that the average cost of migration and rack space in carrier-neutral co-location facilities worldwide has increased to almost $1,000. World rack prices have risen by over 30 per cent since the company began monitoring prices in December 2000.

The prices for migration services and rack space though out the world jumped in price an average of 12 per cent: rack space in the Asia-Pacific region is twice as expensive than in Europe, and 72 per cent higher than the U.S. Previously, VNOC Space had seen the price of co-location rise fairly steadily worldwide.
"While we are now seeing more stable pricing and in even some cases a drop across North America and Europe than we have in the past, the growing number of facilities in the Asia-Pacific region is having a significant impact on the average price worldwide," said Martin Essenburg, president and CEO of VNOC Space Inc.
"An element of this price difference can definitely be attributed to the variety of models across the three regions. The Asia-Pacific region has a large proportion of smaller high value-add, service-based offerings which cost more per rack than the larger, wholesale-based facilities available in Europe and the U.S.," he continued.
U.S. price rises have outstripped those in Europe over the past 15 months, with a rack now costing an average of $150 more in the U.S., according to VNOC Space, which operates one of the world's largest marketplace for co-location. However, European facilities are still around a third larger than in the U.S., and two-thirds larger than Asia-Pacific facilities.
"This gap has closed in size and is far less significant. As operators extend their networks and increase activity in tier two and three markets, as well as the local loop, we'll see an increase in smaller companies being migrated to state of the art facilities," said Essenburg. "If this trend continues we may see the average size of customer listed on the VNOC Space co-location floor in the U.S. increase over the next year."
VNOC Space acts as a virtual broker for carrier-neutral data services and server migration.