Massive Price Increase for X-conns at Telehouse Chelsea, NYC

Patrick W. Gilmore patrick at ianai.net
Mon Sep 17 19:40:38 UTC 2018


On Sep 17, 2018, at 15:08, Ethan O'Toole <telmnstr at 757.org> wrote:
> 
>> If it’s in an interduct by itself, how much would the square footage per
>> month occupied by the average cross connect be worth?
> 
> These big datacenter companies are REITs. Similar to self-storage units and apartment buildings, they exist to extract as much money as possible from the users. Nothing more or nothing less. The price relief only comes when the market is grossly overbuilt and if there is actual competition.

Maybe I am confused, but I thought every for-profit business exists to extract as much money as possible.

When a business gives you something for free, they are expecting something in return - return business, personal data, lower churn, good reviews, customer loyalty, etc. - that they can turn into cash. Any business with little or no competition can be expected to raise prices. This is not exactly new or surprising.

Expecting any for-profit business (all of them, not just REITs) to do less than extract maximum cash is deluding yourself.

-- 
TTFN,
patrick



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