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

Mon Sep 17 21:57:43 UTC 2018

On Sep 17, 2018, at 17:51, Nick Hilliard <nick at foobar.org> wrote:
> Patrick W. Gilmore wrote on 17/09/2018 22:40:
>> Expecting any for-profit business (all of them, not just REITs) to do
>> less than extract maximum cash is deluding yourself.
> oh sure, but price gouging is often bad business practice in the long term.  Humans evolved a strong sense of injustice and have a long memory for people and organisations whom they feel take advantage of them.
> 
> As someone else pointed out, business practices like this can work in a rising market, but not so well when market conditions become difficult and people end up in a position of being able to make a choice between organisations which may have treated them badly in the past and those which have not.

No argument. You cut out part of my reply:

	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.

If you “s/free/free or lower cost/“, it satisfies your statement as well. Every business should be deciding “how much can I make -long term-“, and take into account what you, I, and others have said here. Some will think short term, and (hopefully) the market will punish them over time.

Anyway, I think everyone on the thread agrees. Xconn fees are higher than they should be, but not necessarily higher than the market will bear. Yet.

Besides, once everyone turns up a single 100 Tbps port to PacketFabric (or two for redundancy), xconn fees will be irrelevant. :-)

-- 
TTFN,
patrick