I’m pleased to report that we’ve closed our first colocation deal with LDeX in their north London facility near Staples Corner this month.
I think this is a really good transaction for both parties – the buyer got what is in our view a terrific price for 4 x 16Amps cabinets on a ten year contract – which of course is also great for LDeX as supplier to have such a long term commitment. Furthermore we believe this client will also pull yet more networks into the site, so developing LDeX’s carrier list.
The buyer in this case is a wholesale voice carrier who needed a good value solution ideally based near to their north London offices, yet who also needed to connect into one of the key Docklands network hubs where they still run traditional TDM interconnects with a wide variety of carrier partners. The LDeX solution therefore included a 1Gbs interconnect back into Docklands as well as local internet breakout.
More London colocation options = more ability to play the market!
I think this is a great example of a ‘two-site’ strategy which takes advantage of the growing range of options for retail buyers in the London colocation market – house the bulk of your kilowatts in locations where pricing can be so much more competitive and simply keep as small a point of presence as you can get away with in the highly connected network ecosystems, where of course the price per kilowatt is significantly dearer. The colocation pricing our client achieved with LDeX was about half the price they’d have had to pay in a Docklands based network ecosystem, which over even four racks adds up to a significant monthly saving, yet they still maintain their presence in the hub sites to connect with their key carrier partners.
A point of presence in a key network hub may only comprise a switch or router and we often source units as small as a ¼ rack to allow clients to make such small scale deployments.
Understanding customers’ needs and making the right introductions is Colo-X’s value add to the process. With over 15 years’ experience in closing colocation deals together with our deep understanding of all the retail colocation facilities in the London and UK market, we can suggest and propose solutions across the whole market. Our regular deal flow ensures our knowledge of what’s available and what it will cost can save a prospective buyer quite some time in evaluating options together with the associated commercials aspects. We can usually provide all this through a single phone call.