I was listening to Buckcherry this morning on my way to a client site, so while the title isn’t too crafty, it’s based on a damn good song from a solid band.
I was glad to see someone else in the data center world blogging about the movement downmarket by data center companies. I was smiling as I was reading Compass Data Center’s blog post ‘Everybody in the Pool‘ because I know they get it and have for a long time – a deal is a deal.
What really makes me smile is the reasons given for the big wholesalers going down market – a new exchange, or because they want to mop up some stranded power. That’s how it starts, and that’s why good coke dealers will front a customer a little first. The chances are that the user will get hooked and keep coming back for more – or in this case the mopping up stranded power becomes a full fledged addiction to higher margin revenue.
The issue is that the landlord is now competing for the same deals as tenants, and landlords will ALWAYS have the upper hand on price. So now what?
A deal is a deal – the reality is just settling in for those who don’t watch this stuff as closely as we do. If a deal is a deal then a data center is a data center and landlords with the upper hand on price, just kicked their tenants in the nuts.