IO Blog
New Study Reveals IT Departments at Risk of Overpayment for Cross-Connects
i/o Data Centers, the leading provider of enterprise colocation and data center solutions, today revealed the results of a new internal study focusing on the impact of its free cross-connect policy. Cross-connects, or the ability of colocation and data center customers to connect to telecommunications networks and directly to each other, are frequently a major source of expense for IT departments.
“We’ve never charged for cross-connects, and almost all of our competitors do, but it hasn’t been until this analysis was completed that we realized the magnitude of the impact on IT departments,” said George Slessman, CEO of i/o Data Centers.
The study concluded that i/o Data Centers will save its existing customers more than $25 million over the next three years. Additionally, the study also identified that cross-connect fees make up 22% of competitor revenues. Kindra Martone, Senior Vice President and General Manager of i/o Data Centers, added: “What this means is that IT departments are potentially paying 22% more on average than they should be for data center services.”
The study focused on i/o’s latest data center, i/o PHOENIX, which has been referred to by Data Center Knowledge, a widely read industry blog, as one of the world’s largest data centers.
i/o PHOENIX is a carrier-neutral data center and has access to more than a dozen telecommunications carriers including AboveNet, AGL, Cogent, Level3, Qwest, tw telecom, Telia Sonera, Verizon and XO Communications.
“We don’t believe in toll-boothing our customers”, says Slessman. “We provide a premium offering to our customers, and this includes free cross connects.”
