New Study Reveals IT Departments at Risk of Overpayment for Cross-Connects
IO Data Centers (“IO”), 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 are frequently a major source of expense for IT departments.
The study concluded that IO will save its existing customers more than $25 million over the next three years. Additionally, the study identified that cross-connect fees make up a substantial portion of competitor revenues. Kindra Martone, Senior Vice President and General Manager of IO, added: “What this means is that IT departments are potentially paying more than they should be for data center services.”
The study focused on IO’s flagship data center, IO PHOENIX, which has been referred to by Data Center Knowledge, a widely read industry blog, as one of the world’s largest data centers. IO PHOENIX is a carrier-neutral data center and features two Meet-Me-rooms. More than a dozen telecommunications carriers including AT&T, Verizon Business, Level3, TeliaSonera, AboveNet, AGL, Cogent, Qwest, tw telecom, and XO Communications pull fiber into the data center diversely.
John “Joc” Jacquay, Senior Vice President of Sales and Marketing for AboveNet sees the benefits of IO’s free cross connects. “AboveNet provides high bandwidth connectivity solutions for its customers, many of them residing at IO. AboveNet and our customers benefit greatly from not being charged for cross-connects. It is a huge savings. Our customers typically utilize multiple network services, including transit, long haul transport and metro connectivity. The cost of cross connects can really start to add up.”
Since June 2007, IO has added, on average, close to 100 service provider to enterprise cross-connects per month – a number that is increasing each month as the company adds new customers.
“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 IO. “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.”
Founded in 2007, IO provides the data center as a service @scale™. IO internet data centers are engineered to deliver the optimal data center capacity, security, network and cloud inter-connectivity for mission critical applications of any scale. IO operates large data center campuses, featuring over 2 million square feet, hundreds of networks and 300 MWs in North America and Singapore. For more than a decade, IO has earned the trust of the most demanding technology users by delivering the data center at scale to digital-first enterprises, cloud companies, hyperscale service providers, governments and businesses worldwide. To learn more about IO @scale™, visit io.com.
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