Tech/Data Center Law
Workable Data Center Pricing Structures
Helping Clients Establish an Effective and Competitive Pricing Environment for their Offering
Data center customers typically reserve space, cooling, and power to ensure they can grow their footprint within that data center. In the past, the traditional model only produced one charge for that infrastructure, regardless of how much the customer has just reserved for later use and how much they’ve actually provisioned for use. This pricing model (billing for that infrastructure regardless of what the customer was actually provisioned for use), often resulted in significant overpayment by the customer.
More recently, data center owners have begun to break the equation into three attributes – more closely ensuring that customers only pay for what is used over time, versus what is allocated. Separating the cost of space provisioning and required heat load capacity from the conditioned power allocation results in both economic efficiency and pricing transparency. Customers can reserve space and cooling but forgo the cost of conditioned power until it is required. Adding in additional services such as network connections and "remote hands" can add profitability, as well as contractual complications, into the overall mix.
We can help our data center clients address these complexities from a legal perspective. Our team will develop suitable contractual terminology to document customer arrangements that are both cost-effective and enforceable. We have specialized in establishing pricing structures that are competitive while capturing the concepts in contract language to ensure effective operational billing. We offer this service to you within a valuable, professional environment.