Reduce server housing costs and offer better prices

Server housing and its costs - what influences the price?

The market for server housing and colocation is highly competitive. In addition, the requirements of customers based on the size of their own IT infrastructure are constantly increasing. As a server housing provider, you need competitive market prices. However, you can only achieve this goal if you reduce your server housing costs. The experts at Cadolto Datacenter will show you how to best influence the receipts/expenditure ratio and to assert yourself on the market.

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How are server housing prices calculated?

Server housing prices in Germany vary greatly. Ranging from small two-digit sums to several hundred euros, server housing costs ultimately have to be paid for by the end user. Needless to say, prices depend on what server housing providers offer their customers. The usual services that have a direct impact on prices include:

Size and capacity

Cheaper server housing solutions generally offer less rack space, such as one rack unit (1RU). Higher-priced options might offer more storage space or even entire racks.

Power supply and cooling

Offers in the lower price segment often come without emergency power supply and cooling systems. More expensive server housing providers usually offer newer and more environmentally friendly solutions, as the data centres are more energy efficient. They also boast an uninterruptible power supply (UPS) and enhanced cooling. This is particularly important for high-performance servers or servers that need to guarantee a high level of availability.

Bandwidth and network access

For applications with a high throughput of data or low latency, higher priced offerings can provide a higher bandwidth and better network connections.

Security and surveillance

More expensive server housing solutions often ensure more rigorous security measures, such as enhanced physical security, monitoring and access controls.

Local presence

Higher-priced offerings might come with detailed support and service level agreements (SLAs) that guarantee more uptime and faster problem solving.

Additional services

Other offerings, such as managed services, backups, disaster recovery and further specialised IT services, can also lead to greater server housing costs for the end user.

What influences server housing costs?

To develop a successful pricing policy focused on a target market, you need to minimise your server housing costs. You can, of course, also improve your offer - but that does not alter the fact that you need to guarantee a better price than your competitors. The major factors for a server housing and its costs are:

Infrastructure, equipment and maintenance

Setting up a state-of-the-art data centre demands a considerable amount of investment in assets and personnel. This includes the costs of purchasing and installing buildings, server racks, cable systems, power supply systems (including UPS systems), cooling systems and security systems.

Power consumption and cooling

Operating servers requires a lot of energy, and the associated electricity costs are often one of the biggest cost items for server housing providers. Above all, the electricity costs for cooling are very high, especially when it comes to the energy-intensive task of maintaining the ideal temperatures for servers.

Network and Internet connection

Data centres require a high-quality network infrastructure and a broadband Internet connection utilising fibre optic technology. Setting up and maintaining these connections, especially for high bandwidths and low latency, can incur significant costs or the final decision about the location depends on the availability of the bandwidth.

Security and surveillance

Physical and network-based security measures, such as surveillance cameras, access control systems, fire protection systems and cyber security solutions, are absolutely imperative for a data centre and obviously result in high server housing costs.

Other cost factors may be:

Customer support
Location of the data centre
Backup and redundancy systems
Software licences and certifications
Adherence to standards and data privacy acts

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How can server housing costs be reduced?

The modular building techniques employed by Cadolto Datacenter enable fast and effective construction and expansion. This means data centres can be completed much faster than with traditional building methods. Both the initial investment and the building and operating costs can be significantly reduced using this method. Since all Cadolto Datacenter products are also designed for maximum energy efficiency in terms of climate, components and peripherals. A data centre can be expanded and new capacity added in just 72 hours using a Cadolto Datacenter module, even when customer demand is sky high. This has no impact whatsoever on ongoing operations.

Cadolto Datacenter modules also strike a chord in terms of energy efficiency. Server housing costs can be slashed by drastically reducing the electricity bill. Moreover, our products use advanced cooling systems, such as the indirect free adiabatic cooling system. They not only offer a great way to reduce energy consumption but are also a good option for providing your customers with an attractive range of services and low server housing prices.

If there is a lack of funds to respond to the rapidly growing demand for capacity, Cadolto Datacenter offers a solution with CDC CAPEX. You can expand your data centre by renting modules. This means you can immediately offer your customers new space for servers, racks and other IT infrastructures.

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