Sharing Services = Big Savngs

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Zeon

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Topic # 89554 5-Sep-2011 10:40

Hey guys,
Last week had a catchup with another IT company who is in our building and they asked about what we did for internet etc. After talking through our various services it became obvious we could both make a MASSIVE (like near $1000 each per month) saving by combining our accounts.

Currently we have:
- $850 a month for 10mbps down/unlimited up fibre connection
- $650 a month for half cabinet at datacenter
- $700 a month for 5mbpsPIR/1mbpsCIR international bandwidth

Currently they have:
- $700 a month for Telstra VDSL (its pay as you go)
- $650 a month for half cabinet at datacenter
- $250 a month for 50GB international

We are both at the Orcon datacenter.

So after going through the numbers, if we combined our accounts we could do the following:

- $1000~/month for 100mbps fibre
- $900 a month for full rack at datacenter
- $1000 a month for 10mbpsPIR/2mbpsCIR international

So from us paying $2200 a month and them paying $1600 the total goes to $2900 a month for both and if we split it down the middle it would be $1450. We also have 10x the download speed and twice the international speed. We are going through the processes with Orcon to do this now.

Anyone ever considered this?

Also BTW if you are in the penrose/Onehunga/mt Wellington/anywhere with a view to the Penrose Business Plaza building at 45 O'Rorke road we are also open to the idea of putting Bullet M5s up for people who want 100mbps best effort service for a relatively cheap monthly price, drop me a PM if interested.

tonyhughes

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Reply # 516735 5-Sep-2011 10:43

Absolutely fantastic idea, but with caveats.

If/when things turn to crap, someone may throw their toys and cause problems for the other. (And there are loads of scenarios that could invoke issues).

If I was paying $1600 a month and could go down to $1450 by sharing such vital services, there is no way in hell that I would.

If I was paying $2200 a month and could go down to $1450, I would at least consider it.

Beccara

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Reply # 516743 5-Sep-2011 10:57

The risk of exposure is pretty high, One of the two companies is going to have to sign contracts which means you would be stuck with a $2900/mth bill if the other party bails out

Most problems are the result of previous solutions...

All comment's I make are my own personal opinion and do not in any way, shape or form reflect the views of current or former employers unless specifically stated

Ragnor

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Reply # 516747 5-Sep-2011 11:00

We used to share 100Mbit with a 10Mbit backup/failover fibre connection with another company on our floor, worked pretty well.

QoS rules are an important thing to agree on, also which company will be the account holder and be the "owner" of other resources like ip address ranges etc. The non owner will need/want a solid contract with the other for services.

Zeon

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Reply # 516786 5-Sep-2011 12:42

Beccara: The risk of exposure is pretty high, One of the two companies is going to have to sign contracts which means you would be stuck with a $2900/mth bill if the other party bails out

True, they are already our supplier for a bunch of other stuff including IBM/MS licensing which is probably over 30k+ now so we have had a good relationship with them for more than a year. Our contract for the colocation is due to expire in February (there's already has) and the fibre in October 2012 so its not too long. I think they will take over the account and we'll enter a contract with them.

Tonyhughes: If I was paying $1600 a month and could go down to $1450 by sharing such vital services, there is no way in hell that I would.

If I was paying $2200 a month and could go down to $1450, I would at least consider it.

Remember the other company is getting an upgrade to 100mbps fibre (as are we) and an upgrade in international bandwidth speeds which they were thinking of paying themselves. So in reality their cost savings are going to be high or at least look at it as a huge improvement in speed and a cost saving.

If we each were to get the same services we would both be paying $2650 a month so we each save basically $1000 per month.

But yes there definitely is some risk but at the same time I think because of our past good relationship with them I think it should work out. I do question Orcon's pricing a bit though as while I understand its normal to have a volume discount the disparity in pricing between their half rack/full rack colo and international bandwidth is huge.