Gartner Research

A Concise Guide to Negotiating Colocation Renewals

Published: 19 October 2015

ID: G00292992

Analyst(s): Bob Gill

Summary

Colocation contracts are generally expensive, long-term commitments. Negotiating contract renewals using these best practices can help IT leaders, data center planners and procurement teams pay only for what they need and position themselves for cloud and digital business.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Step One — Investigate Switching or Negotiate a Renewal
    • Lead Time: One Year
    • Investigate
  • Step Two — Is the Quantity or Capacity Allocated (and Paid for) Correct?
  • Step Three — Is the Price per Unit Reasonable?
  • Step Four — What Are Other Negotiable Elements?
    • Capacity Expansion — Room to Grow
    • Capacity Contraction — Shedding Unneeded Capacity
    • Annual Rate Escalation

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