CoreXchange Sold Yesterday to Zayo / AboveNet / zColo - Today Incero Hikes Prices

Discussion in 'Industry News' started by drmike, Mar 7, 2014.

  1. drmike

    drmike 100% Tier-1 Gogent

    8,573
    2,709
    May 13, 2013
    So Dallas, Texas, colo facility CoreXchange has been sold to Zayo Group which owns AboveNet most notably. See: http://www.zayo.com/news/

    CoreXchange has been a popular colo facility for many bargain priced resellers and offered reasonable dedicated server rentals directly.

    Today, following this acquisition, popular bargain server rental company Incero, who is housed within the former CoreXchange raised rates on services 10-70%.
     
  2. Awmusic12635

    Awmusic12635 Active Member Verified Provider

    327
    92
    May 3, 2013
    It would not be wrong to assume that this had some effect on Incero and most likely was the reason for the increase. Would help explain the burstnet situation as well.
     
    notFound and drmike like this.
  3. drmike

    drmike 100% Tier-1 Gogent

    8,573
    2,709
    May 13, 2013
    I ahh, agree with Fliphost's sentiments.   That's how it smells to me also.
     
  4. DomainBop

    DomainBop Dormant VPSB Pathogen

    2,260
    2,190
    Oct 11, 2013
    Last edited by a moderator: Mar 7, 2014
    ryanarp and Nett like this.
  5. Patrick

    Patrick INIZ.COM Verified Provider

    263
    85
    May 16, 2013
    Last edited by a moderator: Mar 7, 2014
    DomainBop likes this.
  6. clarity

    clarity Active Member

    351
    125
    May 15, 2013
    How does this impact Catalyst Host? Aren't they with Incero?
     
  7. concerto49

    concerto49 New Member Verified Provider

    960
    200
    May 5, 2013
    Incero sent out price increase before the sale was announced just FYI.
     
  8. WSWD

    WSWD Active Member Verified Provider

    218
    104
    May 30, 2013
    We are looking at a pretty decent increase from this. 

    What bothers me most, is that there were 3 free things being offered by Incero to "make up" for the increase.

    1)  2TB drive on one server

    2)  Free NAS space

    3)  Free upgrade to 30TB of bandwidth

    Unfortunately, all our servers are full as far as drive bays are concerned (2TB is just a backup drive or such anyway...can't use it for hosting), we already have a NAS account, and have been paying for 30TB of bandwidth on the servers since we got them. 

    So the low-paying budget clients get all these upgrades, we get nothing.  That one left a bad taste in my mouth.  The 10% increase isn't terrible.  But the no upgrades, and having a promotional server raised $30/mo. irritates me.  That combined with the fact that this literally happened overnight with absolutely no notice, makes the whole thing a very bad experience. 

    Not planning on pulling a Burst and cancelling our servers there, but it's pretty unlikely that we'll be adding any more servers.  Can't really afford another overnight increase.  Never had a provider raise prices on existing clients.  Quadranet and the other folks we use would very likely never do this.  They certainly haven't yet, as long as we've been with them.
     
  9. Nett

    Nett Article Submitter Verified Provider

    761
    189
    Nov 27, 2013
    Expecting to pay more for VPS'es at Incero...
     
  10. ryanarp

    ryanarp Catalyst Host Verified Provider

    164
    72
    May 9, 2013
    Other than the 9.5% price increase on our overhead it really doesn't have any effect on us. We did a price increase almost 2 years ago that far exceeded this percentage that was closer to 25% to account for the higher priced quality servers and bandwidth that Incero provides. Some people will remember this price increase. However for us to provide the product that we desired for our clients it had to be done. Coming from FDC Denver in our early days it made sense that if we wanted to provide a quality product we couldn't sell at bottom of the barrel prices. So we have pretty much set ourselves in a position to grow with Incero. The most important thing to me is uptime and quality bandwidth and well Incero just can't be beat in my opinion. Since I have been a customer of Incero for almost 2 years now, I have seen them grow their network from 10gig to 80gig capacity. i don't think it is hidden knowledge that I work for Incero. So I won't hide that here. However this statement is from Catalyst Host as a Customer. 
     
  11. concerto49

    concerto49 New Member Verified Provider

    960
    200
    May 5, 2013
    Definitely. We price our products higher than others to buffer for increases year to year. Colocation has a component that says costs will increase per year according to GDP and other things. It's the norm. I don't see why there should be such a huge jump unless products have been priced so low that any subtle wind knocks it down.

    Rather charge a bit more at the start than to upset customers if you ask me.
     
    Francisco likes this.
  12. clarity

    clarity Active Member

    351
    125
    May 15, 2013
    Glad to hear this! Love your services!
     
    HalfEatenPie and ryanarp like this.
  13. drmike

    drmike 100% Tier-1 Gogent

    8,573
    2,709
    May 13, 2013
    Normally I don't wholesale repost other folks comments from other forums, but on this one, ya, I must...

    Gordon, the owner of Incero unzips on this one... Speaking about this CoreXchange buyout and what it has done to him and his customers...

    Found over on WHT:

    http://www.webhostingtalk.com/showpost.php?p=9039987&postcount=40

     
    Last edited by a moderator: Mar 7, 2014
    ryanarp likes this.
  14. Virtovo

    Virtovo New Member Verified Provider

    362
    149
    Dec 19, 2013
    Does anyone know what's happening with their additional planned Dallas DC?
     
  15. Echelon

    Echelon New Member Verified Provider

    88
    17
    Aug 11, 2013
    Seems more and more transit providers are simply snapping up data centre property. It'll be interesting to see how this all plays out.
     
  16. Patrick

    Patrick INIZ.COM Verified Provider

    263
    85
    May 16, 2013
  17. shovenose

    shovenose New Member Verified Provider

    819
    101
    May 13, 2013
    If they're not incrasing prices then what is Incero's problem? I don't know what is going on here but if the price of Colocation is not going up then Incero has no problemm, and these price increases are nuts.

    Proud to say that I typed that entire post without looking at my keyboard. :)
     
    Last edited by a moderator: Mar 8, 2014
  18. concerto49

    concerto49 New Member Verified Provider

    960
    200
    May 5, 2013
    Incero just wants to increase prices. Problem?
     
  19. Coastercraze

    Coastercraze Top Thrill Verified Provider

    435
    97
    Mar 28, 2013
    Nah just shows instability in their business model. Shouldn't increase prices anyways without notifying customers as to why prices are going up. (You need to have a good reason to justify more than 10% increase) He must not have had a contract with CoreXchange for some reason.
     
  20. DomainBop

    DomainBop Dormant VPSB Pathogen

    2,260
    2,190
    Oct 11, 2013
    When was the last time your cable or electric company, or local chain store grocery store gave you a reason why they were jacking up the prices for the 10th time in the past year? :)

    Incero should have given more notice, and they should not have repriced invoices that had already been issued, but they are perfectly justified in raising prices if they see a need to raise them (and by the same token their customers are perfectly justified in finding a new provider if they feel the price hike is excessive).