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

drmike

100% Tier-1 Gogent
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%.
 

Awmusic12635

Active Member
Verified Provider
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.
 

WSWD

Active Member
Verified Provider
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.
 

ryanarp

Catalyst Host
Verified Provider
How does this impact Catalyst Host? Aren't they with Incero?
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. 
 

concerto49

New Member
Verified Provider
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.
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.
 

clarity

Active Member
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.
Glad to hear this! Love your services!
 

drmike

100% Tier-1 Gogent
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

Your carrier just became your landlord. You no longer have any space/power/bandwidth negotiating power, none. Not happy with zayo bandwidth? Good luck dropping it, they have your assets in their cages. Want another carrier? No problem! But you'll be using zayo waves at $3k/pop/month. Want to move to another colo? Sure, but your bandwidth contract will continue at this location, so make sure to pay up the next x years bandwidth bill before you expect to pickup your gear. I also have 80gig of Zayo bandwidth.

A great "carrier neutral" (albeit not all that well connected, but had the advantage of not being owned by a carrier) just became a corporate colo "carrier neutral" (as long as you like zayo, plus zayo, plus some more zayo, and/or pay zayo to reach other carriers) facility.

I'm still out to lunch as to whether the CoreXchange founders intentionally screwed us (the anchor tenants and such who sung their praises on forums for years and signed decent sized deals) or not. I signed up with CoreXchange based on:
Peter Pathos' reputation
CoreXchange specifically not being owned by a carrier (so they would have no incentive to pressure my high bandwidth business)
my business dealing with The Planet (Softlayer) and Thanh whilst running my last business from 2004-2007

My personal feeling was that we were helping each other grow, by being decent to each other, and there was a lot of good will. My feeling now is that I've been bent over, with no lube, and my pants are down around my ankles.

If Peter Pathos and gang plan on getting into the colo game again, they've got a lot of kissing and making up to do. Call it "just business" if you like but a lot of us in the industry have long memories, and it's a small world.

Good luck to all with your shaftings (they're coming, you just don't realize it yet, Zayo is not a small business colocation operation).

A multi-year, and ?largest? tenant of the Harry Hines ex-CoreXchange datacenter,
Gordon
 
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Echelon

New Member
Verified Provider
Seems more and more transit providers are simply snapping up data centre property. It'll be interesting to see how this all plays out.
 

shovenose

New Member
Verified Provider
Pretty clear reply from the President, they seem to be going the right way with no price increases and keeping it carrier neutral and there sub brand ColoUnlimited will expand locations.

http://www.webhostingtalk.com/showpost.php?p=9040589&postcount=57
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. :)
 
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concerto49

New Member
Verified Provider
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. :)
Incero just wants to increase prices. Problem?
 

Coastercraze

Top Thrill
Verified Provider
Incero just wants to increase prices. Problem?
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.
 

DomainBop

Dormant VPSB Pathogen
Shouldn't increase prices anyways without notifying customers as to why prices are going up.
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).
 
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