Friday, January 14, 2011

How does Equinix command a premium in an commodity Internet Data Center market?

>>How does Equinix command a premium in an otherwise commodity Internet Data Center market?

The short answer is population and stickiness.

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Colocation Stickiness is proportional to the degree of dependence on the colocation interconnections.

Nothing is better than a full mesh of interdependence at an Internet Exchange Point – there is so much value derived from participation there, no one would leave! It is this aligned mutual self-interest that leads to value creation and the ability to command a premium in an otherwise commodity Internet Data Center market.

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