The WTIA community has many companies that run large computing and storage infrastructures. Some reside entirely in the cloud, but many will find themselves at one point or another negotiating a contract for colocation services.

I’m frequently engaged by clients to help them fix problems that come up during the term of a colocation contract. A lot of the time these problems can only be fixed by moving the client from one provider to another. This can create a huge inconvenience for the client and in many cases it could have been avoided by doing more diligence up front and negotiating better contracts. This is the first post in a series that will review some of the most common mistakes I see clients make and how to avoid them.

Get A ROFR (Right of First Refusal)

Many clients purchase a relatively small initial deployment with a colocation provider. Over time they know this deployment will grow as they add infrastructure but they aren’t sure exactly when or by how much. So they make their initial purchase and when they need to grow they find out that the space adjacent to them has been taken. This means that they then need to take an alternate space in the facility that is separate from their initial space. This isn’t a huge deal, typically it just represents an inconvenience. However in a worst case scenario the client may need to take space in a completely different facility which creates financial and operational consequences that they didn’t plan for.

This can be avoided by asking the provider to give you a right of first refusal (ROFR) on adjacent space and/or space within the same facility. This means that the provider cannot sell the space to another client without first offering you the ability to take that space. Note that you aren’t required to purchase the space, but at least you have the option.

Check Power Density

In your initial deployment you are likely going to be purchasing a certain amount of power in each rack or cabinet. One issue that I often see is that when an equipment refresh takes place, or when new equipment is being added, the provider can’t accommodate the amount of power that this new equipment will consume. This puts the client in a situation where they have to purchase additional racks or cabinets, or additional square footage in a cage, in order to accommodate the new power requirements.

You won’t have to deal with this if you check on the facility’s power density up front. Make sure that the facility can accommodate future plans to consume larger amounts of power so that you have the flexibility to make changes over time.

Read Referenced Documents

This obviously applies to any contract but it’s something that often slips through the cracks when it comes to colocation. In the terms and conditions of a contract there are often references made to other documents that are only provided to the client upon request. Make sure that you read any referenced documents to ensure that there are no operational or financial terms that may sneak up to bite you later. I have seen situations where annual price increases, right to relocate the client’s infrastructure and other very important items are hidden away in a referenced document.

When you purchase colocation services you are likely going be with that provider for a long time. Start the analysis early and make sure you are clear about your current and future needs. And finally ensure that what they promise you is reflected in writing in the final contract.