Data Center Installation Costs – Often Overlooked
When choosing a data center solution, you’ll need to calculate the Total “colocation” Costs of Occupancy (TCO). The TCO must include both the monthly recurring costs (MRC) and the non-recurring costs (NRC) of your data center solution.
Your budget will determine how much redundancy you can afford to build into the solution. Typically, the more redundant the environment is, the more expensive it will be on a monthly basis. However, many companies are surprised to find their upfront data center NRC costs are much higher than they anticipated – often in the multiple hundreds of thousands of dollars.
Data Center NRC and MRC Charges
The NRC cost and future MRC costs should fit within your allocated data center budget. There are typically two types of data center expenses:
- Non-Recurring Costs – a one-time capital resource cost that includes cage materials, door security equipment, migration charges, carrier connection costs, equipment purchases, parts upgrades and refreshing equipment, labor for installation, setup fees, and other one-time charges.
- Monthly Recurring Costs – recurring expenses that include the cost of space (per rack or per square foot cage costs), power costs, the cost of bandwidth, cross connect fees to ISPs or Carriers or NSPs, managed services, additional costs for remote hands services, future space reservations, taxes, and insurance.