Evaluating Colocation Options and Negotiating Financial Terms
- 1,500 sq. ft.
- Transaction Management
- Jason Jones
client objectives and resultsSee more success stories
Client ObjectivesThe company was facing a data center contract expiration and wanted to use the opportunity to evaluate the market for creative alternatives. As Sharecare’s platform evolves, it requires less space in physical data centers. Therefore, it sought to optimize its data center environment by downsizing one of its two data centers while reducing costs and improving contract terms at both facilities.
ResultsThrough detailed analysis of the current and future need for space and power, Cresa and the Infrastructure team at Sharecare created a plan to evaluate other colocation options and negotiate aggressive financial terms. In the end, Sharecare decided that the existing facility, with modifications to the footprint, power and network connectivity would best support the technology environment and the company’s future. Sharecare was able to save on relocation costs and monthly charges by renewing its contract with the incumbent colocation provider.
• Negotiations saved over $830,000
• Reduced existing total monthly charge by over 50%
• Reduced square footage in the primary data center by 50%
• Reduced contracted power by 40%
• 6-month grace period to reduce square footage
• Can reduce space and power by 10% within 6 months
• Extended termination “wind-down” period by 700%
• Right to terminate for power failure greater than 24 hours or 3 chronic SLA violations
• Removed landlord right to relocate Sharecare to another cage
• Gained SLA requirement for zero minutes of downtime during periods of “maintenance”
I was extremely impressed with Cresa's ability to guide and participate in the negotiation process, meeting our needs and bringing us significant value by saving us time and money. Because of this, I look for additional opportunities for us to work together and I appreciate their dedication, due diligence and advocacy at the highest level.Dan Agronow | CTO