Evaluating Colocation Options and Negotiating Financial Terms

Results

Through 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. 

Financial successes:
• 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%

Non-Economic successes
• 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”