Some BurstNET colocation customers were sent an email this week notifying them that their racks and servers would be relocated to BurstNET’s North Carolina data center, and that starting in their next billing cycle, fees would be increased to account for the rising cost of electricity.
According to the email posted online by several customers, fees now range from $99 per month for a single server to $899 per month for a full rack.
The email notes some of the reasons for the price change: “Over the years the cost for electric has consistently gone up, as well as many other expenses surrounding the COLO business. We, up until now, have been absorbing the cost spikes. Also, BurstNET is one of the only providers that does not require a 36 month contract and does not charge the average $399.00 set up fees.”
BurstNET also mentions investment in the business and preparation for growth as reasons for the changes.
In a phone call with BurstNET’s Keith Vannan, he notes that all its infrastructure from Dunmore, Pa., to North Carolina in an effort to provide customers more reliability, connectivity, and redundancy that wasn’t possible in Pennsylvania.
“Everything we have out of Dunmore is being moved to the new facility out in North Carolina,” he said, noting that dedicated servers, and VPS will be moving this weekend and colocation will be the last to make the move. “It’s really not cost-effective to have a data center in north-east PA between the rate hikes in Pennsylvania in the past 3 or 4 months, plus the additional cost of bandwidth…it’s a lot more than down there.”
He said that most customers understand now that the changes will lead to better service, and the price increase reflects a reasonable increase due to costs associated with providing the service. “If you take the price increase we have, we’re still cheaper than pretty much everyone out there anyways,” he said.
Servers will be moved March 30, 2014 with an expected downtime from 9pm ET March 30 until March 31 at 9am.