Blog Series #6: How to Leverage a Carrier Neutral Hotel to Grow your Business
Roger Willey, VP of Sales and Marketing for Nebraska Data Centers recently shared his perspective on the best strategies to leverage a carrier neutral hotel at the Fall INCOMPAS show. This blog series is an extension of that presentation.
Session 6: Your Advantages at a Carrier Neutral Hotel
If you are still with me, and reading the sixth release of this blog series, I will assume that you have bought into at least a few of the market impact trends that support having a presence in a carrier neutral hotel. But at the very least, it is hard to argue against the fact that businesses are migrating to data centers and that “cloud” and hosted applications have changed the landscape and connectivity reliant companies (In fact, I think the migration is in it’s infancy at this point). So, let’s get to the payoff points of this series. What is in it for the carrier and why should you consider a presence in a carrier neutral hotel?
I once had a carrier contact tell me that he wasn’t excited that we were growing to over 40 carriers. He said it just brought in competition and lowered his pricing. I get that reaction, everyone would prefer to be the only game in town. But, that just isn’t reality. Let me take you through the advantages that our carrier partners have experienced…..even that person that questioned our expanded carrier base.
Aggregated Prospect Base – Every time we meet with a new prospect, we distribute our carrier list. Free advertising and in many cases, a prospect that would not have chosen your network had they remained within a private data center. And, there is one more critical benefit. Most of our customers are “connectivity enthused”. There is a reason they are in the facility….they need connectivity and likely, lots of it.
Must be Present to Win – For all the reasons outlined in the first point, if you are not in the carrier neutral hotel, then you won’t get that customer. Having a presence in a strategically placed carrier neutral hotel offers potential for incremental revenue beyond what your current market will generate.
Expand Network Reach – A presence in a carrier neutral hotel offers an opportunity to expand your network and to be relevant within other parts of the country. Assume that your fiber network is in the southeast. A presence in a carrier neutral hotel, in the center point of the US (shameless plug) allows you to be easily and efficiently accessible for a business on the west coast.
Add Value for Existing Customers – If you completed a survey of your existing customers, how many could benefit if you could provide “on-net” connections to other parts of the world your network can’t reach today? If you agree with my earlier statement that in today’s network architecture, latency is king, then doing what you can to provide your customers with the most direct routes to their other locations is critical. A presence in a carrier neutral hotel carries some marketing clout, and something you may be able to promote as a unique value proposition.
Network Benefits – We try to encourage carriers considering a presence in our hotel to not only look at revenue opportunity, but also network benefits. In some cases, the cost savings of offloading traffic, the ability to purchase wholesale IP bandwidth, or joining a peering exchange has offset the monthly recurring costs for the cabinet space. In addition, the advantages of being where carriers meet can offer other network performance advantages.
Having a presence in a carrier neutral hotel isn’t the right decision in every case. But, there are many ways to leverage the facility to take advantage of the market trends and expand your market. And considering how the market is consolidating, not being where the action is, may limit your growth and value.
Next Series Release: How to Leverage Carrier Neutral Hotels to Grow Your Business