UII UPDATE 389 | JULY 2025
Intelligence Update
Retail vs wholesale: finding the right colo pricing model
15 Jul 2025
5 min read
Colocation providers may offer two pricing and packaging models to sell similar products and capabilities. In both models, customers purchase space, power and services. However, the method of purchase differs.
In a retail model, customers purchase a small quantity of space and power, usually by the rack or a fraction of a rack. The colocation provider standardizes contracts, pricing and capabilities — the cost and complexity of delivering to a customer’s precise requirements are not justified, considering the relatively small contract value.
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