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Rent to own servers... Who offers?
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Rent to own servers... Who offers?

pubcrawlerpubcrawler Banned
edited December 2012 in General

Looking for more companies that are offering reasonably priced rent to own servers (RTO).

Currently am aware of Dacentec and that's about it.

Who else is offering such?

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Comments

  • I got up to $225/mo pretty quick on ColoUnlimited but 24 months RTO is interesting.

  • Yeah I like Colounlimited, but the pricing isn't so great. Definitely not lowend pricing.

    Bigger issue is with cash outlay like that is they selling you a 100Mbps package. I want Gbit and some usage cap. Too easy to saturate a 100Mbps connection doing nothing real when you just need to transfer something now.

  • I am aware ColoCrossing and Quadranet offer RTO

  • Who not Dacentec? Or you are just looking for diversification?

  • Why rto? You are paying more for less and after that 2 year contract, you are going to need new hardwares like HD and mobos for replacement parts and remote cost for an old box. Either buy full or rent. RTO isn't a good business opportunity.

  • "RTO isn't a good business opportunity."

    I learned that when I did a 24-month RTO on a couple of Cobalt RaQ2's and RaQ3's I used for backups and development at Host2Own (now Cari.net).

  • I kind of wonder that about RTO. During the lease period, the provider will replace your busted hardware. If you own, I believe you have to find a way to replace your own busted hardware.

  • CVPS_ChrisCVPS_Chris Member, Patron Provider

    We offer RTO

  • @CVPS_Chris I also would like to know what you offer :)

  • PacketVMPacketVM Member, Host Rep

    Dacentec. Fantastic service, servers and support. @jarland would vouch too.

  • I vouch for Dacentec also, paid for my 3rd month and planning my 2nd RTO server.

    Yeah I'd be interested in CVPS's RTO also.

    24 months RTO does seem a bit odd but if it was brand new hardware, or even some like current - 24 months old, would not seem bad. At minimum, if Dacentec sends you that Supermicro or HP L5420, you can sell it on eBay or wherever as "pulled from a working environment"

  • @bamn said: I vouch for Dacentec also

    Yeah, I do too, I started out with my first server from them about a week ago. I needed help with something they had to fix and the staff was on the ball and worked very quickly to have a kvm on the box too.

    The prices and the customer service at Dacentec really have made me impressed. I got the HP server and it is working quite well so far.

  • pubcrawlerpubcrawler Banned
    edited December 2012

    @zhuanyi, I have a Dacentec RTO. Doing setup on it right now actually.

    Looking for other networks and diversity.

    I like the RTO model. Facility maintains the gear on the startup side and over the contract. Ideally we grow and fill the server (max RAM, max drives, etc.). Controls cash outlay buying and shipping gear (we've had multiple servers damaged between shipping and racking over the years).

    RTO server can linger as a colo machine after the contract time and other RTO's where suitable brought online.

    It has advantages and obviously long term disadvantages. But on the disadvantage side, most of the issues are common across all servers of any age (fan failure, disk replacement).

  • Thanks @miTgiB, Quadranet seems to be pricey. At least their public numbers are.

    Colocrossing I suspect is going to be way above lowend prices too.

  • EasedEased Member, Host Rep

    24 months RTO!? You'd be better off buying your own server outright.

    Lets do the math...
    For a server with an single Quad Xeon E3-1230v2 (3.3GHz) and 8GB you'd be spending about $1500. (before colo + shipping + tax)
    Therefor $1500 / 12 mo = $125/mth just to break even.

    If you paid a company to RTO a server over 24 months, they'd be making back the total cost of the server, x 2.

    From a business standpoint server RTO is used to sell EOL gear and profit at the same time. WIN - WIN.

    Unless you are getting a deal on a half decent server and the RTO agreement is for 12 months or less, I would start considering other options.

  • gameongameon Member
    edited December 2012

    @Eased does that calculation of urs include bandwidth/electricty / ip block cost etc coming as a package with RTO ?

  • EasedEased Member, Host Rep

    No, for just the server hardware alone.

    Your server provider already has the rack paid off, they don't pay a per server bandwidth/elec/ip pricing, unless your with a very small fish. Your just getting a share of the pie of the rack's resources.

    At the end of your RTO agreement regardless you'd get stuck with having to colo the server as well as shipping the server if you wanted to move to another DC/provider. So would you really be saving money in the end?

    Owning your own hardware is the less expensive way to go long-term if you can afford the capital.

  • @Eased said: Owning your own hardware is the less expensive way to go long-term if you can afford the capital.

    Agree to that , but for someone starting out RTO seems to be a good deal . I mean look at Dacentec's offerings defnitly tempting

  • What Dacentec offers is more than suitable for what I need. The 5420 CPUs are more than capable workhorses.

    Only minor gotcha is the RAM (16GB limit). That's the smallest box I deploy and ceiling is nearing, so 24-64GB of RAM boxes are becoming more of a necessity.

    As far as economics of RTO for end customer, certainly better cash flow position with RTO up front. Even with the 5420 servers looking at $250 for a random used model + harddrive(s) = $400-$600 + shipping to the colo facility. = $500-700 upfront + time. (I expect Dacentec is buying clean off leases and testing/repairing those before deploying)

    So, cost of DIY upfront, that's in the neighborhood of 4-6 months of what Dacentec charges depending on config.

    If you look at the low end price point @ Dacentec it's $65 a month or $780 a year. Flat colo there is $30 a month and $10 more for extra 1A of power = $40 x 12 = $480. Add that $480 to $500-700 for DIY server = $980-1180.

    So $780 RTO wins.

    I was more interested in colo'ing when I was sending out a few SSDs per server and the price of those was much higher.

  • pubcrawlerpubcrawler Banned
    edited December 2012

    Just re-ran speed test from Dacentec to Fiberhub
    Test 1: 18.7M/s
    Test 2: scrapped it 600K/s sustained (?!?!)
    Test 3: 16.8M/s
    Test 4: 18.7M/s

    That's not bad nearly coast to coast. Some of the fastest times I've seen :)

    Now who does RTO or decent affordable dedicated servers at Fiberhub?

  • @pubcrawler said: Now who does RTO or decent affordable dedicated servers at Fiberhub?

    http://www.versaweb.com/ - run by the same people @ Fiberhub I think.

  • rackmountsetc.com has a lease program which is pretty much similar. At the end of the term, you could buy the server if you wanted.

  • Rackmountsetc.com looks like a specials website @Coastercraze --- from a bunch of providers. Prices seem really high.

    Thanks @concerto49. Versa's prices look high at least on website. But will search for their specials :)

  • CVPS_ChrisCVPS_Chris Member, Patron Provider

    @jack, @Stablevds, @bamn

    We can offer whatever the customer needs. Just give us the hardware etc. and I can give you a quote. Just PM me

    Regards

    Chris

  • Most providers don't offer this because they lease the servers for 24-36 months. Technically they are not allowed to sell hardware they don't "own" until they own it. The gamble for the host is that the leasing company does not get wind of what they are doing. With that said, you are better off leasing your own new hardware and colocating somewhere instead of rent to own. 2-3 year lease is pretty cheap right now and colo for a 1U can be had for $50-$60 a month.

  • agree @Everyday.

    The downside to colo though of 1U or a few is that facilities hands on won't have spare parts. Finding more frequently facilities seem to leave you drowning in a creek when say a 1U high RPM fan goes crazy. Doesn't work out to stash spares as I expect they charge for that also (would have to or hordes of random parts from everyone).

    $50-60 a month colo is what 1U should cost (I know people will bark about this).

    Doing the math of a full cabinet, we'll call it 35U usable for servers = $1750 selling 1U rentals @ $50 each. That's considerably more than full rack buys are running now in many places.

    The lease your own model can work, if you are credit worthy like that and don't mind multi year relationships. Anything more than 1 year in my world is eternity, so leasing isn't appealing to me.

  • raindog308raindog308 Administrator, Veteran

    @Eased said: If you paid a company to RTO a server over 24 months, they'd be making back the total cost of the server, x 2.

    Of course. All rent-to-own schemes involve the renter making profit because the lessor doesn't have the up-front cash to buy. You might say 2x is too high (I have no idea), but keep in mind that the renter has a high risk that the lessor will simply terminate the month-to-month lease and not complete the purchase. Of course, the renter can then turn around and rent to someone else, but there's dead times in there where no one rents the box, maintenance on the box, etc.

  • qpsqps Member, Host Rep

    We'll do RTO in Las Vegas or Atlanta. PM me or open a sales ticket :)

  • seansean Member
    edited December 2012

    We (OpenITC/XenVZ) can do RTO on some of our older hardware:

    2x Dual Core Opteron 280
    16GB ECC DDR
    1x80GB SATA (+ rails for 2nd drive)
    3ware 9500S

    I would simply charge you £50/month for the co-lo plus £240 over whatever term you were comfortable with at zero interest e.g. £70/month in total and it's yours after a year. You can either continue to colo at £50 or pull it out and take it elsewhere.

    Of course I can do better HDDs than that on a RTO basis too.

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