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Cloud providers offered cut-price data centre hosting to serve customers

Providers will only pay for the space and power they have used

Companies can be surer in getting what they're being promised by cloud data providers thanks to a new service offered by Virtus Data Centres.

Announcing CoLo-on-Demand, Virtus CEO Neil Cresswell said: "The promise of cloud services is that customers can turn-up or turn-down the amount of computing power they buy at very short notice, so that their costs track their needs very closely.

"Until now, however, cloud providers have had heavy fixed data centre costs - often on a three, five or even 10 year contract that typically only goes up and never down."

Virtus promises to change this with CoLo-on-Demand by allowing cloud providers to cut their costs and pass on real scalability and savings to end user companies.

CoLo-on-Demand allows "cloud providers to have a cost model which matches their revenue stream" and "enjoy the same flexibility that they promise their customers", said Virtus.

The problem for cloud providers with conventional colocation charging models, Virtus said, is that they are based on the peak power load. So even if cloud providers only need, say 3kW in their data centre racks initially, and maybe more down the line, they usually have to commit to having more power than is needed at the start of their contract with the data centre.

That can make it a very high cost in the early days of operations and a particularly big long term commitment for smaller cloud providers.

With CoLo-on-Demand there is no time commitment. At the end of each month the cloud provider pays for the space and power they have used, based on how many kilowatts they have consumed to provide services to end user companies.

Virtus has set aside one of its halls in its North London data centre to provide the service.

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