COLOCATION DATA CENTRE ADVISORY: Confidential Global Financial Services Group
01 The Opportunity
Cushman & Wakefield was approached in 2022 to support a global banking and financial services client with a stay vs relocate analysis of their existing colocation lease in Mumbai. A restructure of the organisation was being implemented and the cost of the lease would be shared by multiple departments moving forward. At the same time, their colocation lease was due to expire, and migrating to another operator was not the favoured option with the client preferring to negotiate lease rentals and continue with the current operator.
02 The Solution
The Cushman & Wakefield team set the objective to either re-negotiate and better their current terms or relocate with significant cost benefits. Cushman provided the client with two options; to find alternative providers with similar rates, zero downtime, and minimal migration costs, or; various options to extend their current lease before expiry. We worked with the client’s legal and technical teams to understand which approach would provide the most benefits.
03 The Result
Ultimately, the client chose to extend their lease and appointed Cushman & Wakefield to negotiate an extended contract without any rental escalation in the current lease cost until the expiry of the renegotiated lease tenure with no lock-in terms. This ensured both longevity and flexibility for the client to step out of the lease as and when necessary.
Managing Director & Head - Data Centre Advisory Team, Asia Pacific