What to Look Out For in a Master Services Agreement

Master services agreements are a vital part of the relationship between a data center and its customers. But few people really understand what to look out for when it comes to finalizing their master services agreement. 

In this article, we’ll talk you through some of the key things to consider when looking into these agreements, to help you get the best deal from your data center.

Does my data center compete with me?

Many data centers offer a wide range of services, from managed facilities to services and hosted infrastructure. In some cases, this can represent a conflict of interest as the data center can end up in direct competition with its clients. 

If your business offers any services that might compete with those offered by your chosen data center, there’s a real risk of issues further down the line. Pay attention to the other services a data center offers to ensure that you’re not competing with the data center you choose to partner with. It’s worth noting that TRG Datacenters exclusively offers Colocation and Colo+. So, there’s no need to worry about your data center competing with you!

Term flexibility

Some data centers are more flexible than others. When looking at your master services agreement, prioritize flexibility to ensure your agreement will work for your company long term. 

No one knows exactly what the future holds, so the more flexible your arrangements are, the better.

Look for a data center with a retail focus

A data center needs to be oriented and aligned with your solution in order to support you properly. 

Good account management is key to facilitating growth, and the willingness of your data center to assist you here can make a real difference to how quickly you can increase profitability in your business.

Is it too good to be true?

If you think the master services agreement is too good to be true, it probably is. 

Beware of deals that seem overly generous, and look for quality over huge cost savings. Trust us, it’ll be worth it in the long run.

The curse of the hidden costs

Hidden costs are rife in data center master services agreements, so it pays to be aware of exactly what you’re paying for. 

We’ve seen customers hit with surprise fees for all kinds of things, but common things to look out for include:

  • CAM fees (common area maintenance)
  • Fuel surcharges
  • Power rate passthroughs
  • Cross connects
  • Remote hands on
  • Cross connects between racks

Cancellation notices

Some data centers will tie clients into multiple multi-year contracts, and often these have lengthy notification windows should clients wish to cancel their contract. 

We’ve seen notification windows of between 60 and 90 days in the past, but some (thankfully rare!) contracts have come with cancellation notification windows of 120 days.  

Make sure you know what getting out looks like before you sign on the dotted line.

Take a look at our Master Services Agreement

We’re committed to transparency, which is why our master services agreement is available to view before you even get in touch with our team. 

Take a look at our current master services agreement here, and don’t hesitate to contact our team if you’d like more information or you have any questions. We’re here to help.