Carrier Hotels Are Sexy Again
datacenterfrontier.com
datacenterfrontier.com
If you only have a small presence, and need a lot of cross-connects, then it probably makes sense to build out in the carrier hotel.
A carrier hotel is a place for ISPs and large network users to place one or more switches or routers, and bring their own connectivity together with other customers of the same hotel. Each connection is negotiated separately.
A public exchange is a place for ISPs and large network users to bring a connection, and then they generally participate in a master agreement for traffic exchange between all users.
A private exchange is any other peering agreement between ISPs.
While many large, international networks still setup inside One Wilshire at a premium, if I just need cross connects, I can get them for exactly the same price inside Wilshire Annex -- a more "colocation for server farms" oriented building that is slightly cheaper and much larger (for individual spaces, not in total conditioned square footage, iirc).
Why do large international carriers pay the premium for being in the "carrier hotel" One Wilshire? Because they don't want to rely on CoreSite (the buildings and associated interconnection infrastructure management company) infrastructure. They want "home runs" to the other large international carriers they interconnect with and sell to.
If you aren't ATT or AWS, there is little need to be inside One Wilshire -- except perhaps for the "prestige" factor.
I think there's a lot of money to be made in having modern buildings that are situated close by the dominant carrier hotels. The crazy money is still made from cross connects, but you can also charge a premium on space because it still makes more sense than running a ton of fiber to the middle of nowhere.
(Network taps aside, at that level traffic can often get redirected through hostile networks via BGP spoofing.)
Hopefully any important information going through them is already encrypted.