Web Hosting Talk







View Full Version : How the heck do they do it?


pattox
01-30-2003, 08:23 AM
Hi, I would like to hear how hosting providers use rackspace, I know it means it will be more expensive for their customers but what servers do they buy? Do they buy the 30gb bandwidth servers or do they pay $3000/mo for 300gb bandwidth??? If they do purchase 30gb servers how are they able to be competitve, I know a few hosts that use them and still manage to offer plans for $19.95/mo with 10gb transfer... Do they just oversell alot? Or what? :confused:

Aussie Bob
01-30-2003, 08:40 AM
I'd say they're overselling like crazy and hoping the servers + the rackspace network will hold up. :eek:

Lirath
01-30-2003, 03:11 PM
Well... I can tell you if I'm using a RackSpace server, a plan with 10gb of transfer I'm going to be charging like 90/month... to offset server costs, running my business costs, support costs.. the works.

If you host with me (a rackspace server) support and quality is what you're going to get. And you're going to pay for it.

If someone is using a rackspace server and selling 10gb of transfer for 19.95 - they're PRAYING TO GOD that no one uses their full amount. The server they have is at least costing them $250+ (bare minimum) ... most likely the server they have is costing them around $500... with 30gb of bandwidth.. if they have 10 users using ALL 10 gb, they need to upgrade and get 70gb more bandwidth... - which is an extra $189/mo - which brings you to a total of $689/mo.. and they're brining in $200/mo.... I don't think so.


and each time they get a new plan, they need to get 10 more gb of bandwidth which will cost them $27... no only are they losing 7 dollars a plan, but there is no way to offer decent support at those loses/costs...

Incognito
01-30-2003, 03:17 PM
Rackspace does play "Let's Make a Deal."

Matrix
01-30-2003, 03:29 PM
Originally posted by Incognito
Rackspace does play "Let's Make a Deal."


This is correct because back when Racklocation screwed me and others over I contacted Rackspace. They were negotiating with me on the prices and all I needed was 1 server for myself. I ended up going with Weinbar which is Deru now. So if they would negotiate with me on 1 server they will negotiate with someone looking for a lot of servers to do web hosting.

mdrussell
01-30-2003, 03:52 PM
And they won't target low end customers - chances are they'll offer business class packages at higher prices.

What's the fixation for requiring 300GB of bandwidth? Our servers rarely push 100GB+ / month, and have never come close to 300.

hostingsp
01-30-2003, 06:08 PM
I know a host that offer 2 Gb space and 50 GB/s that's on rackspace network and that goes for $ 65 mo.

Choppy
01-30-2003, 06:15 PM
As Incognito said.

They do make deals very often.
You pay for quality!

Regards
Phillip

pattox
02-02-2003, 03:51 PM
Matt, The fixation would probably be that (taking the servers specs in consideration) 300gb is usualy what you would be pushing if you had the server filled with 200 customers, the reason you only use 100gb is that you only fit about 8-10 people per server, as theyr resource intensive resellers.

a_alonso
02-02-2003, 05:26 PM
It all depends on what the hosting company focuses on.

We had customers with 500+ customers in a single server and pushing less that 70 GB / mon.

JWise
02-02-2003, 05:32 PM
Yea I agress, Rackspace prices are very high

Single AMD 1.53 GHz Processor
256MB DDR RAM
SCSI RAID Controller
18GB SCSI Drive
18GB SCSI Drive
AIT 1 35gig Tape Drive
30GB (30GB incld.) Burstable Bandwidth



24x7 Support
RedHat Linux 7.2 Preinstalled
RackWatch Basic
Weekly Backup w/Email Notification



Monthly $839.00 <--- WHOA!

ntwaddel
02-02-2003, 05:33 PM
because customers are trying to get as much as they can for 1$. Even though 99.99% of them will never use more than 5GB a month, they want 500GB a month. With a lot of customers, especially not so knowledgable ones they want quanity over quality anyday.

alchiba
02-02-2003, 05:37 PM
Originally posted by a_alonso
It all depends on what the hosting company focuses on.

We had customers with 500+ customers in a single server and pushing less that 70 GB / mon.

Yep. One of our servers has more than 400 clients on it and finally broke the 20gb mark last month. On another box we have a single web site that pushes almost 300gb. Sometimes you need to play the averages, not paying particular attention to any one server but all of them as a whole. Call it "financial load balancing", if you will.

a_alonso
02-02-2003, 06:58 PM
Hey I like the term "financial load balancing" good one alchiba :)

KDAWebServices
02-03-2003, 06:41 AM
We push about 250GB per Web Server - but that is just web, no mySQL, mail, dns etc. so it does include some internal network traffic such as to and from DB servers and mail servers.

All big companies make deals, you list high prices to filter out most of the type of customer you don't want, then you negotiate with the rest.

apollo
02-03-2003, 10:54 AM
It all depends what type of clients you host. While a major personal sites do not eat bandwidth at all a simple and popular sub-domain hosted web site could eat 100GB with all the images and downloads it offers :)

Rackspace does mean quality, but hey, their pricing is still back from 1998-2001 or something. If you want quality, there are many high-quality hosts around - datapipe, servint, superb and others.