I am investigating dedicated/co-locating servers. I have seen some that offer 50 GB of bandwidth/month and others that offer sustained bandwidth of 128Kbps. I am looking to use the servers for a small webhosting outfit.

What would be the best approach? Should I go with the set amount of data transfer and cough up the extra $5-10/GB per month should my server go over; or should I look for sustained bandwidth. What would be a good amount of sustained bandwidth?

Thanks in advance.

It's a hard one to call as it depends on how many users you are expecting to use your site at any one time. The main advantage is a fixed cost per month. The disadvantages are your site would be slow if a lot of users using your site at the same time and the cost of upgrading your site into the next bandwidth is usally high.

Have a look at dialtone internet http://dialtoneinternet.com as they provide 50 GB of bandwidth and allow 1 GIG increments for only $3 per month.

Others require you to purchase in blocks e.g 50GB at $150 so be careful!!!

Good luck