okay i know u can get lower prices from he.net resellers becuz they buy bandwidth and rackspace in "bulk" and therefore pass on the "savings" to the customers. but how much is a "reasonable" price for such a premium bandwidth? im asking this becuz in the advertising forum there are people selling he.net (fremont) bandwidth for 20cents a gig from 200gig! i also saw some very cheap offers (almost too good to be true) before even tho nowhere near this one. is this crazy overselling?

Probably a little bit of overselling happening.

I'm using www.fastcolocation.com for 1 server (there'll be 3 there by next week) and I'm quite pleased with the price and service.

I don't know if they do anything else, but for me, HE charges for 95th percentile bandwidth. The rate is variable depending on how much you generate, but assuming lowest-level rates, one cabinet, and a constant 1 Mbps going through at all times (i.e. 320 GB), you're looking at about a buck fifty per GB.

So I'd say yeah. Even in the limit where cabinet costs dwarf bandwidth costs, it's still around a dollar per GB.

actually, fastcolocation's pricing is realistic (ie no overselling required to make profit) based on the quotes ive seen from he. their pricing is probably as low as it gets at he fremont.

[disclaimer: i have no experience in them, this comment is solely based on pricing]

paul

Pricing from various vendors located at HE has a lot to do with how much they have committed themselves. For example is a company signed a 2 year contract for 100Mb/s with HE @ $X.XX per MB and is only using 10MB/s of this bandwidth they have 90MB/s of unused they must do something with.

While it make a perfect business model to sell this at cost, the downside is if no one buys it at cost they are still sitting with 90MB/s of bandwidth they have to pay monthly on. If they can somehow offload this at even 1/2 price that is definitely better than not getting any additional funds.

Where this business model falls apart is after the dust settles and bandwidth is being used at 90% or above and they are loosing money from month to month on the bandwidth what they will do next. If they are making profits from other services such as higher priced rackspace, consulting, support, or other revenue streams you will be in good shape. If they are not then the business model they have in place is predestined to fail and such things as "going out of business" or "raising prices" will be the ultimate end.

Two groups leap to mind when someone says he.net resellers: fastcolo.net and fastservers.net. Both are at he fremont, both have somewhat similar pricing with different areas targeted for savings (fastservers is a little nicer about Us, and fastcolo has better BW prices).

these are both on the low end of the pricing ladder (and if i'm wrong, someone please correct me! =] ) Like someone said above, if you play your cards right you don't have to oversell to offer those prices, which is good for everyone.

I was in the market to add a server in the bay area. It's mainly for a hobby box, and I went with fastcolo over unitedcolo (mainly because of pl for gaming). When a person is considering he AND unitedcolo for the same box, whatever he reseller he's looking at must have pretty good prices =P

expect to pay ~ 20/u and ~100/mbit

Overselling. But then again.. look around.

Where this business model falls apart is after the dust settles and bandwidth is being used at 90% or above and they are loosing money from month to month on the bandwidth what they will do next. If they are making profits from other services such as higher priced rackspace, consulting, support, or other revenue streams you will be in good shape. If they are not then the business model they have in place is predestined to fail and such things as "going out of business" or "raising prices" will be the ultimate end.

A complete well thought out business model includes a knowledge of, a bead on, and retention of your target. Some fish just don't need as much water.