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View Full Version : you get what you pay for


ORIGIX
09-08-2001, 08:59 AM
I have been in this business for 12 years and if there is one thing that I have learned... it is that nothing is as expensive as buying "cheap". The race for market share is only a race if you can offer services that render profit for the provider and performance for the customer. Price shopping is the surest way to fail. The math is simple... It costs backbone providers $125.00/mb to generate IP, at a minimum... Anything less is based on oversubscription. If it sounds like it is too good to be true... it is.

slade
09-08-2001, 09:56 AM
I'm sorry, I can't tell if you're just trolling, or being serious...
Originally posted by ORIGIX
It costs backbone providers $125.00/mb to generate IP, at a minimum... Anything less is based on oversubscription. If it sounds like it is too good to be true... it is.
Could you elaborate on this number?

Palm
09-08-2001, 11:57 AM
Pwebtech was offering services for that low, but customers seems to be happy with them. How do you explain that?

headsurfer
09-08-2001, 12:34 PM
IP cost is not just about a per MB cost from an upstream provider. IP cost is driven by oversubscription and by balanced traffic.

Example #1:
ISP #1 buys traffic from Verio. Verio also sells access to a Fortune 500 for an office application. Bulk of Fortune 500 traffic is daytime traffic. Bulk of ISP pull down is in the evening. Both have some 24 hour traffic but Verio in essence sells the traffic twice.

Example #2:
This same ISP has both dial-up (pull down) and web hosting (push traffic). As the traffic is offseting, the per-mb price is half as it is being used for two application.

So, assuming that Verio sells bandwidth for about $125 per MB, it is inessence getting $250 per mb from the over-subscription. Plus, this does not factor in the difference between the contracted capacity and the actual used capacity. That further drives the per-mb yield.

In example #2, the ISP is really only paying $62.50 per MB and the web division is only paying $62.50 per MB.

Take it one step further, in the Cogent scenario, the numbers are quiet a bit different. Assuming a $20 per MB cost plus the cost of a loop in a worst case scenario, you are talking a $30 per MB cost. Divide by 2, and you have a pretty incredible deal.

Say all you want about Cogent, but I've seen the performance numbers dramatically improve over the last few months. As the cities turn up and the traffic grows, so will the ability to peer at no cost.

Let's face facts, the cost of IP transport is dramatically falling. Actually, the cost of any kind of transport is falling. Long hauls can now be routinely found in the 1 cent per DSO mile. I can remember paying as much as 4 cents just 2 years ago.

Times are changing and will continue to change. In IP terms, this means that it just keeps getting cheaper!

That's my .02 .

Robert Marsh
Head Surfer Rackshack.net

Alareach
09-08-2001, 08:16 PM
"Pwebtech was offering services for that low, but customers seems to be happy with them. How do you explain that?
"

I wouldn't be too sure about that. I wish I didn't pay less to them. The support I get with my server...
:mad:
well, lets put it this way... I have waited over 1 week for one support issue with no reply. I have even emailed to follow up and called and still no reply. I will be getting rid of this server more than likely.

AH

Palm
09-08-2001, 08:43 PM
Give them little more time. You will like them.

jayglate
09-08-2001, 09:14 PM
There are no outstanding support tickets in our trackign system. So if you did send it, we didn't get it.

universal2001
09-09-2001, 04:09 AM
"Pwebtech was offering services for that low, but customers seems to be happy with them. How do you explain that?"

I'm in the same boat here.. :(

I submitted 2 emails for additional I.Ps, can't seem to get a reply. Maybe their ticket system is down or buggy?

The servers are GREAT, Uptime has been EXCELLENT, Support.. well lets say its been non-existent lately.

The special they had going seems to have put a big hole in their customer support reputation. I hope they recover.. Maybe they're hiring extra support staff to accomodate for the customer spike?

I expect them to improve soon once everything has settled down.

Other than that THUMBS UP for Pwebtech! :agree:

.. still waiting for an answer :uhh:

Alareach
09-09-2001, 04:27 AM
Originally posted by universal2001
"Pwebtech was offering services for that low, but customers seems to be happy with them. How do you explain that?"

I'm in the same boat here.. :(

I submitted 2 emails for additional I.Ps, can't seem to get a reply. Maybe their ticket system is down or buggy?

The servers are GREAT, Uptime has been EXCELLENT, Support.. well lets say its been non-existent lately.

The special they had going seems to have put a big hole in their customer support reputation. I hope they recover.. Maybe they're hiring extra support staff to accommodate for the customer spike?

I expect them to improve soon once everything has settled down.

Other than that THUMBS UP for Pwebtech! :agree:

.. still waiting for an answer :uhh:


I am in the same boat, waiting for IP's
They know who I am, I just called the other day and they asked me the ticket number and said "we will get to it" and let me go.

The ticket still awaits, I just emailed again today asking what is up. Perhaps it was closed without answering. But why then when I forwarded a copy of the email to support instead of unixtech did I still not get a reply. In fact, why was the ticket ever closed to begin with and if it was, why when I called you on Thursday was did you say 'we will get to it' if it did not exist?

It is sad I am here even discussing this, but I really have had enough, and feel the truth shall help others who were considering who their next server was from, as I was a few months back. They say the ticket is not there, which is why I am replying.

I feel like I am in the support "twilight zone". I really want to love these guys for their repuation, but also want to know why I can't enjoy what all of the other happy customers do... support!


AH

Chicken
09-09-2001, 12:54 PM
Now, this is a bit of a tangent, but I wonder if the ticket system is buggy? Or if ticket systems are buggy in general? There are at least two other hosts that I'm thinking of where problems such as this seem to be posted (not lately mind you, but in the past since I've been here). Anyway, I guess this is too much of a tangent, but it just made me think of a few times I've sent requests in to various hosts and it seemed the request vanished.

jayglate
09-09-2001, 07:06 PM
We are awaiting more ips from level3 on monday/tuesday. So all who have requested ips hang tight.

universal2001
09-09-2001, 07:51 PM
thanks for the update Jay... :)

Btw you might want to check up on your ticketing system. A number of hosts I know had a problem where emails sent to their support address never arrived..


:angel:

jayglate
09-09-2001, 07:57 PM
We are upgrading it in about 2 weeks or so once our new mail server is up, we will implement the newest version of this ticketing system.