I've been looking at Dedicated servers for the past week
I've noticed a trend of companies are offering dedicated servers cheaper than the actual datacentres

Example by checking their ip's you can find out what Datacentre they are using

How is that possible
If a datacentre charges $120 month
For a 2.4.gig machine
With 1.2 TB bandwith
and a 40 gig Hard Drive

How are these companies offering
$100 for a 2.4.gig machine
With<b> 2 Tb</b> of bandwidth
and a 40 gig hard Drive
and Managed aswell

I mean the datacentre in most cases charges $150 month extra for the bandwidth.
Even if they bought some rackspace, they still wouldnt be able to give it to you that cheap.

So whats happening?
How are these companies doing it???
Is it possible to sell a dedicated server to two or more clients???
I was under the impression that a dedicated server can only be used by the buyer and his resellers.

confused

I see you're talking about Ezzi - Ezzi offers more BW for their resellers.

Originally posted by Joshua
I see you're talking about Ezzi - Ezzi offers more BW for their resellers.

Yep. I believe he's talking about ezzi as well. But lets say he wasn't. These resellers could be overselling the bandwidth offered by the dc in hopes of you not using it. But it would still prompt them to make the sale over a competitor who does not oversell the alotted bandwidth.

Rather easily if you pull all the usually tricks. For example I have a few 1000 GB machines but due to their cheap cost to me I try not to push them too much. The host could assume 300 GB usage per customer and still give 1000 GB. So they allocate maybe 1 mbit per customer at large enough commits 1u + 1mbit could work per customer for the going costs. Bigger providers already have gige commits so their price per mbit drops drasticly. Also from my experience, Imagine 24 customers w/ 100mbit uplinks yet the switch only had 100mbit to the internal network. That is surely 1 way to cut spends down. I've even seen 10mbit unmetered sold on a network that had maybe 300mbit of total outbound bandwidth.

Packet shaping and things at the provider end can also make it easier to ocersell as well.

Yes it maybe Ezzi but I noticed that someone is advertising 4000gb of bandwith and Ezzi definetly doesn't offer that unless they cut a special deal with ezzi.

look carefully at that 4TB offer, it is probably 2TB in + 2TB out, which would be possible if ezzi measured only outgoing bandwidth or maybe only billed on the higher figure. If indeed ezzi measures bandwidth like that, this is a sales trick and other ezzi resellers can match that deal bandwidth wise.

Yes I did base it on the Ezzi structure
but I have noticed the trend, from theplanet, servermatrix, interserv, and one or two more....

But it makes sense if the DC's are offering prices cheaper to DC resellers... :)

Hey Jonny, how come your not on the MSN Messenger... :P

Originally posted by Blueheaven
How is that possible
If a datacentre charges $120 month
For a 2.4.gig machine
With 1.2 TB bandwith
and a 40 gig Hard Drive


The webhosting companies are probably overselling, but they are also getting a much better rate for bandwidth than you would because they are purchasing a lot more than you. You might only need 1.2TB, and the datacenter would charge you for that, but the webhosting company might use 500TB and would probably get a pretty good discount for that much bandwidth, especially if they signed a multi-year contract.