Web Hosting Talk







View Full Version : $1 a gb, too good to be true?


energy
01-09-2001, 12:43 AM
http://www.e-brainers.com/linux_plans.htm
"Each additional 100 GB per month $100"

Anyone ever heard of these guys?

dektong
01-09-2001, 03:36 AM
$1/GB is for real! Look at ECUI.com (and they seem to have a better price for dedicated server, you might be interested!). The thing is they charge only in 100GB block of increment. So if you need and extra of 10 GB, then they will still charge $100 (i.e. $10/GB). If this is the case, then their bandwith becomes much more expensive. But if you can utilize most of the 100GB block, then yes... you get a good deal from it. But in any case, I don't think they are risking anything. If you find this forum closely, then you will find a NOC offering colocation with bandwith as low as $1.014/GB. Well this people definitely still have generate some revenue (though might not be a lot). So considering that by charging 100GB block of increment and the fact that not all their customer will utilize all of it, then tehy can easily offer it for $1/GB.

ECUI is also doing the same thing, but they only requires 50GB block of increment (instead of 100GB block). With dedicated server priced lower, you must take a look.

Gee! what's wrong with me... I keep telling people how great ECUI is although I have nothing to do with them :)

cheers,
:beer:

energy
01-09-2001, 09:41 AM
"If you find this forum closely, then you will find a NOC offering colocation with bandwith as low as $1.014/GB"
I didn't see something like that..
and I looked.

Only one who comes close on this board is tera-byte with their $100/100 gb/raq3 but I'm looking for an Intel (or AMD machine)

So what did I miss?

brain2b
01-09-2001, 09:54 AM
What is wrong with you people? Why would you want this kinda of deal? If you buy $1 of hosting you will get it. Ignore stuff like this unless you want your quality of hosting to be $1. It cost thousand and thousands of dollars to pay a staff, and to buy equipment for hosting. Take away the staff and shove everbody onto one server and that sounds about right.

tim2
01-09-2001, 10:08 AM
now they say "Data transfer usage over plan allotment is charged at $1.75/GB per month.." which doesn´t sound bad either

energy
01-09-2001, 10:32 AM
brain2b, did you even look at the web site mentioned in this thread?
This is a dedicated/co-located server, what I'm paying is for bandwitdh and electricity, not staff. The only support I need after the initial setup is a hard reboot twice a month maximum. This is not hosting for $1, this is one dollar per GB of transfer.

Tim2, which company were you reffering to? What is the URL?

cbaker17
01-09-2001, 10:36 AM
Im a little worried what the industry will come too, with prices falling to bargain basement pricing.

energy
01-09-2001, 10:48 AM
the consumer will always benefit from competition :)
so I'm not worried @ all

allan
01-09-2001, 11:12 AM
Originally posted by energy
the consumer will always benefit from competition :)
so I'm not worried @ all

I would respectfully disagree. Look at the DSL industry. Becuase of the cut-throat competition you have providers going under left and right. Many of those providers leaving their customers in the lurch. The only people benefitting are the %$^&!#$ at Verizon and other CLECs that can afford to lose money offering DSL until they put everyone else out of business (what, me bitter :)?).

In fact, I've seen this starting to happen in the web hosting industry. Many smaller hosts have been going out of business with little or no notice. We've had to rescue several customers from failed providers.

Mike S.
01-09-2001, 12:21 PM
Ever since DSL and Cable have become available in my area the quality of service has been going way way down. It seems that once there is so much competition everybody tries to offer the best price to remain competitive and then your service goes downhill. I remember paying $80 for a DSL in my area running at 768kbps, that was one of the best connections I ever had. Now I pay $40 for that same line and the service is horrible. :(

cbaker17
01-09-2001, 12:38 PM
Maybe for you energy it is always the best to get the bottom dollar prices, but it all pans out to, lower prices, lower service, lower quality. No matter what you say thats what it pans out too, they have to cut somewhere to get prices so low.

And people wonder why there are so many shotty hosts who offer hosting for a 1.00 or whatever it may be. Why wouldnt someone start up a hosting business with no desire to take care of the customer and simply motivated to make a quick buck when they know that most consumers are driven completly by greed.

As a sales guy I have to make sure our company balances quality as well as low prices. Im not about to let our company fall to the practices of the 1.00/hosts just to sell a few more systems.

So to make a long story short dont complain about bad service, if you signed up with one of the 1.00/hosts.

cbaker17
01-09-2001, 12:40 PM
Sorry for the rant, I guess it just hit a bad chord with me.

UnitedTec
01-09-2001, 12:49 PM
Originally posted by energy
the consumer will always benefit from competition :)
so I'm not worried @ all

Yes, the consumer will benifit until the company goes out of business because they are bankrupt. Don't look at just the cost, but also the value, and they ae two entirley different things. The bandwidth may be cheep, but what about the equiptment the company is using? If you sell it this cheep, you have to cut corners everywhere you can, and less expensive equiptment and staff are usually the first two to get it.

If the company is using bargain basement price routers, do you save when the router goes out? It doesn't matter how cheep the bandwidth is if you can't transfer anything. What about back up generators? Can they afford to install them and keep them serviced? Can they even afford to pay their bills to their connection provider. I'd rather pay more and make sure that the company I use will be there every day, and that they can afford to use top quality equiptment. That's value.

This is a dedicated/co-located server, what I'm paying is for bandwitdh and electricity, not staff. The only support I need after the initial setup is a hard reboot twice a month maximum. This is not hosting for $1, this is one dollar per GB of transfer.

What about tape back ups? Ever had a hard drive crash or fried a mother board? I know that I can call the NOC where my servers are located at 3:00 a.m. and get another hard drive installed in just a few minutes. If the router dies, they have a replacement on hand, and someone qualified to install it on hand. I don't mind aying a little more for this each month because I know that they will be there, and that means that I will be in business.

marksy
01-09-2001, 01:21 PM
Sounds like the rumblings of a still fledgling industry! Out of sheer laziness I won't check, but I imagine most niche or even larger markets go through this process - people demand cheaper - someone provides it - the provider is clueless - goes out of business to be replaced by another clueless provider..all until the consumer realizes - maybe cheaper isn't better. It amazes me customers will scrap for $1 a month looking for a better deal, when that $1 savings means potentially $100's in lost customers because the cheaper host is slow, or their site is down. Penny wise, pound foolish. Customers will wise up, but until then, we hosts will come and go - marveling at the stupidity.

BTW - energy - given your name I thought you might think abut this, but customers of the power companies in CA will disagree with you, competition does not always benefit the customer.

dektong
01-09-2001, 01:28 PM
Who is talking here about $1 host? All we are talking here is about $1/GB/mo like what ECUI.com offers on their dedicated server/colocation price and there is already a happy customer (of ECUI.com) here.

if you say $1/GB is crazy, then look at 4webspace.com who offer RAQ3 with 100 GB traffic for only $99/mo. If you are not using more than 100GB, then 4webspace.com offer bandwith lower than $1/GB (consider how much you will pay for the RAQ3 alone) Now.... what will you say about this "very good" company, eh?

So, will you guys please stop talking about $1 host? otherwise, why not start a new thread regarding that matter. I wonder!

cheers,
:beer:

PS: why is the 'beer' image has its link missing/broken?

Mike S.
01-09-2001, 01:49 PM
About the service one tends to receive with the much lower priced bandwidth available. Doesn't matter if we are talking a hosting account or bandwidth, it all boils down to the same thing. There is a service being offered at a low rate and in a lot of cases service will lack.

dektong
01-09-2001, 02:07 PM
OK, then explain me about 4webspace.com and their service!

1. The fact that when you offer $1/GB, there is a catch, i.e. you need to buy them in block of either 50GB or 100GB. As I explain before, this is how they can still make some money since on the average people will probably not gonna use all the allocated 50GB/100GB block. This is the same for webhosting provider when they offer traffic allowance of, for example, 5GB/mo when they know on the average, people only use 350-500MB of traffic/mo.

2. Now assuming some people do indeed use all the 50GB/100GB block of traffic, then the host (for example ECUI.com) will not go bankrupt since their cost for each GB/mo bandwith is probably less than $1 anyway! Again, look closely in the advertising forum for special deal offered by somebody where you can buy 1GB for only $1.014/mo. With this price, the person most probably has make some money already.

3. Now, somebody has found (on differnt thread) the lowest price for T3 for about US$12000/mo (I don't know where to get this price). T3 is capable of transfeering about 450x30GB/mo = 13500GB/mo (T3 is 30 times the capacity of T1). That already shows you how you can get (Assuming the bandwith is optimally used) 1GB for less than $1/mo. How about if a NOC leases OC3, instead of T3? This will drive the price even further down....

So the fact that a host offers $1/GB/mo does not requires that host to sacrifice on service. Well, they can charge the customer for the managed service provided (for dedicated server/colocation) anyway.

I don't want to talk about this further, but a host offering $1/GB/mo can't be equaled (service, etc) by a host offering webhosting for $1/mo! Who among you guys is going to say anything bad about 4webspace.com service eventhough they offer <$1/GB/mo (assuming you only use max 100GB of traffic and do not go over that). None!

cheers,
:beer:

Mike S.
01-09-2001, 02:15 PM
I respect what you are saying and I do agree with it. I was just making a point that if the price is much much cheaper than average then there is a higher chance that you might have support problems. I personally do not have any experiences with the mentioned companies but from my experience in the past, the best price isn't always the best deal.

Regards,
Mike

energy
01-09-2001, 02:18 PM
Can we please get back on topic?
We know that tera-byte is a great company and they offer $99 for 100 gb a month and a raq3
$1 per gb - less actually
so YES, it is possible to get great service and price.
Please notice that we are talking about $1 a gb, not a month. I would NEVER get an account for less then $10 a month, if it's too good to be true, then it's not true.
There are other ways for a company to make money.
- Hardware Rental
- Charge for software install
- Anything else?
Furthermore a full T3 costs less then $1 a gb.
The question is:
Is $1 a gb too good to be true?

ECUI.com offers $1/GB and they are good, probably
"I'm an ECUI customer since Jan 01 2001 (Standard Dedicated Plan). It is not a long time but for now I'm very impressed by their support (questions usually answered withing 10-20 min). The server is online 24/7, their connection is *fast*."
http://www.webhostingtalk.com/showthread.php?threadid=3619

But what about e-brainers?

cbaker17
01-09-2001, 04:09 PM
No one said or at least I didnt say 1.00/gig was too good, all I siad was that you get what you pay for. yes terabyte IE 4webspace provides good service, I never said they didnt, I said Im tired of hearing people complain about bad service when they went looking for it in the first place, by finding the cheapest host.

By the way can somone point out the thread where you can get a T3 for 12000.00 thank you.

dektong
01-09-2001, 04:32 PM
Hi Charles,

At first I had difficulty searching for it. It was a pretty old thread, but anyhow here it is:

http://www.webhostingtalk.com/showthread.php?threadid=3864

Hard to believe... if only I live nearby...

cheers,
:beer:

tim2
01-09-2001, 05:47 PM
"Tim2, which company were you reffering to? What is the URL? "

I meant ECUI.com, they say that on their website so it seems it is not 50 per 50 GB or 100 per 100 GB but 1.75 per 1 GB...


As for 4webspace: They are the ****! Setted up everything fast. (Server ordered Saturday, Ready with login Sunday, additonal IP´s and DNS Monday). DNS control panel: Login, add a domain, and then define whether virtual or with IP. Ready to go! I still ´wait for something bad happening there.... :) Am I dreaming...