I don't quite get it. Certain delicated server provider are selling additional bandwidth at a price higher than it would be than it would to get another server. ie. Plan A comes with X GB free at $Y, but an additional X GB (pre-ordered) would cost > $Y.

What's the logic behind this? Is there something that I missed here?

Sounds like provider wants to sell you another server.


Lats...

Some co-lo's come with bandwidth included.... say 100GB - If you use more than that then yes you would be liable for the extra.. the host is liable for it.. so then in turn you are too - There are no free rides anywhere - You get what you pay for :D

Yes, I understand that one is liable for overage. What I don't understand is why it's cheaper to get another server instead of preordering a certain bandwidth from them. Take a look around, some ~$200 plans provide around 400G of transfers but would charge as high as $300 for another 400G of *pre-ordered* bandwidth.

Now, even considering the setup fees and additional work to maintain two servers, it would be much cheaper if I were to get two server to push the 800G than to pay for the additional bandwidth on a single server. Besides, I get more disk space, CPU cycles where as the provider probably have more work and one less rack to sell. Does quite make sense do it? Yet I see this for more than one provider :)

Well co-lo comes with bandwidth as a rule - Now if your dedicated provider is co-lo'ing then traffic will usually be built into your dedicated server price.. If you go above that then you would be charged overage.

It's also cheaper for bandwidth, traffic, for your host to co-lo another server, rather than pay GB charges - So yes you would be better off sometimes getting another server if doing substantial amounts of traffic :D

Hope that solves that one :D

It's overselling bandwidth.

I guess the logic is that the servers won't push anywhere near that much. If someone is purchasing bandwidth, chances are, they will use all of it, or something close to all of it.

This doesn't work with everyone, i'm sure a handfull of the customers do actually use 500gb per box.

Originally posted by clockwork
It's overselling bandwidth.

I guess the logic is that the servers won't push anywhere near that much. If someone is purchasing bandwidth, chances are, they will use all of it, or something close to all of it.

This doesn't work with everyone, i'm sure a handfull of the customers do actually use 500gb per box.

clockwork hit the nail on the head :D They do not expect you to use all of the allotted bandwidth and you pay dearly if you do.

Thanks, I see the logic now...

Xenos, it's the provider who would pay dearly if you do exceed the allocated bandwidth limit, but instead of subscribing to their "unsubsidied" bandwidth, purchases another server from them.

I'd say most of the monthly cost of a cheap $99 server goes towards bandwidth ie 400GB, and thus it is cheaper to buy another box than it is to purchase more bandwidth. Because boxes can be used again they eventually pay themselves off, whereas bandwidth has no equity.

Originally posted by ethan
I don't quite get it. Certain delicated server provider are selling additional bandwidth at a price higher than it would be than it would to get another server. ie. Plan A comes with X GB free at $Y, but an additional X GB (pre-ordered) would cost > $Y.

What's the logic behind this? Is there something that I missed here?

There is only logic behind this is a faulty business plan.

Your provider is clearly overselling the services the provide in order to offer X amount of bandwidth to everyone with their dedicated server fee. It's likely that your provider is actually offering the X amount of transit with the server at below cost. No doubt, over the long term this will cause the serious financial problems for your provider.

1 Dedicated Server + X Amount of Transit should be costlier than X Amount of Transit everywhere you go.

If you look, many hosts often do the same thing on their shared hosting plans. They sell 20GB of bandwidth, 500MB of disk space for $10/mo, making their per GB cost around $.50/GB. But then, if you want extra bandwidth, they whack you $3, $4, $5 or more per GB.

There is only logic behind this is a faulty business plan.

Your provider is clearly overselling the services the provide in order to offer X amount of bandwidth to everyone with their dedicated server fee. It's likely that your provider is actually offering the X amount of transit with the server at below cost. No doubt, over the long term this will cause the serious financial problems for your provider.

1 Dedicated Server + X Amount of Transit should be costlier than X Amount of Transit everywhere you go.

If you look, many hosts often do the same thing on their shared hosting plans. They sell 20GB of bandwidth, 500MB of disk space for $10/mo, making their per GB cost around $.50/GB. But then, if you want extra bandwidth, they whack you $3, $4, $5 or more per GB.

It is a business plan.. brought about by users who think they need more traffic/bandwidth than they actually need and will use... yes it's what nearly everyone is doing :D

Originally posted by Dotcomsnz


It is a business plan.. brought about by users who think they need more traffic/bandwidth than they actually need and will use... yes it's what nearly everyone is doing :D

And fostered by providers who would rather take the easy way out rather than educate their customers.

Facts are that nothing is free, cheap is rarely good or stable, and if it looks like a money loser, it probably is.


Pendragon

http://www.superheronet.net

Over selling is here to stay.. whether it be good bad or otherwise.. we don't oversell ourselves, but plenty do and plenty make a good profit at the end of the month.

Like I said, over selling is a business plan :D