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  1. #1
    Join Date
    Mar 2004
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    Singapore
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    6,990

    Why so MS Hosting Companies Can Provide So Cheap

    Just wondering why some Microsoft hosting co can provide SQL, Win2003 servers so cheaply? For us buying the licenses esp SQL CPU can really kill already : (

  2. #2
    Join Date
    Jul 2003
    Location
    Castle Pines, CO
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    7,189
    Quantity. They hope to build up their clientelle quickly

  3. #3
    For hosting, you need to rent not buy licenses. You can rent a 1 CPU SQL licenses for <$300/month.

  4. #4
    Join Date
    Jan 2004
    Posts
    406
    Some really oversell their SQL servers. One company that comes to mind loads their servers (I think they are single CPU) with 300 to 400 databases. We've had problem with several sites because of this. I've found that you do need to spend the money to do it right.
    Affordable Business Web Site Hosting by Geo Redundant Hosting

  5. #5
    This is a very common mistake made in the hosting industry. You HAVE TO rent your licenses if you are a service provider. You cannot buy any Microsoft product and provide services to your customers using it.

    You need to first become a Microsoft Certified partner. To qualify for that, you need to have at least two MCPs working for you. Once you qualify, you'll have to rent all your software under the the Service Provider licensing agreement. Under this scheme, hosting companies license MS SQL Standard 1 Proc for $170/month. Win2003 web edition is available for as little as $15/month

    If you do not qualify for Microsoft Partnership, you should check if your datacenter co. is a Microsoft partner. You could then rent it through them although they are likely to put their own premium on it. I believe ThePlanet provies MS SQL 2000 Standard 1 proc licenses for $250/month.

    As far as database load goes. We put about 300 databases per MS SQL server. Each server runs on a P4, 2.8GHZ hyper-threaded processor with a SCSI hard disk. The server handles the load very well and I doubt this is overselling. Our MS SQL servers perform much better than all our other servers. That haven't clocked a single minute of downtime in many months. So 300 databases is definately not overselling or overloading.

  6. #6
    Join Date
    Dec 2002
    Location
    Amsterdam/Rotterdam, NL
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    2,135
    300 databases, is a rather vague description. It depends on the size and activity of the databases, ofcourse.

  7. #7
    Join Date
    Jan 2004
    Posts
    406
    I have not put that many databases on 1 box, but then again I don't openly offer SQL hosting at the time.

    From your comments, Jodo, I would think that the company that I'm referring to does not have the proper hardware to support that many databases. For example, the reports for one backend that we developed would not run during peak times with this host. Other much simpler applications become extremely sluggish. So I guess, like Apoc said, it all depends on the actual demand those 300 to 400 databases are putting on the server.

    But I agree, you have to rent and not buy - I've been considering becoming a partner myself - I just need to get my colleague certified (and pay up ).
    Last edited by ACW; 06-28-2004 at 09:05 AM.
    Affordable Business Web Site Hosting by Geo Redundant Hosting

  8. #8
    Join Date
    Dec 2003
    Location
    Billericay, Essex, UK
    Posts
    40
    It also depends on which hosting companies you are looking at. There are some unscrupulous individuals out there that not only overload their servers (thus meaning that the quality of service for their customers is very low but maximizing their profits) but also used pirated software to run their servers on. It is a sad fact but I have personally know several people who have been screwed badly by 'companies' like them.

  9. #9
    Some companies even buy a limited CAL (such as 5CAL) version of MS SQL and use it for hosting. That is a double violation of Microsoft's licensing agreement. Such hosts do not provide Enterprise Manager access so that should be your first warning. They usually disguise that saying its a "security risk".

  10. #10
    Join Date
    Mar 2004
    Location
    San Diego, CA
    Posts
    540
    When I had a hosting company, I spoke at length with MS reps about these licensing issues. There are so many people doing this wrong. Many out of ignorance (they just don't know) and many simply breaking the licensing agreements.

    Another reason people may be selling accounts so cheap is that they are simply resellers of larger hosts. They oversell their servers and can make a little $.

  11. #11
    Join Date
    Jan 2004
    Location
    Boise, ID
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    2,453
    Renting is the best option, but not the only one. Whether buy or rent a company that wants to offer MSSQL needs to have per cpu licensing.

    If a company owns there license then it changes the outlook because they are not looking to pay a monthly fee, as they already own it.

  12. #12
    No Larry, you absolutely cannot use the retail version (OEM) of MS SQL based on CPU licensing to provide hosting services:

    http://www.microsoft.com/serviceprov...ng/compare.asp

  13. #13
    Join Date
    Jan 2004
    Location
    Boise, ID
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    I did not say OEM. OEM is a different product. If you read the whole thing and then contact MS. There are purchase options available.

  14. #14
    To the best of my knowledge, MS provides no version of their product for service providers for purchase. You have to sign a separate service provider agreement with Microsoft and have to pay a monthly fee.

    Everything Microsoft sells is for "internal use". If Microsoft offered you a purchasing option, please let me know who your Sales Rep was.

  15. #15
    Join Date
    Jan 2004
    Location
    Boise, ID
    Posts
    2,453
    It was offered to us, but we choose lease because when you sit down and figure out, it actually is much less expensive. Especially when you add in upgrades, etc... then support contracts.

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