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  1. #1

    Tera-byte charging $15 Fee to Co-Location people month!!!

    I have a friend who has a Co-Lo server with Tera and now is being charged an extra $15/month for as tera put it "Crappy exchange rate."

    What do you guys think?

  2. #2
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    I suppose that if you price your products so close to the breakeven that you need to adjust the exchange rate for foreign customers that might signal some financial problems... and have to pass it on to the customer is even more embarrasing. I dunno, not sure about the financial stability of the provider that would resort to such behavior.

    -Vlad Mazek

  3. #3
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    Originally posted by ownwebnow
    I suppose that if you price your products so close to the breakeven that you need to adjust the exchange rate for foreign customers that might signal some financial problems... and have to pass it on to the customer is even more embarrasing. I dunno, not sure about the financial stability of the provider that would resort to such behavior.
    Airlines often add a fuel cost surcharge to the price of tickets. Of course, it's been a long time since the major domestic airlines were labeled "financially stable."
    Jeff at Innovative Network Concepts / 212-981-0607 x8579 / AIM: jeffsw6
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  4. #4
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    Pretty much; With half bankrupt and other half hanging by the government bailout it doesn't look good. Thats pretty much my point, if the company you deal with cannot take a hit from an exchange rate difference - how financially sensitive are they to the expensive parts of this business - new routers, insurance premiums, software upgrades..

    I've seen many providers go under with similar tricks (exchange rate differences, credit card surcharges, bundling useless services and increasing fees, suddenly requiring contracts and huge prepayments); If yours is resorting to that its time to run, not walk.

    Please keep in mind that I know nothing about Tera nor am I suggesting this may be their problem.

  5. #5
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    The problem is that they bill in USD, which allowed them a nifty margin as they pay canadian for everything. As the us dollar has been tanking lately, and over the past year has become considerably less strong against the canadian dollar, they are making up for the lost revenue with additional fees. It doesn't necessarily mean that they're counting on slim profit margins (especially by looking at their prices) but more likely that they're just a bit greedy.
    Sam
    Sam Machiz / Director, Product Development / Ubersmith
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  6. #6
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    Re: Tera-byte charging $15 Fee to Co-Location people month!!!

    Originally posted by Mac Write
    I have a friend who has a Co-Lo server with Tera and now is being charged an extra $15/month for as tera put it "Crappy exchange rate."

    What do you guys think?
    Your friend is telling you only part of the story. Here is the email I received from Tera-Byte. Note that the email specifically states that the power fee applies only to the lowest-cost ($30) colo account:

    Date: Tuesday, March 30, 2004 5:48 PM -0700
    From: "Tera-byte.com Inc." <[email protected]>
    To: ...............
    Subject: Important Change To Your Account With Tera-byte.com

    Due to the change in the US/Canadian exchange rate and the increased costs of power and air conditioning in regards to colocated servers we have to make a change to our server rates. Starting May 1st, we will be adding a $15US power fee to the $30US minimum commitment plan for a monthly total of $45US. This additional fee only applies to the minimum commitment plan and will not be added on plans with a higher bandwidth commitment.

    To further explain why this charge is needed, our pricing in the past was set up based on a 1.50 exchange rate, so for every US dollar paid to us we would receive $1.50 Canadian. Today's exchange is 1.36, or a difference of 14 cents per dollar. There have also been significant advances in our power to improve the stability and redundancy of your system which allows for a greater uptime. These changes took the average power cost of a server from $17 per month to $27 per month, so as you can see, the lowest plan is no longer viable without some changes.

    This change, while significant, is the last one we expect to institute. In the 9 years we have operated, we have been able to extend to our customers many cost reductions as they become available to us. This is the first price plan increase ever.

    Your affected accounts are listed below:
    Domain name: ....................
    Account number: ........


    Steve Keyser
    CEO
    Tera-byte Dot Com Inc
    Hopefully this clarifies what you friend told to you.
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  7. #7
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    $27/mo to power a server? That seems like a load of bull.
    Jay Sudowski // Handy Networks LLC // Co-Founder & CTO
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  8. #8
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    Originally posted by Jay Suds
    $27/mo to power a server? That seems like a load of bull.
    Figure a server that has a 300 watt power supply. Each hour the server runs is 0.3kWH (kilowatt-hours). That is 7.2kWH per day or 216kWH per month. With an electrical rate of $0.10 per kWH, that comes to $21.00 per month. (check your electric bill to see what your rate is.)

    The above assumes that the 300 wat power supply is 100% efficient. More likely it is about 80% efficient, so now the monthly cost is $27.00 per month.

    I do not know if Tera-Byte also includes the depreciation of their new power equipment in their $27 figure. Regardless, my rough napkin calculations correlate with the Tera-Byte figure rather nicely, doncha think?
    This space for let.
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  9. #9
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    Not really, just because a server has a 300 watt power supply does not mean it's going to use 300 watts. During normal operation, it's probably going to use anywhere from just 100 watts to 200 watts, depending on the configuration and load of the server. My guess is that a commercial operation is likely going to pay less for power than a residential customer, as well.

    Further, my colo power bill is no where near $27 per server. If it was, I'd be screwed.
    Jay Sudowski // Handy Networks LLC // Co-Founder & CTO
    AS30475 - Level(3), HE, Telia, XO and Cogent. Noction optimized network.
    Offering Dedicated Server and Colocation Hosting from our SSAE 16 SOC 2, Type 2 Certified Data Center.
    Current specials here. Check them out.

  10. #10
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    As I said, they were napkin calculations. To be more accurate I'd need to know the power usage of the servers installed, the cost of the power, etc.

    The $27 number I came up with was just for power usage. As I mentioned, that did not take into account the depreciation costs of the new power distribution equipment that I believe they have recently installed. That depreciation cost could easily add a few dollars to the tally.

    Also, I might add, the Tera-Byte $30 colo service has got to be a very low margin product for them. Frankly, I'm glad they offer it. I've gotten top-notch support and service for the server I have colo'd there. I guess what I am saying is that, discussions about electrical costs notwithstanding, at $30 the service was a give-away. At $45 per month it is still a bargain. I would want Tera-Byte to continue to make enough of a profit on it so that they can continue to offer that price point.
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  11. #11
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    Most of our dedicated servers are Pentium IV 2.4GHz with 512MB and one disk in a 1U configuration with on-board peripherals. They draw around 80 watts. My guess is that if all the customers on a branch circuit started utilizing their CPU at 100% we would see higher current draw.

    Of course, DC power is the one, true way; and if vendors could standardize on a safe, idiot-proof -48VDC power connector, we could all run dual bus power to all our servers, and gain efficiency by not converting AC to DC in every server. But sadly, that may never happen.
    Jeff at Innovative Network Concepts / 212-981-0607 x8579 / AIM: jeffsw6
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    95th Percentile Explained Rate-Limiting on Cisco IOS switches

  12. #12
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    I've measured the power draw of my various desktops (typically a 1.5GHz or higher CPU and a SCSI drive or two), and they run in the 100 to 150 watt range when you include the inefficiencies of the UPS that powers them. (that does not include the power draw of the monitor) . Unfortunately, I didn't measure the power draw of my server before I shipped it to Tera-Byte, so I can't comment on that.

    But hey, as a customer of web hosting, let me offer all the web hosting vendors a challenge: If you think that the $45 per month colo service I currently buy from Tera-Byte is so over-priced, why don't you offer a similar or better service for a lower price point? I am aware of the various guidelines for this forum, so I don't expect you to respond here, but you should be advertising your prices on your website where I can see them. From my viewpoint as a customer, I'd welcome any price competition provided you can maintain the level of quality service that I am accustomed to.

    Once again, speaking frankly, the people who have been responding to me on this topic do not seem to offer the service that they are commenting upon.
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  13. #13
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    how much bw for $45? is it busrtable? 10 or 100mbps port?

  14. #14
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    15 gigs.

  15. #15
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    Originally posted by Tracert
    how much bw for $45? is it busrtable? 10 or 100mbps port?
    15 gigs per month, burstable, 10mbps.
    This space for let.
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  16. #16
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    It also could be related to a increase in rent for their 9th floor CN Tower offices. That is not a low rent area and as we in the Edmonton area all know, the City of Edmonton has increased business taxes as well as certain business licences. As well there have been a few rate increase approvals for Epcor which have increased power costs to both business and residential clients.

    So the assertion that their power costs have increased could be valid. But I also suspect that the devalued USD has a lot to do with it. Big difference between $15.43 CDN a client per month and $13.32 CDN per client per month.
    Glen Millar
    Tyger Hosting Services
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  17. #17
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    damn they have some horrible prices

    is it really that good???

  18. #18
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    yah.. tera-byte is a very good company. definately a good place if you want to host mission critical (low-bw) content.
    I specialize in neck beards
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  19. #19
    Originally posted by mg-
    yah.. tera-byte is a very good company. definately a good place if you want to host mission critical (low-bw) content.
    Why do you say low bandwidth sites? $2/GB is a bad deal? Is there a better deal with quality hosting for Co-Lo?

  20. #20
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    $2/GB is on the expensive side for our friends south of the border, however up in Canada its not all that bad (there is better and worse) .
    Places which have really low per GB pricing in Canada tend to have a lot of american lines which are less expensive.

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