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  1. #1
    Join Date
    Feb 2005
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    Curitiba, Brazil
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    How does HostGator manage to have so low prices?

    Do you know how HostGator manage to offer so low prices? They have excellent servers and support, I haven't seen any people complaining about their service.

    They have Quad Xeon 2.8Ghz servers with 4GB RAM!

    Still they have the lowest prices around

    How do they do it?

  2. #2
    Join Date
    Dec 2004
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    Those are Dual Xeon servers. It doesn't matter what server they put you on, it matters how many people they put on each server :-P. With a more powerful server, they can fit more people. It's pretty simple for a company to have good support, just make sure they have someone knowledgeable available 24x7. Staff can usually multi-task and respond to all inquiries within 30 minutes which is more than reasonable for the clients.

    Thanks,
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  3. #3
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    The server I'm on has 4 Xeon CPUs. These servers must be really expensive. I don't know if they have that many people on these servers, because on /home they are using 35GB out of 158GB HDD space available.

    How can they have a ROI ?

  4. #4
    Join Date
    Apr 2002
    Posts
    447
    Originally posted by auriance
    The server I'm on has 4 Xeon CPUs. These servers must be really expensive. I don't know if they have that many people on these servers, because on /home they are using 35GB out of 158GB HDD space available.

    How can they have a ROI ?
    probably 4 virtual CPU's

    a dual xeon with hyperthreading will show 4 CPU's in WHM

  5. #5
    Join Date
    Jan 2005
    Location
    UK
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    Economies of scale - all their costs such as support staff which will probably not change depending on their sales can be spread over more sales, so their average costs go down, and therefore they can lower their prices.

  6. #6
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    True, if their service is flawless they don't need much staff.

  7. #7
    Join Date
    Sep 2000
    Location
    Alberta, Canada
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    Wouldn't be hard to find lots of Hosters with lower prices and HG has had their share of negative reviews; valid and invalid ones. We use Dual Xeons as well and they do have two physical CPU's, but with Hyperthreading turned on it shows as 4 CPU's.

    And as mentioned, no matter what type Server is used, if it is not overloaded then people can expect fast loading pages.
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  8. #8
    You could ask them if they use SCSI hard drives or IDE/SATA.
    I have found that a large portion of your server cost goes into the Hard drive type (SCSI or SATA) that you choose. SATA is super cheap, while SCSI is about 5 times the price (or even more)

    Getting a 80 GB IDE will cost you maybe $80.
    Getting a 73 GB SCSI will cost you about $800.

    Dual Xeon with Sata Drives are pretty cheap. In this case, the RAM would be pretty expensive, and even there, depends on if they use ECC Registered RAM or not.
    Pierre Grandmaison
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  9. #9
    Join Date
    Feb 2005
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    Curitiba, Brazil
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    Apparently they use SCSI. More information:

    Processor Information

    Processor #1 Vendor: GenuineIntel
    Processor #1 Name: Intel(R) Xeon(TM) CPU 2.80GHz
    Processor #1 speed: 2799.229 MHz
    Processor #1 cache size: 512 KB

    Processor #2 Vendor: GenuineIntel
    Processor #2 Name: Intel(R) Xeon(TM) CPU 2.80GHz
    Processor #2 speed: 2799.229 MHz
    Processor #2 cache size: 512 KB

    Processor #3 Vendor: GenuineIntel
    Processor #3 Name: Intel(R) Xeon(TM) CPU 2.80GHz
    Processor #3 speed: 2799.229 MHz
    Processor #3 cache size: 512 KB

    Processor #4 Vendor: GenuineIntel
    Processor #4 Name: Intel(R) Xeon(TM) CPU 2.80GHz
    Processor #4 speed: 2799.229 MHz
    Processor #4 cache size: 512 KB

    Memory Information

    Memory: 4009076k/4194304k available (2098k kernel code, 53192k reserved, 375k data, 148k init, 3145152k highmem)

    System Information

    Linux ####.com 2.4.30-gator_r1 #3 SMP Thu May 5 01:02:34 CDT 2005 i686 i686 i386 GNU/Linux

    Physcial Disks

    hdc: CD-224E, ATAPI CD/DVD-ROM drive
    hdc: attached ide-cdrom driver.
    hdc: ATAPI 24X CD-ROM drive, 128kB Cache, UDMA(33)

    Current Memory Usage

    total used free shared buffers cached
    Mem: 4009328 3956780 52548 0 35060 2241288
    -/+ buffers/cache: 1680432 2328896
    Swap: 2562328 4 2562324
    Total: 6571656 3956784 2614872

    Current Disk Usage

    Filesystem Size Used Avail Use% Mounted on
    /dev/sda1 2.0G 260M 1.6G 14% /
    /dev/sda7 158G 35G 116G 24% /home
    none 2.0G 0 2.0G 0% /dev/shm
    /dev/sda6 2.0G 234M 1.6G 13% /tmp
    /dev/sda2 9.7G 4.0G 5.3G 44% /usr
    /dev/sda3 9.7G 3.3G 6.0G 36% /var

  10. #10
    How do you know it's SCSI? Sata drives often mount as /dev/sdaX
    Pierre Grandmaison
    Offering 24/7 Toll Free Telephone Support
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  11. #11
    Join Date
    Feb 2005
    Location
    Curitiba, Brazil
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  12. #12
    How they make money you ask?

    Thats server can probably be filled by them 5 more times the current ammount.

    Even if they don't oversell...after anywhere from 6 months to a year, that server will be paid off and all they have to pay for is bandwith...they make alot more money for hosting than they will have to pay for bandwith, bottom line.

  13. #13
    Join Date
    Feb 2005
    Location
    Curitiba, Brazil
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    How long does a brand new server last before the first hardware failure? (average)

  14. #14
    Usually you'll notice right from the beginning if there is something wrong.

    I can't tell you about hardware failure after running for quite some time because I don't have enough experience with these kinds of problems. I once had I problem with a drive that went bad after a while, but who's to say maybe it was bad from the Beginning, but I had never accessed that particular sector on the drive? Hard to say...

    Power supplies usually go once every 2 or 3 years since you are constantly running them.
    Pierre Grandmaison
    Offering 24/7 Toll Free Telephone Support
    Zenutech Web Hosting
    http://www.zenutech.com

  15. #15
    Join Date
    Dec 2004
    Location
    New York, NY
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    10,574
    They might be using dual PSUs, tho. So if the PSU fails, that's no problem. That's not a Quad Xeon as I said. It's just a Dual Xeon with HT. That looks like it's a server from ThePlanet which I think HostGator uses for a quite a few of their boxes.

    Thanks,
    MediaLayer, LLC - www.medialayer.com Learn how we can make your website load faster, translating to better conversion rates for your business!
    The pioneers of optimized web hosting, featuring LiteSpeed Web Server & SSD Storage - Celebrating 10 Years in Business

  16. #16
    Join Date
    Feb 2005
    Location
    Curitiba, Brazil
    Posts
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    Originally posted by elix
    That looks like it's a server from ThePlanet which I think HostGator uses for a quite a few of their boxes.
    That's right. The server maps to theplanet.com

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