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50 GB storage, 250 GB bandwidth, $7.95/month. Say WHAT??

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  #1  
Old 11-13-2006, 04:47 PM
demowolf demowolf is offline
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50 GB storage, 250 GB bandwidth, $7.95/month. Say WHAT??


I was just doing some "random research" on the net to see what hosts are offering these days, and I came across this from a fairly large and well-known provider. 250 GB of bandwidth and 50 GB of storage space for $7.95/month.

Now I don't profess to be an expert, but I know my way around a server. I also know how much it costs to lease servers and how much bandwidth and storage space you get with them.

So how can a company sell plans like these, and still be profitable going forward? I mean, sure you can require 1 or 2 years payment to get that large plan, and that will bring cash in the door.... but eventually, assuming you plan on retaining the new customers you get, you'll have to pony up and provide the bandwidth and storage you've sold!

It seems to me that a model like this is based on an endless supply of NEW customers, as well as a constant migration of old customers leaving because they aren't ging to get what they bought. Am I right?

Is overselling getting out of hand?

Am I missing something?

Regards,

Rob.

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  #2  
Old 11-13-2006, 04:58 PM
ldcdc ldcdc is offline
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Quote:
250 GB of bandwidth and 50 GB of storage space for $7.95/month.
You'll see even more for less.

Quote:
Am I missing something?
Not really. The times are changing, and many hosts go with the flow. Other try to resist as best they can.

  #3  
Old 11-13-2006, 05:01 PM
Shock Hosts Shock Hosts is offline
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What ldcdc said, there a definitely worse, like 200GB Space with 3TB Bandwidth for $20 or so a month...

You just don't use them, but they are very attractive to consumers new to the market.

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  #4  
Old 11-13-2006, 05:02 PM
Swelly Swelly is offline
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The good thing is that, the industry is SLOWLY moving toward what is offered IN the package and not so much focusing on space and bandwidth. Consumers are more concerned about SEO tools, marketing, sitebuilders, etc.

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  #5  
Old 11-13-2006, 05:17 PM
MrRadic MrRadic is offline
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Quote:
Originally Posted by HostFrog
The good thing is that, the industry is SLOWLY moving toward what is offered IN the package and not so much focusing on space and bandwidth. Consumers are more concerned about SEO tools, marketing, sitebuilders, etc.
I will have to disagree here, consumers are afraid that it won't be enough. More has ALWAYS been better, its just basic psychology!

  #6  
Old 11-13-2006, 05:21 PM
Nadabrahma Nadabrahma is offline
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It seems the companies do manage to lure customers this way - unfortunately.

Of course, they count on the fact that most people won't ever need anything near those figures; they simply get impressed by the numbers...


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  #7  
Old 11-13-2006, 05:21 PM
WireNine WireNine is offline
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Quote:
Originally Posted by HostFrog
The good thing is that, the industry is SLOWLY moving toward what is offered IN the package and not so much focusing on space and bandwidth. Consumers are more concerned about SEO tools, marketing, sitebuilders, etc.
Most users always try to get the most for their money. The bigger the package, the more chances of user signing up.

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  #8  
Old 11-13-2006, 05:26 PM
encoderX encoderX is offline
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It's not the large amounts of space and bandwidth that's offered by certain hosting companies that's the biggest problem (by large) it's the CPU / serverload your allowed that gets you suspended.

Still hosting companies offering unrealistic amounts like that appears to attract a certain kind of client.

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  #9  
Old 11-13-2006, 05:27 PM
demowolf demowolf is offline
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So we're basically approaching infinity here when it comes to storage space and bandwidth. It seems to me it's just bad marketing. Offer more for less, even if you can't conceivably provide it.

It's also a creative way around offering "unlimited space" and "unlimited bandwidth" which was pooh-poohed not long ago..... but really, isn't that what they might as well be offering?

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  #10  
Old 11-13-2006, 05:28 PM
explorez explorez is offline
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Hmm, actually I haven't personally used this kind of hosting, but I know 2 friends of mine who does. One of them used servage and the other DH.. And guess what, their site actually DO use at the very least, half of what the hosting company offered.. that's like >100GB space and >1TB bandwidth and they've been using this much for at least 2-3 months as far as I know..

They use the server to store files with various sizes (few KBs - hundreds of MBs from a BIG forum) and the download speed is pretty decent too (servage being the faster side here).. I don't know about the support but based on that alone, I think that's a pretty damn good deal..

  #11  
Old 11-13-2006, 05:32 PM
40sixty 40sixty is offline
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I use a hosting like this.

200GB and 2TB of bandwith.


I use around 5 GIG of space and 5 GIGs of bandwith.
Why I went with this host?
It was only $10 for the first year ^_^

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  #12  
Old 11-13-2006, 06:00 PM
Martie Martie is offline
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Quote:
Originally Posted by demowolf

It's also a creative way around offering "unlimited space" and "unlimited bandwidth" which was pooh-poohed not long ago..... but really, isn't that what they might as well be offering?

Ditto. Ive made this same point more than once and of course still believe it.

You know it would be different IF it was needed in order to host average websites but its NOT.

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  #13  
Old 11-13-2006, 06:02 PM
Justin Justin is offline
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unlimited space and unlimited bandwidth eh? I'm beginning to think all these threads regarding excessively ridiculous space/bandwidth for dirt cheap pricing are becoming "unlimited" as well.

Speaking of which:
Quote:
50 GB storage, 250 GB bandwidth, $7.95/month
Guys guess that means we can all go ditch our servers and get their hosting in replace it.... (don't think they'd be too happy with the resource usage though).

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  #14  
Old 11-13-2006, 06:17 PM
encoderX encoderX is offline
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Quote:
Originally Posted by martint
I use a hosting like this.

200GB and 2TB of bandwith.

I use around 5 GIG of space and 5 GIGs of bandwith.
Why I went with this host?
It was only $10 for the first year ^_^
That's the point. Your using about the right amount of low space and bandwidth for the $10 but, use 100GiB and 1TB of bandwidth and see if they consider you a viable customer for the $10 ...

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  #15  
Old 11-13-2006, 06:29 PM
explorez explorez is offline
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Quote:
Originally Posted by EncoderZ
That's the point. Your using about the right amount of low space and bandwidth for the $10 but, use 100GiB and 1TB of bandwidth and see if they consider you a viable customer for the $10 ...
Actually if you read my post above, some hosts actually DO give what they offers in term of space and bandwidth.. Provided that you don't use the CPU too much..

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