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  1. #1
    Join Date
    Feb 2006
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    189

    Colocation and bandwidth

    Colocation and the pricing for bandwidth is so confusing. Just when I think I understand it I get even more confused.

    Here is what I have learned. 1MBPS is equal to 324GB a month.

    How can a company charge $159 for 2500GB of bandwidth and then charge $350 for 1MBPS? This does not make sense.

    Is like say teh following

    324GB cost $350
    2500GB cost $159

    Hmm, am I missing something here?

  2. #2
    I seriously doubt anyone charges $350 for 1 Mbps per month, even ten times less than that is expensive.

    To give you an example; 2500GB is about 7.7Mbps, so if that is being charged at $159 then you are paying about $20.6 foreach Mbps per month.
    Last edited by prickett233; 01-18-2007 at 01:54 AM.

  3. #3
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    Feb 2006
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    The average price I have found for 1MBPS is about $100 per month.

    I did pull those numbers off one web site though. I laughed when I read it.

  4. #4
    Join Date
    May 2003
    Posts
    1,708
    1Mbps allows for inbound and outbound traffic of that amount typically on a 95th percentile basis. The dedicated server companies are selling the 2500 at an oversell rate betting that more than 90% of that bandwidth useage will be inbound and not outbound.
    ~~~~~~~~~~~~~~~~~~~~~
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  5. #5
    Quote Originally Posted by attroll

    324GB cost $350
    2500GB cost $159

    Hmm, am I missing something here?
    Providers are able to sell bandwidth at cheaper rates (per 95th percentile) when you buy more or commit to a certain amount. The higher the commit, the lower the rate is.

    One provider I talked too recently was willing to sell as low as $35 per MB if I commit to 100 MBPS.

    I'm not sure why you are laughing about $100 per MB, that's actually not bad for colo. Consider this: You buy a full cabinet and you can put 42 U of equipment in there and get 1 MBPS @ 100/mo. Some datacenters in my city charge as much as $400 per MB.

  6. #6
    Join Date
    Feb 2006
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    189
    Quote Originally Posted by imdma
    Providers are able to sell bandwidth at cheaper rates (per 95th percentile) when you buy more or commit to a certain amount. The higher the commit, the lower the rate is.

    One provider I talked too recently was willing to sell as low as $35 per MB if I commit to 100 MBPS.

    I'm not sure why you are laughing about $100 per MB, that's actually not bad for colo. Consider this: You buy a full cabinet and you can put 42 U of equipment in there and get 1 MBPS @ 100/mo. Some datacenters in my city charge as much as $400 per MB.
    I understand at selling it cheaper if I commited to 100MBPS.

    I can not see buying a 42U and only getting 1MBPS either, but to each his own.

  7. #7
    Join Date
    Jun 2001
    Location
    USA
    Posts
    19
    Actually there are companies that use less than 1 Mbit and have a full rack. The power bill is more than the bandwidth bill
    In fact we just got a request from one of our reseller for a quote of 1 full cabinet with 1 Mbps of bandwidth

    I agree: "but to each his own"

    Jimmy

  8. #8
    Join Date
    Dec 2006
    Posts
    40
    I got 100 mbps for only 48 per month. Is this sound weird to you guys? Is that switch port they are talking about ( 100 mbps )? and they told me I am getting 300 gb of bandwidth per month. So I don't understand the situations right now. Weird.

  9. #9
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    Dec 2004
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    San Francisco, CA
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    $48/mb per month for 100mbps is around about what most good providers will charge. You can however negotiate the price lower, I've seen top tier-1 providers hand out bandwidth at $40 or under at 100mbps commits..

  10. #10
    Join Date
    Jan 2004
    Location
    New York, NY
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    Quote Originally Posted by prickett233
    I seriously doubt anyone charges $350 for 1 Mbps per month, even ten times less than that is expensive.

    To give you an example; 2500GB is about 7.7Mbps, so if that is being charged at $159 then you are paying about $20.6 foreach Mbps per month.
    $35.00 per month for 1mbps of premium bandwidth is expensive? Probably not, some providers aren't even willing to talk to you if you are only interested in 1mbps. Many companies are very willing to drop well below that at higher level commitments, but for just 1mbps, they need to be taking in enough $$ from you to make your account worth their time.
    Thanks,

    Brendan Diaz
    Connect: linkedin.com/in/brendandiaz

  11. #11
    Join Date
    Feb 2006
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    189
    Quote Originally Posted by Yash-JH
    $48/mb per month for 100mbps is around about what most good providers will charge. You can however negotiate the price lower, I've seen top tier-1 providers hand out bandwidth at $40 or under at 100mbps commits..
    Please tell me who some of these top providers are that sell bandwidth for $40 to $48 for 100 MBPS are?

  12. #12
    Join Date
    Mar 2003
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    1,584
    Quote Originally Posted by imdma
    Some datacenters in my city charge as much as $400 per MB.
    You must be in a isolated place if they can get away with charging $400.00.

    In Chicago you can get Tier 1 providers at the $15.00 to $25.00 level, lots of competition.

  13. #13
    Quote Originally Posted by music
    In Chicago you can get Tier 1 providers at the $15.00 to $25.00 level, lots of competition.
    What is the commit rate for $15.00 per MB? I'd also like to know who these providers are. Everyone I've called (even out of state DC's) won't go that low unless I commit to something really high.

  14. #14
    Join Date
    Mar 2003
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    http://webhostingtalk.com/search.php?searchid=1927062 (Dennis Nugent) is a start

    just look around...I would get a time-out from the Mods as it could be considered self-promotion for mention of names and commit levels.
    Last edited by music; 01-18-2007 at 05:54 PM.

  15. #15
    Join Date
    Aug 2005
    Location
    Waltham, MA
    Posts
    18

    Bandwidth Pricing

    Everyone is an expert in pricing apparently. Just keep in mind that every market and situation is evaluated differently by the providers. What ever market you are in, consider prcing from atleast 3 providers. More important than the pricing, research the provider and speak with thier referrenced clients. There are to many horror stories with providers claiming they can provide the universe of services, yet they have down time regularly.

    Your TOP PRIORITY should be QUALITY OF SERVICE, pertaining to both the providers network and their customer service!!! You do not and can not experience downtime for critical applications and hardware!!

    Have a great weekend!!!
    Christopher Souza
    New England Data Services
    Email: csouza@neds.com
    Web: www.neds.com

  16. #16
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    Dec 2004
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    San Francisco, CA
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    Quote Originally Posted by attroll
    Please tell me who some of these top providers are that sell bandwidth for $40 to $48 for 100 MBPS are?
    I obviously can't name who we've talked to due to NDAs.
    But I'm talking about top providers in the Miami area.

  17. #17
    Join Date
    Feb 2006
    Posts
    189
    Quote Originally Posted by Yash-JH
    I obviously can't name who we've talked to due to NDAs.
    But I'm talking about top providers in the Miami area.
    I did me research and I found the provider you are using and they want $175 a month for 1mbps. That is a lot more expensive then anyone else.

  18. #18
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    Dec 2004
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    San Francisco, CA
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    you get lower rates at higher commits 100mbps+
    If you need 1mbps, its best you talk to a reseller rather than the provider directly
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  19. #19
    Join Date
    Feb 2006
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    189
    Quote Originally Posted by Yash-JH
    you get lower rates at higher commits 100mbps+
    If you need 1mbps, its best you talk to a reseller rather than the provider directly
    Well I am wanting to colo so this could be a problem. If you could point me in the right direction for a reseller that does colo I would appreciate it and if not here please Pm me with the info.

  20. #20
    Join Date
    Aug 2001
    Location
    Atlanta
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    I would venture to guess at least half the people posting in this thread have never actually signed a contract with an IP provider for a circuit. $35/expensive/tier 1? Too funny.

    To the original poster: 1mbps != 324GB. Anyone who says otherwise - disclaimers or not about 100% theoretical blah blah blah - isn't selling colo, or if they are, they shouldn't be.

    As for the price discrepancy between 2500GB on a dedicated vs. 1mbps colo, that just illustrates how insane overselling in this industry is. 2500GB would take somewhere in the neighborhood of 12mbps to service an average customer, assuming a 70/30 outbound/inbound ratio and a much more realistic 200GB transfer per 1mbps@95th. In principal it's really no different than [insert your favorite shared host here] offering 200GB of disk space for $6.95/mo.

    A colo customer is typically a more sophisticated customer who knows exactly what he is going to use - it's much less likely to see BW overselling in the colo space. The dedicated business seems to have eroded to much more of a retail-oriented market saturated with all-you-can-eat offers these days, hence the mass-market guys do whatever they can to attract business.

    Brandon
    Last edited by cbtrussell; 01-20-2007 at 09:48 PM.

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