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  1. #26
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    May 2002
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    possible = yes
    viable = no
    major overselling = yes
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  2. #27
    Join Date
    Feb 2002
    Posts
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    Not too sure if it is possible, Asher said somewhere earlier that bandwidth cost $30/mbit - though not sure if that applies to them. So cost per user is $30/mbit if we only consider bandwidth - so that is $19 profit IF we assume all users use up all the alloted bandwidth. Also other factors to take into consideration, but with a good business plan (hopefully they have it), it is still do-able.

    possible = yes
    viable = maybe if there is a sound business plan
    major overselling = well they can afford it since bandwidth cost is lower than what customers are paying, that is assuming there are no other costs, which isn't true.
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  3. #28
    Join Date
    Jul 2002
    Posts
    3,734
    Cogent costs $30 a mbit, but I can't believe the facility they are in is selling it to them at cost. (though I guess the facility could have a high commit rate and thus a lower price per mbit)Otherwise, best worry about the facility's stability! lol
    Last edited by Andrew; 10-12-2002 at 12:21 AM.
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  4. #29
    Join Date
    Jun 2002
    Location
    Ottawa. Canada
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    an awful lot of 'assumptions' in this thread
    Trevor MacGill
    www.hostcharge.com
    Visit our Forums: http://forums.hostcharge.com
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  5. #30
    Join Date
    May 2001
    Posts
    264
    if anybody can factually state any the following

    - how much we pay for our servers (wholesale)
    - how much we pay for our bandwidth
    - how our business plan works
    - wether we are currently profitable or not

    then please lets keep this topic going, anything else is pure speculation on which most of you (seemingly all of you) have absolutely no factual basis whatsoever, unless you somehow got ahold of our accounting books or business plan


    i'll gladly answer any real questions about our company, but wont dignify any wild speculation on behalf of..... competitors...... with an answer

    thanks ;-)
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  6. #31
    Join Date
    Feb 2002
    Posts
    267
    Would be great if we could get it straighten out - for those doubting the sustainability
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  7. #32
    Join Date
    Nov 2000
    Location
    San Diego
    Posts
    3,407
    Originally posted by TrevorM
    an awful lot of 'assumptions' in this thread
    Why don't you clarify those assumptions. I thionk a lot of what is assumed is right on. Of course you can clear it up. Thanks.

    Cogent costs $30 a mbit,
    Correct. And that is for a 100 MB drop. No one gets it for cost unless they drop it themselves. Second. It really isn't $30.00/Meg. Everyone seems to forget that you will never get 100 Megs of sustained traffic. The ups and downs of traffic will limit you to 1/2 use at best. Good business says 1/3. So that is $60 - $90/Meg.
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  8. #33
    Trevor, I don't see you post unless you know something about a thread.

    How bout ya PM me with the scoop =P
    dotGig
    <:<: [Fruit eating linux administrator]
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  9. #34
    Originally posted by ClarkH
    - how much we pay for our bandwidth
    $50 a mbit, unless you worked a bulk deal with them.

    Brian
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  10. #35
    Join Date
    Jun 2002
    Location
    Ottawa. Canada
    Posts
    51
    Originally posted by UmBillyCord
    Why don't you clarify those assumptions. I thionk a lot of what is assumed is right on. Of course you can clear it up. Thanks.
    First off, i want to clarify that i do not work for the company in question.

    This thread is completely built upon assumptions if you look at it, people assuming they know how much @webhost pays for bandwidth, assuming that its a one man company, assuming it has no sound business plan, assuming it doesnt even own their own servers, i could go on.

    It'd be nice if people were a little more informed before jumping aboard, thats all.
    Trevor MacGill
    www.hostcharge.com
    Visit our Forums: http://forums.hostcharge.com
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  11. #36
    Join Date
    Jun 2002
    Location
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    Originally posted by Samuel
    Trevor, I don't see you post unless you know something about a thread.
    Thats better than posting in threads which i know nothing about isnt it?
    Trevor MacGill
    www.hostcharge.com
    Visit our Forums: http://forums.hostcharge.com
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  12. #37
    And isn't it nice how the host punished those dirty birdy's by not clarifying anything.
    dotGig
    <:<: [Fruit eating linux administrator]
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  13. #38
    Originally posted by TrevorM

    Thats better than posting in threads which i know nothing about isnt it?
    Ya had to change some time now didn't ya!

    The support group really is helping isn't it, here, take a hug
    dotGig
    <:<: [Fruit eating linux administrator]
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  14. #39
    Join Date
    Jun 2001
    Location
    Gotham City
    Posts
    1,852
    Just to clarify one thing, we have no intentions of raising our prices -period-. We will ofcourse eventually offer limited stock but we will -not- increase our prices.

    Asher.
    [[ Reyox Communications / USA based cloud servers & support / 9 years of hosting websites ]]
    [[ Affordable ASP.NET4, ColdFusion, PHP & MS-SQL, MySQL, cPanel/WHM & Windows Reseller Hosting + Virtual Private Servers ]]
    (www.reyox.com) - Mention WHT and get a discount on your first month!
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  15. #40
    Join Date
    Jun 2001
    Location
    Gotham City
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    --
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  16. #41
    Join Date
    Jun 2001
    Location
    Gotham City
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    Originally posted by Richard Ward
    You must have vast capital to sustain a loss like that. Your prices will shy away the real long-term users who know the market's infrastructure and what is feasible. I could offer web hosting for $1.00, and a year from now; I'll be looking at bankruptcy. That doesn't mean I cannot offer it at those prices, I just can't sustain it. I think in the next 6 months, your company will be looking for a new business model. If these prices were logical, we'd see a trend and not a wildcard. Basing your prices on Cogent's unbelievable bandwidth fees is not a good idea when Cogent is losing an estimated $30M a quarter last I checked. Where will your customers go when you find out that "real" providers like Sprintlink, Qwest, etc. don't offer 1mbps for 50 cents? (sarcasm)
    Cogent is not out of business yet and it certainly wont be anytime very soon and when it is... we have backup plans as well. So thanks for your concern.

    And I really like the way you are assuming that we are making a loss. Have you looked at our books?

    Asher
    [[ Reyox Communications / USA based cloud servers & support / 9 years of hosting websites ]]
    [[ Affordable ASP.NET4, ColdFusion, PHP & MS-SQL, MySQL, cPanel/WHM & Windows Reseller Hosting + Virtual Private Servers ]]
    (www.reyox.com) - Mention WHT and get a discount on your first month!
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  17. #42
    Join Date
    Sep 2002
    Location
    http://www.hostriot.com
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    135
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  18. #43
    Join Date
    Mar 2002
    Location
    Chesterton, IN
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    792
    Hmm...could someone tell me if these semi-dedicated servers are like VDS's, in which you have full root access?
    Matt De Leon
    GreekComm - http://www.greekcomm.com/
    Online Community for Greek Fraternities and Sororities.
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  19. #44
    Join Date
    Mar 2002
    Location
    Chesterton, IN
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    792
    Not to get off topic, but how did Mr. Ward's thread come after mine if I posted mine after him!? Just a little confused....
    Matt De Leon
    GreekComm - http://www.greekcomm.com/
    Online Community for Greek Fraternities and Sororities.
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  20. #45
    Join Date
    Jul 2002
    Posts
    3,734
    Originally posted by smidwap
    Not to get off topic, but how did Mr. Ward's thread come after mine if I posted mine after him!? Just a little confused....
    For some reason, the time is incorrect on his post. It says it was posted at 3:17, when 3:17 hasn't even gotten here yet...
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  21. #46
    Join Date
    Nov 2000
    Location
    San Diego
    Posts
    3,407
    Originally posted by TrevorM


    First off, i want to clarify that i do not work for the company in question.

    This thread is completely built upon assumptions if you look at it, people assuming they know how much @webhost pays for bandwidth, assuming that its a one man company, assuming it has no sound business plan, assuming it doesnt even own their own servers, i could go on.

    It'd be nice if people were a little more informed before jumping aboard, thats all.
    #1 - We *know* how much they pay. They can't get lower then cost. Give us a break.

    <removed>

    #3 - Please go on since you offered. I want to see all these wrong assumptions. Especially from someone who deosn't work there but seems to know a lot.

    Cogent is not out of business yet and it certainly wont be anytime very soon and when it is... we have backup plans as well. So thanks for your concern.
    Asher, can you tell me where you can go and offer what you do if Cogent fails? A back up plan means you can 'recover'. 300 GBs for $49 somewhere else? No offense, but I don't think you can have a back up plan at those prices.


    Hmm...could someone tell me if these semi-dedicated servers are like VDS's, in which you have full root access?
    No. It just means you are sharing with a few others. A limited amout of shared users. Can you imagine 6 shared users all using 300 GBs????

    Another young host (older and wiser now) did this same pricing. Remember Alwayswebhosting? 60 GBs per account. They found out the hard way, it isn't possible to offer high bandwidth accounts below cost.
    Last edited by Chicken; 10-13-2002 at 12:36 PM.
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  22. #47
    Join Date
    Apr 2001
    Location
    Paradise
    Posts
    12,052
    Richard, I don't want to turn this thread about homenetweb.com, but you offer
    Unlimited Storage Space
    Unlimited Traffic
    for $10, that's not possible either.

    Another young host (older and wiser now) did this same pricing. Remember Alwayswebhosting? 60 GBs per account. They found out the hard way, it isn't possible to offer high bandwidth accounts below cost.
    They started offering unlimited space and bandwidth for $24.95 as well, hopefully for them and their customers, they changed that.
    Shared Web Hosting - Reseller Hosting - Semi-Dedicated Servers - SolusVM/XEN VPS
    LiteSpeed Powered - R1Soft Continuous Data Protection - 24/7 Chat/Email/Helpdesk Support
    Cpanel/WHM - Softaculous - R1soft Backup - Litespeed - Cloudlinux -Site Builder- SSH support - Account Migration
    DowntownHost LLC - In Business since 2001- West/Center/East USA - Netherlands - Singapore
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  23. #48
    Join Date
    Sep 2002
    Location
    perl -le '$_=`man perlfaq1`;print/"(j.*)"/'
    Posts
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    You must have vast capital to sustain a loss like that. Your prices will shy away the real long-term users who know the market's infrastructure and what is feasible. I could offer web hosting for $1.00, and a year from now; I'll be looking at bankruptcy. That doesn't mean I cannot offer it at those prices, I just can't sustain it. I think in the next 6 months, your company will be looking for a new business model. If these prices were logical, we'd see a trend and not a wildcard. Basing your prices on Cogent's unbelievable bandwidth fees is not a good idea when Cogent is losing an estimated $30M a quarter last I checked. Where will your customers go when you find out that "real" providers like Sprintlink, Qwest, etc. don't offer 1mbps for 50 cents? (sarcasm)
    Richard Ward
    1 NET LANE, LLC.
    http://www.1NL.net
    The low cost data center.
      0 Not allowed!

  24. #49
    If the only hold back is the bandwidth issue, pehaps they're banking on most folks never reaching maximum target?
      0 Not allowed!

  25. #50
    Join Date
    Mar 2002
    Location
    Chesterton, IN
    Posts
    792
    Of course they are! In fact, all web hosts that oversell (which many do, though not as extreme as some others) are counting on their clients not reaching their maximum space and/or bandwith. Then again, someone (I forgot who mentioned it) brought up some good points about the overselling not being to bad. Might want to look at that.
    Matt De Leon
    GreekComm - http://www.greekcomm.com/
    Online Community for Greek Fraternities and Sororities.
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