Quote:
Originally posted by SinEmpire
One one final note I just want to leave the conversation saying... I do believe that in life people usually get what they pay for. However, this clearly does NOT apply to webhosting. Most of you have no comprehension of the cost structure inside a hosting company so your ideas of what is cheap and what is expensive are completely unfounded.
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Which Tier 1 providers are selling bandwidth for $45.00/Mbit?
I agree with most of your post BUT:
$1.00 per GB is cheap. You have to factor in the costs of having a network engineer run the network 24x7, service contracts, the cost of building out your end (switch & router), technical support costs, and the general costs of running the business itself. Of course you can make money off virtual hosting and other services such as managed services but still - is it enough to offset the costs of building, maintain, and properly managing a "truly" redundant network while providing REAL 24x7 support? (None of this pager bullshit ? someone actually answering the phone that knows what they are doing)?? If you can manage to do this and have all tier 1 bandwidth (and turn a nice profit) - I admire you.
I have sold off 3 successful hosting companies and the lowest I could ever go on bandwidth was $1.95 per GB.