Quote:
Originally Posted by tony404
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No, it doesn't depend on the company hosting it. It's overselling. The size of the company means sweet fuck all.
Let's take 1and1's business plan. You get 2000 GB of bandwidth for $10. Let's forget about all other costs except bandwith. Forget hardware, electricity, rent, employees, marketing, etc. For them to break even on just the bandwidth, they'd have to buy it for half a penny for gig. If you know of a bandwidth provider that sells bandwidth for that cheap, you could make a fortune by simply divulging that information to other hosting companies.
Why do you think Webair only gives you 250 GB of bandwidth on a $10 virtual account? Even they're overselling, except they're doing it much smarter.
Two great articles on overselling:
http://whreviews.com/overselling-hosting.htm
http://whreviews.com/shared-hosting-res.htm