Quote:
Originally Posted by SpeakEasy
Companies that sell for cost or below cost do not last very long as history has shown. When a company uses these tactics it is usually because they have over committed themselves to their carriers and are simply trying to cut their losses before they are forced into bankruptcy. There are certain fixed costs in hosting such as the BW itself, data center space, power, routers and other equipment, servers, support, ect....the list is endless, so when giving it away for such cheap prices, ther is a catch plain and simple. It is simply just not good, prudent business.  |
We have the cheapest confirmed transit costs (IN THE WORLD) from every provider we purchase from. We've achieved this by using our 140+Gbps of usage to negotiate lower rates. Costs are further reduced by peering traffic directly with destination networks via our national backbone.
We focus on HIGH bandwidth hosting and the majority of our profit comes from bandwidth sales. Our usage increases by 15 Gbps per month, since the majority of the servers we sell are not capped (BURSTABLE VS. UNMETERED). We have single dedicated servers on our network that can burst to 3200 Mbps.
We host MANY multi-Gbps tube clusters. This $675 server offer is what we consider a 'seed' server. It gets you on our network, and then we watch your usage grow.