Thread: 95th Vs Per Gig
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Old 06-06-2003, 08:59 AM  
Snake Doctor
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Quote:
Originally posted by Phil21
All hosts get charged 95th.

Well, almost. There are times when that is not true (such as cogent pipes, someone buying a GigE port and capping it at 300meg, or whatever). Unless the provider can afford to buy full GigE ports (not overly many.. most hosts this size choose (wisely) to instead of maxing out gige ports, to give more traffic to another provider for redunancy sake).

It's the industry standard for large bandwidth commits, and that's why it's passed down.

As a host, why would you want to take on a customer who say, spikes to 150mbit for 1 week, and then doesn't use anything the rest of the month? You'd get dinged for 150meg from your upstreams, and be left holding the bag.

Yes, your host COULD cap themselves, but then that causes problems. We prefer to just let customers use what their traffic demands rather than artificially ratelimiting you.

Now, average is better for the customer in most cases. This is EXACTLY the same as per-gig billing. (think about it). We offer both choices, but at the end of the day, both are going to be pretty close in price no matter what. No host worth their salt will price themselves to go out of business because they can't pay their upstream bills.

Now, as a hosts gets larger, it gets easier to "play the odds" at traffic patterns, and then you can start dropping the average billing a bit. The reason? Chances our one of your other 500 dedicated customers will be bursting around the same rate at a different time.. Basically using your huge aggregate usage to "even out" your usage graphs.

Ok.. I originally was just going to point out that per-GB hahahaha average per mbit, but I got carried away.

-Phil
Yes being billed on average is exactly the same as paying per gig. You pay for exactly what you use, nothing wrong with that.

There are hosts out there that don't get billed by their providers on 95th percentile, and are able to pass that benefit on to their customers.
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