Quote:
Originally posted by SinEmpire
You're missing my point... let me explain. What I'm saying that everyone needs to consider is this: the cost of doing business on the HOSTS side isn't per gig, the host is either paying for committed, 95th or (highly unlikely) on average. So, one simply can't say well you can get 200 megabit from Hurricane electric for $5000 (for example). The reality is, the host would need to be buying 300 or more megabit to sell this guy 60TB (or approximately 200mbit on average).
That's it, just pointing out that the cost side of fulfillment isn't as low as it might seem to the untrained eye. That's why buyer needs to beware when shopping for low pricing.
Cheers,
Brad
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Ahhh, I see what you are getting at. I was looking at it from the customers POV.
From the hosting side, when you buy a gige handoff, you cant actually utilise the full gige due to traffic spikes/fluctuations. You'd be *lucky* to get 80% utilisation. Even with our client base nicely distributed across the world, we still have traffic spikes twice a day (morning and evening). In reality, we get 65% utilisation.
So cost formula is a bit different then most people think - you maybe able to get that gige handoff for $30k per month, but you are only able to use about 600mbps on ave. So your cost per gb is much higher then $30/mbps. More like $50/mbps. And that still doesnt factor in tech support, hardware, office expenses, etc.
So its buyer beware, cuz a lot of kids are pricing themselves outta biz. They dont even understand why their hosting company is losing money... they think they are selling at a profit. And then some companies sell bandwidth at low prices, but charge you out the wang for everything else.