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Why do people require so much bandwidth?

MN-Carl

MN-Carl

MN-Carl
NLC
Hey,

Why do people require so much bandwidth with their servers and at such a little cost taking in account bandwidth pricing at the moment?

Example, bandwidth based upon actual usage as known as "Data Transfer" the norm on the lower end market (providers such as Rackshack) offer 400GB as standard with the majority of their servers. All for just $99 + TAX per month. Why does everyone expect such when the bandwidth providers are classed as "tier-1" and non-oversold. Example: 300GB InterNAP for $99 with a server. Working that on actual usage and full usage it would work out to around 1+ Mbit based on 95% as an estimate. InterNAP bandwidth is around $300 per MBIT based upon just 1Mbit commitment directly in the US.

Anyone have any input or any other views on the topic?
 
Here's my input I HAVE NO IDEA OF WHAT YOU'RE TALKING ABOUT:angry2: but I would want more bandwidth so if my site becomes popular I wouldn't have get another plan or pay.:p:
 
Apparently RackShack set the standard of data transfer prices. People expect companies like NAC, Internap, etc. to do the same.

It's all because people only thinks theres one bandwidth provider, or they simply substitute data transfer for bandwidth.

Abush would be a perfect example of this. (no offense intended, if you do get offended, slap me...).

Hell this site(FWS) consumes maybe 50gb a month.
 
Hey,

I am trying to find out why people expect you to offer something and either a loss or non worthwhile profit. Rackshack can provide 400GB per month because the average server uses only 50GB at most and they also have big commitments with providers such as MFN and NTT/Verio. This could also be done with any provider but the one big thing is capital. If you aint got it your not going to get the big connectivity.

I almost sold an OC-12 in California however the client wanted me to offer the local loop for FREE and just pay Cogent rates for the actual internet bandwidth between the OC-12 POP connection to the bandwidth provider we had arranged to use for internet transit. $30 USD per mbit for bandwidth on only 100mbit commitment for C&W bandwidth........ Needless to say I never sold the OC-12. :p

Also, I had loads of problems with people asking for FREE yes FREE 100GB's here and there because they believe the amount we were giving them at a value of around $0.25 per GB wasn't enough.....

I could fill up pages with my "interesting" experiences during sales jobs i've had in the past..... :mad:

Added:
Before anyone asks what the above OC-12 and rest is and why offering it for free isn't possible. Let me explain what it actually is.
The OC-12 is a fiber optic connection which can transfer upto 622Mbit/s. This connection would be a physical connection from Point A to Point B. Point A being the renter and Point B being the POP in this case. In addition to that we would have to manage the internet transit as the line is just a local loop in effect. In addition to that we would have to manage the clients routers in the POP and at their location. In addition to that we would have to manage the BGP in the pop to make sure the routing is up to scratch and also set-up whatever routes they want as preference. They wanted all this for FREE and just pay for the bandwidth at an assumed cost of $30 per mbit on 100mbit commitment. They assumed that bandwidth was $30 per mbit on 100mbit commitment because Cogent offers it. Cogent and C&W being so alike, as you know :rolleyes:. So thats right, they expect over $25000 of equipment FREE and us to pay for bandwidth which costs over $200 per MBIT for C&W and a few other Tier-1 providers as a back-up on-net solution for a total income of $30 per mbit. EXCLUDING SALES TAX.
 
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This is all I have to say Daniel youahave offended me therfore I'm slaping myself.:D I needed to wake up:p :p :p :p :p :p
 
Rack Shack can offer what it does because Cogent doesn't measure the amount of data transfer one consumed in a monthly period. Although if each server consumed atleast 300+GB a month, they would run into some problems with saturated bandwidth.

Carl, it's all because of people's knowledge(or lack thereof) of bandwidth. I had my fair share of stories. I used to work for a local company that was offering colocation/dedicated server on a Tier-1 facility(peer1 to be exact) with bandwidth provided by Qwest, Global Crossing, Aleron, Yipes, and WorldCom, plus with many peering agreements. Needless to say, it wasn't cheap. Many potential clients were wondering why we couldn't compare to RackShack or DV2, or whatever. :rolleyes:
 
Hey,

RackShack doesn't use Cogent mainly anymore. They use MFN and NTT/Verio more and also even Williams and Alliance for that Cogent.
 
Meh. I don't really bother to check their network much. I guess they're making pretty good money one way or another.
 
Common, the Average server consumes less than 100GB of transfer per month so of course they're making big bucks. I'm actually going to pay around 50 cents per gig in a while for a fully managed server, I want max uptime and reliability and great tech support for my base monthly price so I'm willing to fork out more money. And consider this, I am making a profit of around $6.50-$7 per gig used so its paying 50 cents per gig is a good deal for me.
 
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Hey,

$0.50 per GB is still cheap.
Expect to pay $400 per MBIT for top quality carrier bandwidth from UUnet or Exodus/C&W. Two amazingly good carriers.

I suggest looking into InterNAP bandwidth. Very good value for money.

Now,
Rackshack doesn't make a hell of a lot of profit right now... they may do once they stop buying new servers and have got their contract with Compaq/HP paid out in full.
 
$400 per mbit is a little more than $1 per gig, if you buy in Bulk, you can get lower prices.
 
Originally posted by Archbob
$400 per mbit is a little more than $1 per gig, if you buy in Bulk, you can get lower prices.
Click to expand...

Hello,

Based upon 100% usage of a given mbit. The actual usage would be ~320GB per month.

RackSpace charge $2.50 per GB over-charge as far as I remember.
 
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