Overselling.
What:
Overselling is when a company offers more space than they really have on there servers, and then rely on everyone not using it.
Bad?:]
Not always: if overselling is done in low volumes it can help clients get a better deal, and since most people to do not use all their space it can help those who do get a better deal. (This is just my opinion)
Know issues:
Hosts start to compete to offer the most space at the cheapest rates, regardless of if it means overselling or not, this builds up with some hosts offering ridiculous amounts. The issue with this, it lowers the cost of what the client expects to pay. And so the cycle repeats itself.
Example
Jo runs a company and offers 10 gigs of space and 645 gigs of band for $6.99 (this is taken off a offer I recently saw)
Now, here is a typical server: 80gb hd, 1000gb bandwidth for $120
(I realise some people can get better deals than this, so dont allways judge to harshly)
Now: work it out, for $1 of the server costs i get 666mb space and 8.3GB bandwidth. Lets round this up according to other factors (cheaper server and mild overselling) $1 = 1gb and 10gb.
But wait! Theres more! A good company has overheads: backup drives, tech support, server management, software, ect...
So please, for goodness sake, if your overselling this much. STOP. and if your a client, think before you buy.
And please dont ask for stupid amounts for tiny prices.
What:
Overselling is when a company offers more space than they really have on there servers, and then rely on everyone not using it.
Bad?:]
Not always: if overselling is done in low volumes it can help clients get a better deal, and since most people to do not use all their space it can help those who do get a better deal. (This is just my opinion)
Know issues:
Hosts start to compete to offer the most space at the cheapest rates, regardless of if it means overselling or not, this builds up with some hosts offering ridiculous amounts. The issue with this, it lowers the cost of what the client expects to pay. And so the cycle repeats itself.
Example
Jo runs a company and offers 10 gigs of space and 645 gigs of band for $6.99 (this is taken off a offer I recently saw)
Now, here is a typical server: 80gb hd, 1000gb bandwidth for $120
(I realise some people can get better deals than this, so dont allways judge to harshly)
Now: work it out, for $1 of the server costs i get 666mb space and 8.3GB bandwidth. Lets round this up according to other factors (cheaper server and mild overselling) $1 = 1gb and 10gb.
But wait! Theres more! A good company has overheads: backup drives, tech support, server management, software, ect...
So please, for goodness sake, if your overselling this much. STOP. and if your a client, think before you buy.
And please dont ask for stupid amounts for tiny prices.