Overselling Tendency In The Hosting Market
Web Hosting Articles » Overselling Tendency In The Hosting Market
According to the company in the past year web hosting has seen a trend of marketing which unfortunately often irrespectively exploits the most customers' lack of information on how web hosting service works. Web hosts have for a very long time promoted their service by the parameters of the packages they offering - how many megabytes you can store and how much data transfer your site may have. While for most professionals this gives a fair idea of what kind of website the service can support some web hosts rely on the fact that many people simply compare the numbers and go for the largest.
That is why now most web hosts have in a attempt to outbid each other brought their offerings to ridiculous heights. "It is not uncommon for a web hosting company to offer 20 GB of web space for a shared hosting plan priced at about $10 per month. Most of you would say that this is a great offer and the clear winner is the customer. Compared to the hosting companies that have not followed the giga trend this offer is too good to be true. Well it is not!" says Host Color's Executive Director Vesselin Drangajov.
We call companies offering the likes of 100 GB monthly bandwidth for less than $10 per month "Giga Hosts". Let's look at the way they operate.
Most of the Giga Hosts offer a service too cheap to afford mainframe systems. This means that most use entry-level server and not high-end servers sold by companies such as IBM or SUN and etc. With the advance of hard disk technology the average hard disk capability of one such machine is 400 GB. If we assume that all of this space is dedicated to storing customer content then such a server would be able to host 20 user accounts (20*20 GB) and at $10 per month would generate $200 of revenue monthly? If all this were true it would take more than a year to cover the cost of the server.
Comments 10 >>
|Previous: A simple guide to .htaccess||Next: Choosing the Right Domain Name|
Back to Web Hosting Articles list