In web hosting today, customers demand is getting harder and harder to satisfy. Unlimited disk space and bandwidth seem to be compulsory on the packages that they offer. Companies which do not have this seem to loose out in the competition. However, can unlimited disk space and bandwidth really be possible? In the market today, it is possible with the marketing technique of Overselling.
Like we mentioned, Overselling is merely a marketing method for providers to describe their product or services. For an example, a company organizing a dinner for 50 people will provide 60 tickets for sale. With their statistics, they know that 5-10 people will not turn up. Therefore, they do not have any disadvantages at hand. However, this Overselling technique could be disastrous for your company’s reputation if used incorrectly.
In web hosting, this technique is very commonly used because competitors are found everywhere. Overselling could meet the demand of the customers. By doing that, they can stay in contention with other companies. Moreover, customers want to get more while paying less, this reason males the company even more reason to use this overselling technique.
Here is an example of Overselling used in web hosting. Company A is a company that is capable of delivering 20 000 GB of bandwidth and 2000 GB disk space. They offer a plan that offers 2000 GB o bandwidth monthly and 200GB storage space. They are able to do this because they calculated that 90% of their clients never use more than 10% of the resources they were provided. Mathematically, they can only accept 10 clients. Therefore, they are overselling.
For unlimited bandwidth, it is clear that it is impossible to be achieved. The bandwidth really depends on the resources that you are provided. They are the CPU Time, RAM Usage and Database Connection. Before unlimited bandwidth can be achieved, you will have to sort out the limited resource that you have. Company will usually state this in their terms of service ‘If a user is monopolizing a server resources, XXX Hosting Company has the right to immediately suspend the account for resource abuse. No refund will be offered.’ This is a way the companies trick their clients. Therefore, it is always better to choose a provider that has a good reputation backing their honest service.
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– by Justin Knights.