Are Most Hosting Companies Cheating

[mwaraitch]

Overselling, Mega offers, unrealistic, are you sure what hosting companies are offering. Lets poll

[whtoplist]

I don't think that overselling is cheating. But there is "controled overselling" and "overselling without control".

Controled overselling:
Lets say that the web hosting provider pay $100/month for dedicated server which has 100 GB hard drive. So he must earn more then $100/month from every 100 GB web space. How can he do that?

a) Without overselling - e. g. sell 1 GB of disk space for $5/month
b) With overselling - lets say the hosting provider has thousands of clients and he knows that 90% of them need in average 100 MBs only. 10% will use all web space (1 GB). So he can expect that these 10% will use more if he will offer larger plans and 90% will always need only 100 MBs.

ad a) Web hosting provider will pay $100/month for dedicated server and earn $500/month from 100 clients which purchase 100 of 1 GB hosting plans.

ad b) The provider can sell 5 GB of webspace for the same price. 100 clients will use 10 x 5 GB + 90 x 100 MB = 59 GB. So you can see that the provider will earn the same money and have huge reserve.

Overselling without control
Yes, I have seen hosting plans like 1 GB of web space. I have no idea how many % of clients will use such resources but I think that such companies are playing very hazardous game.

[mwaraitch]

I agree with your points below, my sentence relates to an overall atmosphere where we have some thing like 50GB space being offered in less than $5.
In all eventualities, when overselling the hosting company is offering what it knows its is not capable of providing SO I am not sure of ethics. You see what happens if all customer use what they pay for. The calculation is done on experience and all that. But the offer is based on a thought that we (the hosting company) are not going to offer it to 90% of the customers.

The issue of overselling alone is not aim of this post anyway.
Thanks.

I don't think that overselling is cheating. But there is "controled overselling" and "overselling without control".

Controled overselling:
Lets say that the web hosting provider pay $100/month for dedicated server which has 100 GB hard drive. So he must earn more then $100/month from every 100 GB web space. How can he do that?

a) Without overselling - e. g. sell 1 GB of disk space for $5/month
b) With overselling - lets say the hosting provider has thousands of clients and he knows that 90% of them need in average 100 MBs only. 10% will use all web space (1 GB). So he can expect that these 10% will use more if he will offer larger plans and 90% will always need only 100 MBs.

ad a) Web hosting provider will pay $100/month for dedicated server and earn $500/month from 100 clients which purchase 100 of 1 GB hosting plans.

ad b) The provider can sell 5 GB of webspace for the same price. 100 clients will use 10 x 5 GB + 90 x 100 MB = 59 GB. So you can see that the provider will earn the same money and have huge reserve.

Overselling without control
Yes, I have seen hosting plans like 1 GB of web space. I have no idea how many % of clients will use such resources but I think that such companies are playing very hazardous game.

[ASP-Hosting.ca]

I think thta a hosting company is cheating only if it doesn't deliver what has been promissed. For example if the offer 100GB web space and they suspend your account if you use only 10GB, then that's cheating.

[~ServerPoint~]

I think if people have such approach while considering web hosting packages. I think that people with such thoughts will be very exacting customers.

[mehostsearch]

I don't think it can be called cheating. Different companies specialise in different types of services at different price levels. For example there are customers who would prefer to pay cheap and suffer speed and other consequences. Other customers are willing to pay more for premium services. That is just my own observation.

[ASP-Hosting.ca]

I don't think it can be called cheating. Different companies specialise in different types of services at different price levels. For example there are customers who would prefer to pay cheap and suffer speed and other consequences. Other customers are willing to pay more for premium services. That is just my own observation.

Many hosting customers unfortunately cannot distinguish between quality and poor service. I guess most people just don't really care about their websites, and can live with frequent downtime nd other hosting problems.

[andrew]

I don't think "most" hosting companies practice overselling. There are plenty out there that don't. I think its just that you notice the overselling hosts more so than the ones that don't. I do atleast.

[alemcherry]

Many hosting customers unfortunately cannot distinguish between quality and poor service. I guess most people just don't really care about their websites, and can live with frequent downtime nd other hosting problems.

Please dont under estimate your customers! Actually it sound depressing, coming from a very "underselling" host!

[shakir]

Most of them are average. now hosting field is high competitive. Some of them have bad support and features. But they are fail. Good Hosting companies are booming and making . Almost fraud will get review from net

[~ServerPoint~]

NMost of companies need to oversell to look as atractive as newborn companies. I think that ies reality

[grimlins]

But some of them control overselling process.

[Friend5]

I don't think that overselling is cheating. But there is "controled overselling" and "overselling without control".

Controled overselling:
Lets say that the web hosting provider pay $100/month for dedicated server which has 100 GB hard drive. So he must earn more then $100/month from every 100 GB web space. How can he do that?

a) Without overselling - e. g. sell 1 GB of disk space for $5/month
b) With overselling - lets say the hosting provider has thousands of clients and he knows that 90% of them need in average 100 MBs only. 10% will use all web space (1 GB). So he can expect that these 10% will use more if he will offer larger plans and 90% will always need only 100 MBs.

ad a) Web hosting provider will pay $100/month for dedicated server and earn $500/month from 100 clients which purchase 100 of 1 GB hosting plans.

ad b) The provider can sell 5 GB of webspace for the same price. 100 clients will use 10 x 5 GB + 90 x 100 MB = 59 GB. So you can see that the provider will earn the same money and have huge reserve.

Overselling without control
Yes, I have seen hosting plans like 1 GB of web space. I have no idea how many % of clients will use such resources but I think that such companies are playing very hazardous game.

A very informative post to me .
I am looking for the same in mnay forums.
Nice explanations.
Thanks for that.

[hostingITrust]

If a company lets you use the resources allocated then it should be fine.