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Originally Posted by Lenny2
You're assuming that someones traffic graph will be a straight line across...it doesn't work that way.
If you average 5 you need a capacity of 10 in order to handle the spikes, or else your site will be slow/unreachable during peak times.
Which is why I say with 10megs capped you'll get about 7 out of it....if you're doing more than 7 you'll have to take the cap off the line to handle the traffic spikes and then that's a whole new hosting plan.
Also, I didn't forget about hardware and tech support costs....I said very plainly that on a gige commitment you would have 35K a month (scratch that....did the math wrong....its 25K)over and above your bandwidth cost to pay for hardware, techs salaries, and profit.
Plus in the math I did for the gige commitment I didn't even mention that the people buying 10 will only do 7....I simply dividied the gig line into 10MB increments for 100 customers paying $400 each.
Since each will only be using around 7 (some will only use 2 or 3) you can probably sell this package to more than 100 people without increasing your bandwidth commitment with the provider and still have a stable healthy network.
:2cents:
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Yes but here is the point
if you cap someone to 10 Megs and sell that same 10 Megs to someone else banking on the fact that no one will use all that traffic you can sell for that price. But what happens if they do use all that traffic, do you really want your galaries getting 404s or slow as my grandmas fiero?