Oversale - advantage or disadvantage

[rowebca]

We'll continue to use ROWEBCA's 110 GB plan and assume he is honest when he claims on his site "we don't oversell"


At todays hosting prices, you will lose money with this configuration, or you will need to overcharge customer. That's because you have unallocated and wasted resources. Very inefficient.

You can read the article I wrote here: http://www.webhostingtalk.com/wiki/Overselling

If you pay attention what I wrote in my posts here I never associate or make a referring to your business name, and I won't. I just talk about "overselling" and "unlimited disk space". You can give me any information that you have, I know there is nu such thing like "unlimited disk space". So when a company is telling to their customers about this, that company is lying because it is not true. If you are agree or not It is your problem, like I am free (I hope) to say my opinion, again any post I made here I didn't use your business name or your business model, everything I said was like an opinion. Please act like I act.

Do not think that who is not with us is against us...

Regards

 

[Collabora]

^No problem with the math?

 

[2funhosting]

Overselling should be done only when it is possible. I think it is depending on the processor or computer power. I mean that overselling is not necessarily a good thing but it is not necessarily bad either. Overselling is OK if it is done by very carefully , right and meaningful statistical way.

 

[BeltHosting]

Overselling is a big no no, you can end up with very laggy and slow server, which will just make your clients and income overall worse.

 

[Kingfish85]

It seems we still can't comprehend the difference between the terms overselling and overloading. Overselling has absolutely nothing to do with processors, lag etc...

 

[stgeorgehosting]

I totally agree with those guys who say that Overloading is a bad idea. Keep away from it

 

[Collabora]

It seems we still can't comprehend the difference between the terms overselling and overloading. Overselling has absolutely nothing to do with processors, lag etc...

Yeah. Even when you put the correct info in front of their faces they still don't get it.

 

[rowebca]

Yeah. Even when you put the correct info in front of their faces they still don't get it.

You, for sure will succeed in business, because you are more a politician, not using morality. The flaw in your article (made up to cover the overselling process) is this:

Use good judgment when looking at web hosts. Bear in mind that people who rent servers will be paying between $79 and $499 a month for a typical web hosting server. If a host is saying "1GB space and 10GB bandwidth for $1 a year," then they need at least 1000 customers on a $79 a month server to make a profit. And at $79 a month, the server won't be very powerful.
Retrieved from "https://www.webhostingtalk.com/wiki/Overselling"

You gave this example, just to justify the unlimited disk space, that is unreal, not TRUE, a big lie. Tell me who is selling webhosting for 1$ / year (8.3 cents / month), probably only you. Keep those things for yourself, or for a daycare kids, who will believe this.

A simple example with a server (let's say 32 GB, Raid-10 - 4*1TB (2TB usable, with a cost of 180$) I can put on a server 70 accounts of 10G (700G and 70 * $3 = $210) and 10 accounts of 110 GB (1100GB and 10 * $9 = $90) so I'll have on that server 80 accounts with $300 so my profit will be 300 - 180 = $120 / month (without selling my morality, or overselling). Of course this is just an example but you can do more profit in some cases without overselling.

Overloading is the effect of overselling, are 2 different things, you are right in this case.

You see , you can do moral business, and to have profit.


Regards

 

[Collabora]

A simple example with a server (let's say 32 GB, Raid-10 - 4*1TB (2TB usable, with a cost of 180$)

Where do you get a server and all the related services like that for $180/mo

Are you willing to open your server and hoting stats to us to prove that your advertising of "we do not oversell" is true while offering 110 GB hosting plans for under ten bucks?

You do seem to enjoy telling everyone that they are immoral. Just words without the documentation

You gave this example, just to justify the unlimited disk space,

My article and these posts are about overselling disk space, not unlimited disk space.

Ignorance is immoral

 

[And|newHOST.ro]

Hi,

What do you think is oversale a advantage or a disadvantage for a host. People check the same feature if available.

Hi there,

It can be an advantage for the provider as he puts as many customers as possible on the server. However, there is a disadvantage both for the customer as for the provider as well: if you oversell, most likely the performence will be affected. If the customer if not happy, he will leave, therefore there's no point in overselling with the risk of losing your customers. Where's the gain in that?

 

[DTN_VPS]

Disadvantage, overworks the servers customers get poor service!

 

[Collabora]

Disadvantage, overworks the servers customers get poor service!

Overselling has no effect on server performance. Anyone who thinks that it does is not qualified to manage a server.

 

[raindog308]

I think there's a lot of miscommunication in this thread :smash:

Overselling disk is very common and I see no problem with it, though some of the big hosting companies (Hostgator, Hostdime, etc.) do not allow it. If I sell 100 hosting plans with 5GB of disk, in theory I should have 500GB of disk sitting there. But we all know that lots of those 100 people will never use more than 100MB. Some will use their full 5GB of course, but as long as keep enough disk on hand so that people can use their 5GB, I don't think that's bad/unethical/bad business/etc. It requires capacity management, but it'd be foolish for providers to keep terabytes of disk around because of some imaginary moral obligation to keep enough free disk because suddenly everyone might use 100%.

A key point here is that the customer never knows or complains - there is no impact to the user.

Overselling server performance is what was labeled overloading. That is definitely bad and that is not a good idea. In this case, the customer definitely knows and complains.

 

[Richard Leik]

The hosts in this thread claiming they don't oversell probably don't have many clients. Overselling is unfortunately a fact of the industry and doesn't hurt the client if done correctly.

 

[PhillF]

I typically don't like overselling more than 200 or 250%. I have heard of some companies, whom will remain nameless, that oversell at least 700 to 800%.

 

[HostWithLove]

Overselling is not necessary a bad thing. It really depends what is the extent it is being carried out. Anyone who has been working in the industry long enough and monitoring their clients usage would find that most users actually do not even come close to their resources allocation.

If this allows the hosting provider to place more accounts on the server and cut down the need to run another server just to place more users for them, this can represent lower costs for the client to begin with. On the flip-side, a blatant addition of clients to a server which resources are already near or past its capacity can only result in all the clients on the server suffering.

I feel most of the complaints I read online have always been resultant of the hosting provider overloading the server and not proactively monitoring it sufficiently to notice that the resources are running out. Sure, by all means place more users on each server since they don't really use that much resources initially, but monitor it properly to ensure they do not exceed what the server can handle later on.

 

[dreamtera]

Overselling is a disadvantage to the potential clients.

Hosts oversell to make more money with little resources.

But in some ways....

If a host offer 10Gb space (really dedicated resource - not oversold)

but most of the clients don't use more than 1Gb then it is 9Gb extra.

So they can oversell 10 times. But that's not good and 20-30% overselling will not affect heavily too.

Hosts oversel to beat up prices of hosting with competitors and to reach the Hosting Industry.

 

[dafthost]

Overselling the web hosting products is a definitely a disadvantage and sooner or later will make even loyal customers look elsewhere for better, more reliable hosting products. It is simple, when you oversell a shared hosting product, all the other affected websites will experience a downtime and frequent disconnections when using FTP applications or database-driven software programs.

 

[HostZealot]

Overselling is not necessary a bad thing. It really depends what is the extent it is being carried out. Anyone who has been working in the industry long enough and monitoring their clients usage would find that most users actually do not even come close to their resources allocation.

If this allows the hosting provider to place more accounts on the server and cut down the need to run another server just to place more users for them, this can represent lower costs for the client to begin with. On the flip-side, a blatant addition of clients to a server which resources are already near or past its capacity can only result in all the clients on the server suffering.

I feel most of the complaints I read online have always been resultant of the hosting provider overloading the server and not proactively monitoring it sufficiently to notice that the resources are running out. Sure, by all means place more users on each server since they don't really use that much resources initially, but monitor it properly to ensure they do not exceed what the server can handle later on.

You just said exactly what I was going to say. Unfortunately, trying to earn a few extra bucks too often results in greed and server overloads. Proactive monitoring and preemptive reallocation resources is needed for stable and reliable service. It requires 24/7 support, which cannot be afforded by most of start-ups, unfortunately.

Therefore, overselling is a must for a startup to survive, but it must be dropped sooner or later - and better sooner.

 

[fastneasy]

Overselling can tear a company apart including greed. Don't get too greedy.