Oversale - advantage or disadvantage

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.

Some smaller firms or resellers think through keeping the price tags very low, they are able to oversell products with no effects but they are wrong. Most internet companies and webmasters prefer to spend higher amounts of cash but receive reliable, uptime hosting products. A lot of hosting accounts have gone out of business simple because of selling hosting products, which were suitable for hundreds of sites, to a few thousand domain owners.
 
mostly high oversale could cause disadvantage. If it is just lower than 10%, usually it does not bother the service. But again this will be depend on the site hosted in the server.
 
Overselling can make you money but in the end your quality will begin to fade and your customers will look elsewhere. Offering decent packages for decent prices will attract better quality clients and will give you a better reputation.

Overselling is looked down upon so the minute you advertise an insane package for a low price people will have already lost respect for you and your company.
 
For webhosting company is an advantage but big dissadvantage for clients.

Even thouhg I accept overselling IF ONLY you do it carefully
 
Overselling is essential to any hosting business. If you equate overselling with overloading then you are a boob and don't have the knowledge/skills required to be a host in the first place
 
Collabora if you oversell you will always endup overloading your servers, no matter what.

It's true you can oversell a little, but if you go crazy on it, you will end up with an unstable hosting for your customers, bad reviews, and business going downhill.
 
Julien@HS said:
It's true you can oversell a little
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From my point of view I think overselling (little or more) it is disrespect for your customers. I think the most important thing is to respect the customer, because the customer is making your business to run, but this is doing moral business. If doing a moral business if successfully or not, this is another story. BTW, you have a nice website, and yes I am really proud living in Canada :) !!!

Regards
 
Julien@HS said:
Collabora if you oversell you will always endup overloading your servers, no matter what. .
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You will always end up overloading your server without overselling -- if you don't stop provisioning at some point.

A server will perform the same with X number of sites no matter how those sites got there -- by overselling or no overselling. Its the hosting plan that determines overselling, not the server. You can oversell one day and stop the next day just by changing a disk space bullet point in hosting plan. Server performance will not change between those two days.

Overselling is a hosting plan model, its not a server attribute. A host that oversells does so even before the first site is added to a server. That is, you can oversell and have an empty server. Its all in the hosting plan for a given server. The server cannot read your hosting plan and determine if you are overselling or not

An empty server performs the same whether you are overselling or not. The server with 10 sites performs the same whether you are overselling or not. The server with 100 sites performs the same whether you are overselling or not, ad nauseum. X sites will use Y RAM and Z CPU regardless of overselling or not overselling.

To claim that a server's performance is dictated by a few words on a hosting plan page instead of the actual sites on that server is ludicrous and ignorant.
 
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Collabora said:
Its amazing how many hosts do not understand the concept
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I don't think that it is something to understand. Do you think, doing business is more important to deliver "quantity" or quality" ? There is no such thing like "unlimited", that's why overselling is not a good way process, and will end up bad for the company who is doing this. No disrespect, just my opinion about this.

Regards
 
rowebca said:
I don't think that it is something to understand. Do you think, doing business is more important to deliver "quantity" or quality" ? There is no such thing like "unlimited", that's why overselling is not a good way process, and will end up bad for the company who is doing this. No disrespect, just my opinion about this.

Regards
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That just shows how little you understand -- overselling and unlimited are unrelated. As a matter of fact, I can show that overselling is impossible under unlimited plans, by definition. But first you have to know what overselling is, and you are obviously unwilling to learn.

Not to oversell will lead to resources not being allocated. These unused and wasted resources have to be paid by someone, either host in lost profits, or customer in higher prices. Its simple economics.

I am not belittling your model. But please keep your disparaging misinformation about other hosts to yourself. Its a sad way to market your services.

PS: for someone that claims "there is no such thing as unlimited," you don't waste any time selling unlimited sites, unlimited email and unlimited databases in your plans
 
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Collabora said:
That just shows how little you understand -- overselling and unlimited are unrelated. As a matter of fact, I can show that overselling is impossible under unlimited plans, by definition. But first you have to know what overselling is, and you are obviously unwilling to learn.

I am not belittling your model. But please keep your disparaging misinformation about other hosts to yourself

PS: for someone that claims unlimited doesn't exist, you don't waste any time selling unlimited sites, unlimited email and unlimited databases in your plans
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So, morality is not in your business model, you think you're right anyway, and you are attacking me with my "selling unlimited sites" etc. Do you think I did my school here in North America were money is more important than morality and knowledge ? I didn't, and please keep those cheap arguments for you. First of all I didn't talk about your model of business I talked in general...But you didn't see the way how I said....I observed that the most thing people are afraid here in North America is the truth...

Vincit omnia veritas

Regards
 
rowebca said:
So, morality is not in your business model...Do you think I did my school here in North America were money is more important than morality and knowledge ? I didn't
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Now overselling is product of geography, and you've insulted an entire continent. Sheesh.

Save the holier-than-thou attitude. Why worry about a speck in my eye when their is a log in yours. Anyone who sells 110 GB hosting plans and boasts on their site they don't oversell are liars. Or are you going to tell us you really would host only 9 sites on a server with 1 TB storage?
 
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That is what you get in return. Downtime and frequent FTP disconnections and many times failures of database-driven software. If you are ok with that then you can over sale beyond 20%. May be not bad for you but the clients will mind and when they do they will run away from you. Honesty is a virtue in business.
 
This is the myth of overselling. A server will perform the same with X number of sites no matter how those sites got there -- by overselling or no overselling. Its the hosting plan that determines overselling, not the server.

You can oversell one day and stop overselling the next day just by merely changing a disk space bullet point in hosting plan. Sites on server will not change, server performance will not change between those two days. Servers don't respond to hosting plans -- they cannot read. What you are referring to is overloading -- too many sites on a server. Overselling and overloading are two different things.
 
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Collabora said:
Now overselling is product of geography, and you've insulted an entire continent. Sheesh.

Save the holier-than-thou attitude. Why worry about a speck in my eye when their is a log in yours. Anyone who sells 110 GB hosting plans and boasts on their site they don't oversell are liars. Or are you going to tell us you really would host only 9 sites on a server with 1 TB storage?
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Did you hear about servers with raid-10. If not please read this: http://en.wikipedia.org/wiki/RAID_10#RAID_1.2B0

Learn more and you see it is possible to host 9 or more users with 110G on the same server.


Regards
 
rowebca said:
Did you hear about servers with raid-10.
Learn more and you see it is possible to host 9 or more users with 110G on the same server.
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There is nothing to learn except basic arithmetic. You cannot sell 110 GB plans and provision more than 9 sites without overselling if you have 1 TB of usable storage space

I'll illustrate:

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"

Let's say our server has enough ram and cpu to comfortably handle 500 average sites

9 hosting plans at 110 GB each requires 990 GB of disk space. 1 tb is 1,000 GB. Thus with a no overselling policy, only 9 sites can be provisioned. Yet we have enough ram and cpu for 491 more sites

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.

Now let us suppose that the average web site is 5 GB. We can fit 200 of these sites on the 1 TB storage. The other server resources can handle 500 -- we are 300 sites under overloading.

This configuration allows us to sell 200 110 GB plans (5 GB x 200 sites = 1 TB) -- over 20 TB of hosting plans on 1 TB! That is overselling by a factor of 20! With overselling I need only 1 server while the "we don't oversell" host will need more than 20 servers (200 divided by 9)

Moreover we have only 200 sites on our server that can easily handle 500 sites. And we can now make a profit and sell quality hosting at a decent rate.

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