Overselling in Web Hosting
Friday, August 1st, 2008Overselling is a business policy used in many industries today to create a situation, where a company provides a service which they know that they will be unsustainable to provide, if every customer uses the service up to the full extent that is advertised for the service. Overselling in Web Hosting industry is generally referred to the overselling of web space and allowed bandwidth usage.
In the web hosting industry, overselling describes the situation, which appears when the company oversells its services. For example, if the web host has a bandwidth of 20,000 GB allowed per month but the host sells 100 hosting packages with 1,000 GB allowed bandwidth per month for data transfer, then the web host is overselling its services. Since the sales they made totals to 100,0000 GB of monthly bandwidth which the company don’t bear itself and thus can’t provide if every user uses it up to the full extend. For sure, the web hosts hope that the customers will not be using the total bandwidth offered.
But if your web host doesn’t calculate this overselling process then either the web host will need to pay the overage cost or they will have to go into debt. This results in suspension of their service offerings and accidentally your website goes offline. The ultimate end can go wrong up to that situation when your web host goes out of the business along with your pre-payment of one year service offering.
So from now whenever you are going after a web host you should look after some things and keep them in mind while judging its reliability:
1. You should get exactly what you are paying for. This means you are not getting less than other hosts, as well as not much much more than others.
2. Multiple support options should be provided by the web hosts.
3. Know well about the web host and find out since when the company is in this business.
4. The web hosts own site is a remarkable factor which should be noticed well to find out how it is performing. If the hosts’ own sites go slow or often goes offline, then its a pure indication that your site will also go down many times.
Overselling is a kind of marketing strategy which companies are bound to do for profit. From the previous example you can get that not all sites will be able to use up 1,000 GB of monthly data transfer bandwidth. So if the web host provides its servers keeping the advertised bandwidth for everyone, then the company will waste their bandwidth and will need unnecessary number of servers to meet the number of customers.
Overselling is also done in several industries to prevent the loss due to cancellation by customers at the last moments before the selling closes. This helps the service providers to use their service providing capacity almost up to the extend as much as they can offer. Non-Overselling service providers many times suffers loss due to unavailability of sufficient customers with respect to their capability. This problem is somewhat solved through this technique of service overselling. Thus, when utilized in a properly estimated process, Overselling in web hosting industry can be profitable to the web hosts as well as non-annoying to its customers.
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