The Perils Of Overselling In Business Hosting

By Author: Alan Smith
Total Articles: 7
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In a market that can encourage excess, some companies tend to oversell. Some airlines for example sell more tickets than their planes have seats because they take into account the possibility of some people not making their flights for a number of reasons. Another example is the practice of Internet service providers that distribute a single bandwidth to six people on the notion that not all of them will be online at the same time. When it comes to business hosting, companies advertise more than they can actually deliver.

Overselling in simple terms

In order to have a better idea of what overselling is imagine a company with a total of 100 gig web space and bandwidth of 700 gigs. Therefore, it starts selling packages at 1 gig and a 20 gig data transfer cap. With just 35 clients, the company would have already reached its bandwidth limit of exchange hosting, at least in theory. The fact is most clients only use a fraction of the 1 gig of web space or the transfer quota they pay for. This leaves a lot of space for the company to offer to other clients, and when it crosses that threshold the company is already ...
... guilty of overselling.

Is overselling illegal?

The practice is common in the industry but customers really are none the wiser. Nobody really knows how companies that offer business hosting conduct their affairs behind closed doors. The bottom-line is to have a website that is running smoothly. In addition, everybody understands that advertising tends to exaggerate. However, what if all the clients download data at the same time? The house of cards will come crashing down.

When you look at it from another point of view, overselling can drive down costs. The price of the bandwidth a company pays will remain consistent whether they offer it to a single person or three people. Therefore, it is logical that shared hosting will cost less than exclusive server hosting, because the former means more clients will be assuming the burden.

Wrong practices

The problem is not that a company oversells, the problem is when it does not know how to manage the bandwidth and web space in business hosting. Mechanisms that will be installed include -- the daily transfer quota on data that you download and the cap on the frequency of visits per second, putting a limit to the size of your file or your database. These are relatively easy for good companies but they are not error-proof.

The best companies do not oversell to provide a good customer experience. They also offer virtual private servers and dedicated web servers to avoid interference and performance slowdowns.

Prestige Technologies is a hosting company in New Jersey that offers business and web site hosting services. With Prestige Technologies, you will have access to state-of-the-art technology, reliability, full technical (support from simple to dynamic websites), affordability, fast connection, and a money-back guarantee for one month.

Alan smith is an expert author in writing about various business hosting services such as web site hosing and exchange hosting etc. Here he explains The perils of overselling in business hosting services. For further assistance, please visit at http://www.prestigetechnologies.com/