Bandwidth Dedicated Server
This is a key mechanism for hosting buyers to determine which provider is offering the right pricing mechanism of bandwidth pricing.[according to whom?] Most Dedicated Hosting providers bundle bandwidth pricing along with the monthly charge for the dedicated server. Let us illustrate this with the help of an example. An average $100 server from any of the common dedicated bandwidth providers would carry 2 TB of bandwidth. Suppose you purchased 10 servers then you would have the ability to consume 2 TB of bandwidth per server. However, let us assume that given your application architecture only 2 of these 10 servers are really web facing while the rest are used for storage, search, database or other internal functions then the provider that allows bandwidth pooling would let you consume overall 20 TB of bandwidth as incoming or outbound or both depending on their policy. The provider that does not offer bandwidth pooling would just let you use 4 TB of bandwidth, and the rest of the 16 TB of bandwidth would be practically unusable. This fact is commonly known by all hosting providers, and allows hosting providers to cut costs by offering an amount of bandwidth that frequently will not be used. This is known as overselling, and allows high bandwidth customers to use more than what a host might otherwise offer, because they know that this will be balanced out by those customers who use less than the maximum allowed.
One of the reasons for choosing to outsource dedicated servers is the availability of high powered networks from multiple providers. As dedicated server providers utilize massive amounts of bandwidth, they are able to secure lower volume based pricing to include a multi-provider blend of bandwidth. To achieve the same type of network without a multi-provider blend of bandwidth, a large investment in core routers, long term contracts, and expensive monthly bills would need to be in place. The expenses needed to develop a network without a multi-provider blend of bandwidth does not make sense economically for hosting providers.
Many dedicated server providers include a service level agreement based on network up-time. Some dedicated server hosting providers offer a 100% up-time guarantee on their network. By securing multiple vendors for connectivity and using redundant hardware, providers are able to guarantee higher up-times; usually between 99-100% up-time if they are a higher quality provider. One aspect of higher quality providers is they are most likely to be multi-homed across multiple quality up-link providers, which in turn, provides significant redundancy in the event one goes down in addition to potentially improved routes to destinations.
Bandwidth consumption over the last several years has shifted from a per megabit usage model to a per gigabyte usage model. Bandwidth was traditionally measured in line speed access that included the ability to purchase needed megabits at a given monthly cost. As the shared hosting model developed, the trend towards gigabyte or total bytes transferred, replaced the megabit line speed model so dedicated server providers started offering per gigabyte.
Prominent players in the dedicated server market offer large amounts of bandwidth ranging from 500 gigabytes to 3000 gigabytes using the “overselling” model. It is not uncommon for major players to provide dedicated servers with 1Terabyte (TB) of bandwidth or higher. Usage models based on the byte level measurement usually include a given amount of bandwidth with each server and a price per gigabyte after a certain threshold has been reached. Expect to pay additional fees for bandwidth overage usage. For example, if a dedicated server has been given 3000 gigabytes of bandwidth per month and the customer uses 5000 gigabytes of bandwidth within the billing period, the additional 2000 gigabytes of bandwidth will be invoiced as bandwidth overage. Each provider has a different model for billing. No industry standards have been set yet.
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