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Transit costs an ISP (who buys 40+ gigabit circuits) about $1/megabit @ 95th percentile. 1 Terabyte is about 3 megabits/second fully loaded for a month - So, p

Transit costs an ISP (who buys 40+ gigabit circuits) about $1/megabit @ 95th percentile. 1 Terabyte is about 3 megabits/second fully loaded for a month - So, presuming that DO has to pay for their pipe, that 1 TB costs them $3. Amazon is probably charging a bit much, but DO's costs are probably unsustainable if people actually used their 1TB (much like any service that offers people a "huge amount" with the hope that nobody actually uses it.

Retric 13y ago
Or they plan on overages. They charge '$0.02 per GB thereafter' which works out to 20$ per TB so they break-even on bandwidth at ~1.2TB. Sure, some people can get vary close to 1TB without going over but for most people it's hard to manage bandwidth that exactly.
bluedino 13y ago
Exactly how Dreamhost/Hostgator can offer 'unlimited diskspace/bandwidth/puppies' for $6 a month or whatever.
- pgrote 13y ago
  Two ways: 1) They oversell their capacity. 2) Their terms of service agreement prohibit anything that would actually let you us unlimited. http://webmasterfaqs.org/is-unlimited-web-hosting-a-scam/ http://webmasterfaqs.org/is-unlimited-web-hosting-a-scam/
  - smackfu 13y ago
    Yeah. Dreamhost kindly asked me to switch to their VPS service a few years ago when I was using too much CPU.
marquis 13y ago
I have about 15 droplets on DO right now and none of them are close to using a TB even over a year (but we don't use them for production). I'd bet they are banking on this for most cases. I checked out Verizon's new cloud beta yesterday, and while they haven't announced pricing maybe they can do a good deal on bandwidth given that they own so much of the network.
cperciva 13y ago
Transit costs an ISP (who buys 40+ gigabit circuits) about $1/megabit @ 95th percentile. 1 Terabyte is about 3 megabits/second fully loaded for a month - So, presuming that DO has to pay for their pipe, that 1 TB costs them $3. Except that nobody ever has an average bandwidth utilization equal to their 95th percentile utilization. And Amazon probably has a lower mean-to-95th-percentile ratio than most ISPs, since a lot of their customers are "peaky" to begin with.
gaadd33 13y ago
Not saying its the best bandwidth but I'm pretty sure you can get $1/Mbps from Cogent on 1Gbps commits (or you could about 2-3 years ago when I was talking to their sales people). I would expect Amazon and DO's costs to be significantly cheaper.

Retric 13y ago

Or they plan on overages. They charge '$0.02 per GB thereafter' which works out to 20$ per TB so they break-even on bandwidth at ~1.2TB. Sure, some people can get vary close to 1TB without going over but for most people it's hard to manage bandwidth that exactly.

bluedino 13y ago

Exactly how Dreamhost/Hostgator can offer 'unlimited diskspace/bandwidth/puppies' for $6 a month or whatever.

pgrote 13y ago
Two ways: 1) They oversell their capacity. 2) Their terms of service agreement prohibit anything that would actually let you us unlimited. http://webmasterfaqs.org/is-unlimited-web-hosting-a-scam/ http://webmasterfaqs.org/is-unlimited-web-hosting-a-scam/
- smackfu 13y ago
  Yeah. Dreamhost kindly asked me to switch to their VPS service a few years ago when I was using too much CPU.

marquis 13y ago

I have about 15 droplets on DO right now and none of them are close to using a TB even over a year (but we don't use them for production). I'd bet they are banking on this for most cases. I checked out Verizon's new cloud beta yesterday, and while they haven't announced pricing maybe they can do a good deal on bandwidth given that they own so much of the network.

cperciva 13y ago

Transit costs an ISP (who buys 40+ gigabit circuits) about $1/megabit @ 95th percentile. 1 Terabyte is about 3 megabits/second fully loaded for a month - So, presuming that DO has to pay for their pipe, that 1 TB costs them $3. Except that nobody ever has an average bandwidth utilization equal to their 95th percentile utilization. And Amazon probably has a lower mean-to-95th-percentile ratio than most ISPs, since a lot of their customers are "peaky" to begin with.

gaadd33 13y ago

Not saying its the best bandwidth but I'm pretty sure you can get $1/Mbps from Cogent on 1Gbps commits (or you could about 2-3 years ago when I was talking to their sales people). I would expect Amazon and DO's costs to be significantly cheaper.