Overselling is not uncommon in the web hosting industry. MD of a young web hosting company cast a professional eyes on overselling within the web hosting industry, explored the implications from a providers viewpoint and from a customer’s viewpoint.
Excerpt from the article follows:
Overselling, put simply, is a term used in the hosting industry where a company advertises plans that are unsustainable if every one of their clients was to use the full resources of the package.
For example, a host may have a server with 300GB of storage space and offer plans with 50GB of space each at £5 per month. As soon as 6 clients sign up for an account, all space on that server has been allocated, however the company can see that those clients are only using around 10GB in total.
Here’s where the overselling comes in.
It is pretty much a certainty that not every client will use the full resources allocated to their account. With only 6 clients using 10GB of storage space, the hosting company can carry on selling accounts until the server starts to show signs of becoming full.
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