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Malaysia web hosting dilemma

Discussion in 'Web Hosting' started by jamestcs, Mar 16, 2006.

  1. #1
    Recently, i have a lunch with a friend who is a web hosting provider. He told me that the web hosting busiess is extremely competitive nowadays. It is because there are many web hosting providers offer high hosting space with low price. He showed me an advertisement from a local provider : 3GB space, 15 GB bandwidth with only RM 180 (USD 50) per year.

    I asked him, "can this provider survive or earn profit with such low price ? "

    He told me, " Well, I don't know, but for myself, if I offer more than 500 MB for RM 180 (USD 50) per year, i actually making lost -- if the client fully utilize the 500 MB"

    It means many web hosting providers are playing a dangerous game - Offer huge space, low price , but at the same time "expect" the client will not utilize full space.

    It this circumstance, can you expect good servces from the hosting provider that offer with such low price ? Meanwhile, it is also easy for the competitors to pretent as a client to sabotage the hosting provider, by sign up the 3GB space, fully utilize the bandwidth and space with only RM 180.00 (USD 50) , What a low cost to saborage a competitor !

    So, Web hosting providers, you want to fight for price and space, or fight for service and quality ? ;)


    This article is written by myself , source from http://malaysiawebdesign.blogspot.com/

    ______________
    James
    Malaysia bedroom set manufacturer
    Singapore car dealer
     
    jamestcs, Mar 16, 2006 IP
  2. onedollar

    onedollar SEO Consultant for Hire

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    #2
    It is called overselling and many hosts do it:)
     
    onedollar, Mar 16, 2006 IP
  3. diamond008

    diamond008 Peon

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    #3
    True, actually,most of the users are use only a very small portion of the space and bandwidth.
     
    diamond008, Mar 18, 2006 IP
  4. Corey Bryant

    Corey Bryant Texan at Heart

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    #4
    I am glad someone said it.

    When we started hosting - I looked into things like this and never could figure it out until I realized it was marketing words. You get a few clients who will actually use those resources and it could almost put you out of business if you are no careful
     
    Corey Bryant, Mar 18, 2006 IP
  5. cpucandy

    cpucandy Peon

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    #5
    I heard this somewhere that the average site uses less than 1 gig per month on bandwidth.
     
    cpucandy, Mar 18, 2006 IP