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Bandwidth price - VPS vs Public Cloud
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Bandwidth price - VPS vs Public Cloud

Good morning everyone!

I've been looking at different offers lately and there's something I just don't understand: the difference in bandwidth pricing between typical VPS providers and Public Cloud (OpenStack, CloudStack) providers.

Is it me or the difference in price is huge?

Most VPS providers (including "fake cloud" providers like DigitalOcean and Vultr) include 1, 2, or even 3TB in their basic plans (5-10$/month) and bandwidth overage fee is around 0.02$/GB.

Public Cloud providers do not include any bandwidth and charge 0.10$/GB. The 5-10$ cloud instance plans generally have comparable specs to VPS.

I understand the different pricing for storage, as they probably offer redundant storage and whatnot, but for bandwidth? Why is it so expensive?

At 0.10$/GB, 1TB of bandwidth alone would cost 100$ per month. That's on top of the price of the instance itself of course.

So what you guys think? Am I missing something?

Comments

  • I think the bandwidth quality is simply higher. Just do a traceroute and see the difference for yourself.

  • serverianserverian Member
    edited August 2014

    The traffic limit comes with a VPS, i.e: 1-2TB is basically an oversold amount. Its sustainability basically depends on the fact that most people won't use even a fraction of it.

    On hourly billing providers, you actually pay what you use. So they charge you what it actually costs plus some extra.

  • Oh... it actually makes a lot of sense! Thank you @serverian.

  • That explains why most plans come with 1TB almost nobody ever use, but what about the extra bandwidth cost ?
    @agonyzt states AWS costs ~0.10$/GB while VPS providers are much cheaper.

  • a lot of it is just brand perception. why does rackspace charge an arm and a leg for a dedicated server? why does monster cable rip people off? they have the branding and market power to do so... it also takes huge money to keep that marketing machine going, and you cant fund that off budget prices.

  • With linode you can pool your bandwidth so people usually will use more than expected. Like if you have a site eating 10TB a month, just spinning up 5 or 6 1G plan and you are good. Much cheaper than actually paying the overuse fees.

    Thanked by 1hashwaltz
  • @xavier66 said:
    That explains why most plans come with 1TB almost nobody ever use, but what about the extra bandwidth cost ?
    agonyzt states AWS costs ~0.10$/GB while VPS providers are much cheaper.

    It's there to just cover their ass if you do use it all and go over, and help recover some of the costs. Here's an example of pricing per mbps: http://drpeering.net/white-papers/Internet-Transit-Pricing-Historical-And-Projected.php

    This isn't what most providers will pay though. Depending on their commit, how much their upstream is marking it up, etc etc - it could be a lot more.

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