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Questions on becoming a VPS provider
I'm thinking of entering the biz. One of my questions is, how on earth are other providers able to offer 1TB/mo transfer on a $7/mo plan? 1TB/mo is about 3Mbit/sec. How much does 1Mbit/sec/mo cost to the average VPS provider?
If I were to offer a plan with 1TB/mo transfer, are there any anecdotal reports or stats on the percentage of customers utilizing non-trivial transfer that I can expect?
Comments
Everyone oversells, not many people will use 1TB/month.
You missed the EASY boat on the rapidly growing VPS market. There are a ton of established companies offering great services for low prices now. If you wan't to start one as a hobby that's cool, but if you're looking for ROI and an actual livable wage you better have deep pockets to invest in developers and infra.
It would be an interested experiment for a big company to start using low end VPS as edge notes in a CDN ...
Big hosts and CDN companies already have contracts with data centers and bandwidth providers with global commits. It is more cost effective to host themselves, as they can burst 20gig 9-5 in asia, burst 20gig 9-5 in the USA and the combined peak might only be 22gig or something. Etc etc.
No reputable CDN uses LET VPS.
in general, from my research 2014-2015:
1Mbit US - 1-3$/USD (pricing stable throughout)
1Mbit EU - 1-3€/EUR (pricing stable throughout)
1Mbit Africa - 8-10$/USD (very "cheap" in ZA, else expensive, skews results)
1Mbit South America - 6-10$/USD (Cheapest Brazil)
1Mbit Oceania - 7-10$/USD (Cheapest Australia)
1Mbit China - 40-100$/USD (Depends where, LAX sometimes available at less than 10$, HK never below 50$)
Since you're going to begin, you should buy a Corporate Title badge at WHT and get going. You'll be a professional web hosting company in no time. Make sure you attend the dementia bound HostingCon event every year as well to get inside information never heard before! You'll be able to make industry announcements as well and even get the ability to track your own keywords on their shitty vBulletin forum too! Whoo!
Ehh yes, sounds great.
why do low end? competitions' as stiff as any other plus clients that don't know the difference between ovz and kvm, yet buys unmanaged services simply because they are cheap............