Web Hosting Companies, Fair Competition And Unfair Competition
The web hosting industry is bustling with activity. There are new companies coming up and old loss making companies selling out. Competition is very hard. Some web hosting companies such as India Access are still selling web hosting at outrageously high prices. For example, India Access is selling merely 250MB of web space at $136 per year. At the same time, other companies such as Blue Host sells unlimited hosting for $47 per year. There is such a huge difference in price, and such a huge difference in the amount of space offered. Why is this so?
Are you intending to upload your WordPress blog, and create a quick website using WordPress? You need to understand what you need and why you are buying hosting from a particular company. If you are intending to use WordPress, you probably don’t need more than 100MB of space. Why buy unlimited space then? The idea is, not that you can use hundreds of GB of space, but you can be rid of the mental worry of planning the amount of space you need. You can worry more about developing the website, as you really need to.
On the other hand, if you want merely a small 10-15 page website, you need not pay for “unlimited”. If you can make a rudimentary estimate of the number of pages you need, and you can significantly save even more. Siteground offers 10GB space at $3.95 per month, and at the same time BlueHost offers unlimited hosting at $3.95 per month – why would you chose to take only 10GB? I will explain now that, you are better off, by choosing the 10GB one.
When you pay for a certain determined amount of space, you get much more bang for your buck. This means that you are able to use more resources in terms of CPU processes, RAM allocation and simultaneous processes. You will almost never find these details on the website of any web hosting company. This is a well guarded secret of the industry. Why do they not tell you this? They need to constantly change those things so that all the users can use the servers. Imagine this, there are 200 users on one server – one user is using a ton of CPU in a very complex php script, but all the other users have only HTML pages. At this point, you can afford to allow that one user to use the excessive CPU usage that he needs. But now imagine that all the users need a ton of CPU? What do you do now? You have advertised unlimited space, and packed the customers on one server like a pack of sardines. The only option is to start restricting the CPU and add more hard drive space to the server, or buy a new server. Buying a new server is very expensive and would affect your bottom-line. So, what do you do? You go ahead and restrict the CPU. Why would this not happen if you had a restricted space account? This would not happen, because almost always, all users having restricted space account would be on one server, and all users having unlimited accounts would be on another server. The total users having limited space accounts are generally relatively low – which gives you a larger share of the overall resources.
Don’t fall for tricks and fancy advertisements. Be smart and estimate your requirements. Most of the users who take unlimited accounts, think they are getting a good deal by doing so. But that is not always the case. Estimate your needs and buy smart.
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