Cheap Web Hosting – Does It Exist

Cheap Web Hosting

Web hosting has come a long way with the emergence of many cheap web hosting providers. Hosting sites incurs certain costs, making it a charged activity for you. Here are a few thoughts on Cheap Web Hosting  , putting things in perspective.

Low cost Hosting – Hosting Expenses

Hosting involves the fixed cost of hardware and variable costs each month (or any temporal period) of bandwidth. From the cheap servers costing a thousand bucks to 20,000 , each one has its certain limitations of space and bandwidths. 1 Tera byte maximum (practically) size available these days  may look large space for an end user. But for host, its peanuts, considering amount of subscribers they have. 

Furthermore on normal network of 100 mega bit per second, host can make public only 30,000 GB of space each month. Now for instance if 50 GB of space along with 500 GB bandwidth is given to each subscriber at the normal cost of $10 per month. The overall income for host is only $600 per month, as the connection could only be given to 60 subscribers.

So how do the cheap web hosting service providers meet both end and keep on providing the services to their subscriber with support look like a mystery, isn’t it?

Cheap web hosting – Selling more than capacity ?

Well its not a mystery no more.  Cheap web Hosting service providers sell their services way more than their capacity, easily 10 times more.

For clarification consider this example.

If an insurance company has to compensate each of their customers’ claims they can’t do it. Simply because they had sold policies whose associated sum assured and other benefits are way more than company’s own assets worth.

Number of policy holders exceeds company’s financial strength considering on average the claims would not exceed a certain limit. Similarly these cheap web hosting companies know that all of their customers will not actually use up their allocated space and bandwidth.

So instead of offering the same services to 10 subscribers, they sell it to 100 customers. However there is still a limit on overselling. But still if space and bandwidth requirement by subscribers reache the available bandwidth and space. Term of service and policies are designed to act as safeguard by these cheap web hosting companies.

In the write up which you hardly read contains the clause restricting services use. So you can’t actually reach the threshold of server per user.

Is cheap hosting good ?

Consider all the options before actually choosing the web host. These cheap web hosting service providers give you options against some extra money, resulting in improved server performance.

The extra money that you pay in the long run enables the service provider to improve its performance and perform necessary upgrades. So in the end both parties are winners.

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