Re: [cobalt-users] (no subject)

["Chuck Hatcher" <cobalt@xxxxxxxxxxx>]

Assume you are a large ISP, serving a large number of dialup customers.
Your circuits (multiple T3's) are sized to provide these cusomers with
decent service, and by far the most traffic is from the greater Internet to
your customers.  In this case you have a considerable amount of bandwidth
available in the other direction, so you build a data center and start
leasing dedicated servers at a price many (myself included) cannot resist,
many more cannot understand, and many more cannot believe.

I don't find anything wrong with Rackshack's business model.  It isn't that
I expect to use 150GB per month, or that I expect to have 500kbps committed
bandwidth at my disposal continuously.  But I am impressed so far with the
average bandwidth available to me there, I am comforted that I will not pay
any excess bandwidth charges, and I see little risk since there is no
contract, and if things go bad I can just quit.  The worst dedicated server
experience I have ever had has been Dellhost, and the best, so far, is
Rackshack.  I do not expect to need their support unless there is equipment
failure, so that really did not factor into my decision.



----- Original Message -----
From: "Rodolfo J. Paiz" <rpaiz@xxxxxxxxxxxxxx>
To: <cobalt-users@xxxxxxxxxxxxxxx>
Sent: Wednesday, April 25, 2001 7:03 PM
Subject: Re: [cobalt-users] (no subject)


> At 4/25/01 09:39 AM -0500, you wrote:
> >I went for their RaQ2 which is only $70 a month with 150GB (IIRC,
> >certainly more bandwitdth than I can use!).
>
> You wanna try explaining to me how anyone can give you "real" 150GB of
> transfer per month for $70? This is equivalent to almost half-a-megabit
per
> second, 24/7, every second of the month... for $70.
>
> A T-1 line (1.5 Mbps) costs about $1,500. Smaller links are more expensive
> per unit, so a 512 Kbps link would cost about $1,000. But since they buy
in
> bulk, let's assume they get a T-1 for $500... absurdly low. How are they
> going to make money if they sell that for $210?
>
> Read your terms of use carefully. Betcha you were just so dazzled by the
> number you just haven't fully understood how it works.
>
> (It still might be a deal you're happy with... I'm not telling you to
leave
> them; just to know the difference between truth and marketing.)
>
>
> --
> Rodolfo J. Paiz
> rpaiz@xxxxxxxxxxxxxx
>
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