What is Overselling?

What is Overselling?

Overselling is a term used when a hosting provider sells more bandwidth and disk space than they physically have. Most websites will not use all the resources allocated by their provider, leaving the provider with leftover bandwidth and space each month.

Providers sometimes take a risk by selling the leftover space to other customers to maximize profits. This is overselling.

Overselling in practice

To provide you with a better example of Click Here: overselling, we will play out a typical scenario that’s quite common in the industry. Let’s assume that hosting provider X has 100GB of free disk space and 1500GB of bandwidth each month to sell. They offer only one package which includes 5GB of disk space and 75GB of bandwidth per customer; this means they can effectively take on a total of 20 customers.

Now, it’s fairly common that most of their customers will not use up the monthly allowance and have unused disk space and bandwidth. For argument sake, let’s assume that each client only uses 80% of their allocated resources each month, leaving a balance of 20GB of disk space and 300GB of bandwidth unused each month. The leftover amount is enough for the hosting provider to go and add four more clients to its server to create greater profits at no extra cost.

The problems with Overselling

receives a less than optimal service. What many providers fail to realize is this: when a server is running at maximum capacity, the processing power, memory usage, and maximum transfer speeds are affected.

A server may be built to host 500 websites and transfer 5000GB of bandwidth, but when put to into practice it’s not always the case. Servers that manage extremely busy forums or websites containing a lot of content, databases or scripts using resource-demanding code, every other website on that server can face decreased performance and even possible security threats as a result.

For example, if you run an online retail store selling physical products, your busiest period will be around holidays such as Christmas when people buy gifts for one another. Choosing a hosting provider who practices overselling can dramatically slash your profits if your website is always timing out or pages are not loading fast enough for your users to browse.

Virtual private servers and shared hosting

Two other hosting options available are virtual private servers and shared hosting, although cheap they do come with their own set of problems.

Shared hosting – as the name suggests, shared hosting is when you share a server with other customers – sometimes called a web hotel, customers who may require more resources at certain times of the day affecting your service.

These are known as bad neighbours in the industry, and hosting your site using a shared hosting plan can affect your website in the following ways:

  • Slower response times
  • Affect SEO rankings (rank lower in Google)
  • Increase website bounce rate
  • Create more security threats
  • Increase timeouts (website being offline)

If you’re running an online business using a shared hosting plan, this method puts too many things outside your scope, giving you no influence or control when neighbors hog up resources.

VPS – has the advantage over shared hosting in the fact that it doesn’t share as many things with its neighbors, this is because it’s able to separate server resources and implement caps, but it still has a few issues. For one, the only thing separating one site from another is what’s known as a ‘software wall’, although offering some level of security it will usually not be as secure as the separation which you can find at Weryon.

Most VPS hosting providers don’t implement ‘throttle limits’ during busy periods, a customer who abuses the server with heavy demands will affect your website performance. “CPU Steal” is such a metric showing how much of the CPU processing capacity has been taken by noisy neighbours. Finally, disk space on a VPS is shared by all customers, if several users need to read and write at the same time, disk performance can severely affect site performance and is very problematic for databases apart from opening up other websites on the server being open to possible backdoor security threats.

We recognize that overselling will not only cause short-term issues for our customers but also have long-term implications on performance and output. Running servers on full capacity can essentially ‘downgrade’ hardware performance over some time. Sometimes to a point where it’s unfixable causing huge problems for everyone else on the server. Unlike a VPS, apart from keeping ample of excess capacity, we utilize technologies such as DRS, that automatically moves sudden noisy clients to hardware with better capacity when needed – always making sure we deliver high and consistent performance.

With Weryon your website will be running at optimal performance 24 hours a day, seven days a week and 365 days of the year.

If you have any further questions about overselling, VPS, shared hosting or our services, send us an email, we are more than happy to help!

About admin

Dynamic, results-based sales strategist, with a record of over 15 years of achievements and proven success, leading to an increase in revenues of millions of euros, while providing visionary visual leadership in highly competitive markets.