Tirade against Slash and Burn Web Hosting Companies

I had a call from a potential client introduced by a friend. When asked what is his web space offered by his host? Answer was 10 GB! Email space? Unlimited! Bandwidth? Unlimited. I asked further, is it a Singapore based server? His reply was Yes!

Singapore Web Hosting costs far more than USA web hosting as our bandwidth costs are much higher. Wholesale price for datacentre quality bandwidth typically range from S$250 to S$350 per mbps. This is 1 to 1 bandwidth , not overselling bandwidth of 1 to Infinity.

Even in USA, some 200 GB had emerged but unlimited? Each client you are getting is typically a nail in your coffin. Singapore market do not have the economy of scale of USA market. Simple economics tells you that such companies won't survive.

It is good to venture out, to be an entrepreneur, but an entrepreneur needs to know basic mathematics! I remembered an exchange with an unlimited space provider, when asked what if I dump in a 200 GB archive into his system, he said he uses the most advanced SAN storage devices and can up the storage quickly. A Sub $10/mth hosting company using SAN? The last quote I had for a SAN implementation for an MNC was in excess of $30 000 and that was for a tiny SAN capacity!