Hi Cyber,
Let's have a look at The Planet's servers:
http://www.theplanet.com
Let's assume that:
1. They get a P4 3.0Ghz server from The Planet with 250GB HDD. They will be on this plan:
http://www.theplanet.com/control/ent/e300r_details.html
By default, it comes with 2GB DDR RAM. Why do they put 1GB DDR RAM on their page instead? Don't you think they will attract more clients if they put 2GB DDR RAM?
Another point is, the server would be US$299/mth (exclusive of cPanel & Fantastico). How many accounts must they host in order to cover the expenses? $299 / $12.95 = 23.08 ~ 24 accounts.
Again, 24 accounts would be:
24 x 15GB = 360GB
250GB - 360GB = -110GB
Where does the 110GB come from? Overselling again. Don't forget, that is the minimum account required to be on the server in order to maintain its expense.
Furthermore, for your information, secondary HDD can only be mounted as a backup drive. I can't recall any method to host clients' sites on both the HDD. Only the primary HDD is able to do so.
2. Our second assumption. They are on The Planet's Dual Xeon servers. Dual Xeons sound promising than P4. If they have so many servers, don't you think they will just put the best server spec on their site to attract their clients?
Some of my opinions:
- when the server load gets too hight I transfer the larger sites to a faster server
A: Sounds easy. What about the clients' DNS settings? Don't they have to waste 72 hours for the new DNS to propagate? Not to forget those larger sites are usually dynamic sites. It is a big hassle to transfer dynamic sites over and wait for the DNS to propagate.
- for example, I use P4's now, next week or so I will be using Dual Xeon 2.8
A: Why don't we see if the Dual Xeon 2.8Ghz will ready next week? No harm waiting, right?
- yes, I don't mind telling you my secret. The monthly plans tipically sell out in about 2 - 3 weeks and those pay for the cost and upkeep of the server. the 3 month plans and yearly plans is where my profit comes from
A: Is this a secret? Unless you are charging quarterly payments or yearly payments and you run your server for a few months then close it down, then you could earn a fortune. Logic maths tell me that they can earn more by selling monthly payment plans. Monthly payment plans are generally more expensive than quarterly/annually payment plans and thus, it generates more income. Not to forget, The Planet / Servermatrix does not have annual payment scheme. Whether you charge your client monthly/quarterly/yearly, they still charge you the same price every month. Since you charge your client less on quarterly/yearly payment, that means you are making less profit? FYI, no offense made to the owner, Mr.Saylor, but did he count clearly whether he could bear the server expenses if all his clients pay annually?
- hard drive space is not an issue, hard drives are very cheap. I might offer Windows next year but for now it is linux
A: Hard drives are not expensive if you buy it. But if you lease it from The Planet/Servermatrix, the story will be different.
- yes, I am registered as Turnkey Hosting and Design
- my registration can be located at the register of deads in Raleigh, NC
A: What did he mean by the registration can be located at the register of deads in Releigh!?
By the way, a quote from his post in WHT
I salute his honesty. But don't you think running a few servers by one man show is really tiring!? How can he manage to provide customer service yet at the same time manage all his servers? Again, I salute him
Here are some feedbacks on him in WHT:
http://www.webhostingtalk.com/search...der=descending
Anyways, I'm glad that there isn't any bad remark on him.
If you decided to subscribe to his services, don't forget to update us again!
Thanks.