For the majority of managed colocation customers, one the main reasons they invest in managed colocation solutions is due to the pricing of bandwidth. For those of you who don’t know, bandwidth (sometimes called transfer) refers to the amount of data per second your network connection can move (or transfer). However, when it comes to managed colocation, bandwidth typically means the amount of data transferred to and from a hypervisor in a given billing period.
That’s great, but what does monthly bandwidth transfer rates have to do with my managed colocation solution? It effects your bottom line in a big way.
Managed Colocation Bandwidth Saves Money
When you utilize managed colocation services, providers charge the end user bandwidth rates in set amounts per month and overage billing called 95th Percentile.
Set Colocation Bandwidth Pricing
Concerning defined amounts per month, most colocation and web hosting providers will supply their consumer with a defined limit of bandwidth transfer per month. This limit is fully determined by what you, the end consumer, is willing to pay for. Certain providers will supply their consumers with 2TB per month, some will supply the consumer with 20TB per month. It depends on the colocation provider or Cloud hosting provider.
The key to choosing how much bandwidth you need per month is finding the median of how much bandwidth your company uses over a multi-month period i.e. using a bandwidth calculator. By understanding your average bandwidth use over a multi-month period, you can comfortably select how much bandwidth transfer of data you need so you don’t eclipse or come anywhere close to eclipsing your monthly allotment. In the long term, this will save you a ton of money.
To simplify it, think about your monthly bandwidth allotment like a cell phone contract with a contractual amount of data. You can text and surf the webs to your heart’s content as long as you remain under the monthly mandated data limit. Once you eclipse that limit, you are charged an overage fee. Managed Colocation network bandwidth works in the same fashion. Through a simple bandwidth test and bandwidth calculator you can figure out your monthly transfer need.
95th Percentile Internet Bandwidth Fees
Another form of server colocation network bandwidth billing is 95th percentile. 95th percentile billing allows the colocation Internet services company to monitor an end users bandwidth usage over a given amount of time (30 days is typical) at an interval of every 3 – 6 minutes. The information is then stored in a database. Once a billing cycle comes to term, the colocation bandwidth pricing rates are charged to the consumer by billing for the 95th percentile usage of overall bandwidth use during the month. For the majority of consumers who aren’t running gut busting bandwidth transfer over a given billing cycle, 95th helps to save money but charging for an average fraction of the users overall bandwidth frequency usage.
Managed Colocation Bandwidth vs. Unmanaged Colocation Bandwidth
The bottom line here is money. The reason you invest in managed colocation hosting bandwidth is the access to quick, powerful and affordable colocation bandwidth. If you were to go at it alone, unmanaged colocation, your colocation bandwidth rates would prove to be more expensive in the long haul by a factor of almost three to one. It simply isn’t worth it. By utilizing pooled network bandwidth capabilities, not only will your bandwidth transfer rates be quicker with managed colocation, you will pay less for it.
To learn more about Av5 Managed Colocation Bandwidth Transfer rates, click here.
To take the Av5 Managed Colocation Bandwidth Speed Test, click here.
To view the Av5 Managed Colocation Bandwidth calculator, click here.