Friday, May 11, 2018

Liable for overselling

If a reseller oversells a service, who is liable - the reseller or the source?

Overselling means that resources are being stretched to the limit and beyond. In other words what is going on is overselling. Overselling for a host is when they get more clients whose requirements exceed the available resources.
The disadvantages of overselling web hosting is that client sites take much longer to load. Many times they will be inaccessible altogether, resulting in a classic case to illustrate why cheaper can often be much more expensive.
The advantage of overselling is for a web host is that they can generate more income for the same amount of web hosting resources.

Reseller overselling is basically when a host allows a reseller to oversell their resources i.e selling more than the available resources. In this case, I think the reseller is solely liable for overselling.
I think typically overselling is a bad thing.

Oversell means to sell beyond the means of delivery so it does not look good, but if you do it carefully based on your experience, make it meaningful with some statistical data then it can be done
Overselling is a normal business practice, used in many online and offline businesses. It is a responsibility of the company offering the service to live up to its promises, nothing more.

I say that overselling is a smart business decision if you know what you are doing. I strongly disagree with over-population of servers/resources. You have to know when to stop, but none the less, you end up losing a lot of resources if you do not.

To be able to afford the costs and still make a profit hosts start overselling. Overselling is basically selling more than what you can provide. In this case, instead of putting 30 customers on a server, they put 300 customers. This is done based on the assumption that no user will use all of their allotted space and bandwidth.

Absolutely, even the electric company does it, based on the assumption that everyone won't turn all their electronics on at once. This can only be taken to a certain extent before it starts becoming a problem, and the server starts getting overloaded. So what happens if everyone actually used all their bandwidth and disk space? Nothing, because the Terms of Service and Acceptable Usage Policy don't allow it. If you read these two pieces you will find that every host has a clause that mentions CPU and Memory Usage. You will most likely hit these limits far before you hit the space and bandwidth limits.

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