Guide,Colocation,Bandwidth,Bil technology A Guide to Colocation Bandwidth Billing
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In addition to the cost of renting spacein the facility, bandwidth charges account for the largest portion of costs.The bandwidth charge by a Dallas colocation provider refers to the amount ofdata that is transferred to and from the facility. Most providers will includea base amount of bandwidth made available for use. This quota is measured ingigabytes (GB). The amount of bandwidth offered ranges from as little as twoGBs to hundreds of GBs per month. The GB use will depend on the customer. For users with larger or more variedtransfer requirements, a charge per GB will be applied for transfers made over thebase limit. Packages and pricing options will be made available to the customerwhen negotiating the contract. It is important, however, to understand how thefacility will calculate fees. Straight Data Rate The straight data rate is the easiest tocalculate. The traffic to and from the facility is metered and a set price isapplied per GB. This charge is billed to the user monthly. The rate per GB canvary, and there are different pricing plans offered by most colocationfacilities in Dallas. These vary depending on the speed and type of connection.Better rates can also be negotiated for higher transfer volumes. Customersshould be aware that the charge will cover both the inbound and outboundtraffic. 95th PercentileThe 95th percentile method is another calculation used to measure bandwidth based on peak utilization.Average bandwidth measurements are recorded at regular intervals, commonly threeto five minutes apart. At the end of the billing period, the readings are collatedand analyzed. The top 5 percent of readings are discarded, and the resulting measurementbecomes the billable rate. This rate is then applied uniformly across thebilling cycle by some Dallas colocation facilities to determine the overallmonthly fee. The 95th percentile rate is basicallyused to handle spikes in usage. It allows users to use larger-than-normalamounts of bandwidth but not pay for the peak usage. Users with consistentlyhigh levels of data transfers with infrequent but drastic spikes in trafficbenefit most. There is, however, the possibility of paying for large volumes ofunused bandwidth. With this model, only the top 36 hours of peak traffic are discarded within a month. If thewebsite was bursting for 48 hours, a user would be stuck with this higher rate forthe month. Final ConsiderationsIt is important for a company to have a good estimate of how much data itmight transfer. If unsure, many Dallas colocation facilities will offer aflexible contract. This allows for renegotiating a higher base level ofbandwidth or different package.
Guide,Colocation,Bandwidth,Bil