Types of Colocation Bandwidth Tariff Plans

Sep 26
06:17

2012

Francis A. Hamer

Francis A. Hamer

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Partnering with a Dallas colocation facility is becoming an increasingly popular option for companies of all sizes. The facilities offer the benefits of a large IT department without the costs of managing and maintaining the site.

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Partnering with a Dallas colocation facility is becoming an increasingly popular option for companies of all sizes. The facilities offer the benefits of a large IT department without the costs of managing and maintaining the site. When planning to use colocation,Types of Colocation Bandwidth Tariff Plans Articles it is important to understand the fees charged by the facility.

Bandwidth is one of the largest aspects of colocation service pricing. Bandwidth, in terms of colocation pricing, refers to the amount of data transferred to and from a server. The charges are based on gigabytes (GB) used during a billing cycle. Often, providers allow a base number of data transfers ranging from a few GBs to much more. Charges per GB also range from a few cents to several dollars depending on colocation provider.

Dallas colocation centers will generally calculate bandwidth charges in one of two ways. One way is a straight data rate. Smaller servers will typically use this plan. The second plan is called the 95th percentile, typically used by larger servers.

Straight Data Rate

This type of connection is billed according to data transfers to and from the server in GB. The total amount of traffic is added up for a set billing cycle and billed to the customer. The rate per GB can vary, and there are different pricing plans offered by most colocation facilities in Dallas. These vary depending on the speed and type of connection. However, it’s very important for a company to negotiate a contract that might allow flexibility. There will be a charge for data used in excess of the negotiated package limit.

 

95th Percentile

The 95th percentile method is another calculation used to measure bandwidth based on peak utilization. Average bandwidth measurements are recorded at regular intervals, commonly three to five minutes apart. At the end of the billing period, the readings are collated and analyzed. The top 5 percent of readings are discarded, and the resulting measurement becomes the billable rate. This rate is then applied uniformly across the billing cycle by some Dallas colocation facilities to determine the overall monthly fee.

 

The 95th percentile rate is basically used to handle spikes in usage. It allows users to use larger-than-normal amounts of bandwidth but not pay for the peak usage. Users with consistently high levels of data transfers with infrequent but drastic spikes in traffic benefit most. There is, however, the possibility of paying for large volumes of unused bandwidth. With this model, only the top 36 hours of peak traffic are discarded within a month. If the website was bursting for 48 hours, a user would be stuck with this higher rate for the month.

 

Know Data Usage

It is important for a company to have a good estimate of how much data it might transfer. For users with larger or more varied transfer requirements, a charge per GB will be applied for transfers made over the base limit. This can get quite. If unsure, many Dallas colocation facilities will offer a flexible contract. This allows for renegotiating a higher base level of bandwidth or a different package.