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Why is there a huge cost difference between hosting companies?

by Armaan
06/10/2013    7:59pm

Can someone tell me why there is such a big cost difference between Hostgater or Bluehost versus Rackspace. Hostgater or Bluehost provides unlimited storage and bandwidth, but Rackspace provides limited space and bandwidth with much higher monthly cost. It is the opposite of what I expected.

Thanks


1

by DeltaIT 06/10/2013 8:12pm

The hosting services that you were looking at with a lower cost were shared hosting services. This means that you are sharing the resources such as CPU and Bandwidth with several other users. In most cases you are sharing resources with thousands of websites, emails, databases, etc..

Services such as Rackspace provide dedicated CPU and Bandwidth. In most cases CPU is more important than bandwidth and storage.

So, in short, you get what you pay for. There is no such thing as unlimited bandwidth or storage. You usually run out of CPU before running out of those other resources.

You can always read the fine print in most of the shared hosting providers and you will see that they mention that if you use too much CPU, they have a right to turn off your site.

Hope this answered your question.

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