The web hosting is a highly competitive industry, with many companies struggling desperately to remain in the race. Sometimes few of them might be so desperate that they might tell you exactly what you are want to hear, just to make few bucks from you. Most of these companies offer “unlimited bandwidth” and “unlimited diskspace” in many of their packages. Well, actually there is nothing like unlimited bandwidth or unlimited disk space. Typically the way this setup works is that a big company may rent out small chunks of bandwidth to smaller web hosting companies.

These small companies do the same to the web hosts, and these web hosts further sell these small “chunks” to you depending upon your needs. Most of these small web hosting providers bank on the fact that you will never use so much bandwidth if you were using their package that offers unlimited bandwidth. There are several issues that may occur when you are relying on these types of promises. If a unmonitored web hosting company ends up with a few customers who use up the entire bandwidth allotted to them by the data center, then all customers under web host will see their website going down because data center may shut off the server as soon as the web hosts exceed the allocated limit. If data center doesn’t shut down the website, they will most probably charge huge bandwidth fees.

The end result would be that web host would go neck deep in losses and would have to close their company. So in the end, you will also see your website going down! However, if web hosting company monitors the bandwidth usage, they will shut down your website if you exceed their own estimations for your site. They won’t risk a shutdown of their server or lose customers just because you are using too much bandwidth. For instance, if a web hosting company can deliver 20,000 GB of bandwidth and 2200 GB of disk space, and offer a plan with 2500 GB bandwidth and 250 GB disk space.

They think they’ll be able to do that easily because 90 percent of their customers never use more than 8 percent of allocated resources. Mathematically, they can have only 10-12 customers, but here they are overselling to make money. Therefore, providing unlimited bandwidth is impossible for any web hosting company, because bandwidth ultimately depends upon the resources allocated to you, RAM usage, CPU time and Database connections. Therefore, before allocated unlimited bandwidth, web hosting company will have to first arrange it.

Hosting companies add a clause in their conditions that if the customer exceeds the reasonable resource usage limit, they have the right to suspend the account for resource misuse. This is the way web hosting companies trick the users. If you have an online business, you should do adequate research and choose only a reputable web hosting company that does not offer such false promises. When you are running any online business, you would want to ensure that your site remains online on 24/7 basis. The best way to ensure that is to stay away from companies making false promises.