Understanding overselling ratios in 'unlimited' deals
The mathematics of node density are not complex, but providers rarely disclose them. Here is what every buyer should calculate before signing any Terms of Service.
- RAM per account = total server RAM ÷ account count
- Burstable claims rely on statistical multiplexing: not all users peak simultaneously
- CPU minutes are the hidden bottleneck; unlimited bandwidth does not imply unlimited compute
I obtained documentation from a former employee of a budget host operating under a different name. The figures are illustrative.
- Server specification: 4GB RAM, 2 vCPU cores
- Accounts provisioned: 400
- Effective allocation per account: 10MB RAM if fully subscribed
- Terms of Service section 14.3 permits termination for "resource abuse" without numerical threshold
The provider in question marketed "unlimited websites, unlimited databases, unlimited email." The overselling ratio exceeds 100:1 against any reasonable usage pattern.
Industry practice varies. Shared hosting typically tolerates 50:1 to 200:1. Beyond that, the model approaches lottery mechanics.
Has anyone else obtained internal figures? Documentation strengthens any subsequent complaint to regulatory authorities or class action counsel.
-RR