@ Muskiv

Allow me to use an analogy:

1 litre of water costs around 0.25/= from the City Council water supply. But, when a blue chip company provides bottled water to their board during their director's meeting, they buy half-a-litre of the water at ___ /= (insert the price at which you would supply that water if you got the contract)

My point, everything in business is costed. The price you actually acquire the hosting space for becomes an extremely tiny part of your total cost. In some cases, it could be less than 0.001% of the cost of delivering to your client at their standards. Remember, all businesses are 70% similar in their dynamics. Thus, if a business strategy (figures, plans etc) are logical in one business, they will probably also make sense in another (eg, a blue chip will not take up a supplier without a certain amount of proven experience, a certain level of fiscal and technical disclosure, certain levels of legal abilities etc)

These are business issues.

Davis

On Thu, 2010-11-18 at 15:31 +0300, muskiv wrote:
@Davis - Seriously?

On Thu, Nov 18, 2010 at 3:12 PM, Davis Waithaka <daviswaithaka@gmail.com> wrote:
A blue chip company pays you for the bureaucracy involved in getting the contract, handling various demands on your offer after you are the identified supplier,  levels of bosses to please and also the cost of assuring them that you are a stable and worthy supplier.

These are business, not technical issues.

Davis




On Thu, 2010-11-18 at 14:56 +0300, muskiv wrote:
Came across a blue chip company paying web hosting fees to the tune of Millions per annum.


Was wondering about 2 things:


1. What could be the possible drivers of these kind of costs for web hosting?


2. What variables can be "played with" to bring down the costs?




Best,


MK 
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