Why Having the Most Bandwidth Is Not Always Best
Thursday, March 20th, 2008In the hosting world, bandwidth has always been one of the major ‘wow-factor’ figures providers use to differentiate themselves from the masses. A prospective customer might believe that if Provider A has a single 100 Megabit to the Internet and Provider B has 2 GigE’s to the Internet, then Provider B would be faster and a better choice for their business.
What would you say if I told you that you could get a faster transfer rate and lower latency from a provider with a single 100 Megabit uplink than a provider with multiple GigE’s?
It sounds broken; each GigE is 1,000 Megabits, how could a single 100 Megabit link be faster? It all comes down to a term referred to in the hosting industry as utilization.
Utilization translates to how ‘hot’ each of a provider’s links are running. Not just uplinks but internal links between routers and switches as well. The very best way to make this immediately apparent is the 10 Gig - 14.4 Modem scenario.
If you were to take a 10 Gig Ethernet (~10,000 Megabits!) link, plug it in to a router, then use a 14.4 modem to dial in to that router and receive internet access, you would still only run at 14.4 speeds. Common sense, right?

That said, if you were to connect a DS-3 (~45 Megabits) link to a router and then connect a 3 Megabit DSL line to it for internet access, you would be running at 3 Megabits, much faster than a 14.4 modem.
When spelled out with these figures, sure, its obvious. But lets think about this on a larger scale.
Back to Provider A and Provider B from above. Let me add some important information to the comparison of these two providers:
Provider A:
- Uplink: 100 Megabit
- Current Utilization: 5 Megabit
Provider B:
- Uplink: 2 x GigE
- Current Utilization: 1,997 Megabit
Provider B is running ‘hot’ here, as they are only 3 Megabits from filling their uplinks to capacity. What this means is, regardless of their total amount of bandwidth, only 3 Megabit is still available for your use. They could hand you a gigabit uplink to your server, but the fastest speed you will ever receive is 3 Megabit; that’s all that is available.
Provider A is running VERY cold in this example, with only 5 Megabits of usage on a full 100 meg Ethernet uplink. This means you could pull up to 95 Megabits of bandwidth before hitting any bottlenecks, obviously a much better choice.
This all might seem obvious, but frankly it is quite common in the hosting industry. Some providers feel that so long as customers don’t complain, there’s no reason to add additional bandwidth. Some don’t even add bandwidth after complaints! As soon as the provider adds bandwidth, costs are increased. Now the money coming in from customers no longer covers the bandwidth costs.
So, next time you see 40 GIGABITS OF CAPACITY in marketing speak, make sure you check to see how much of that ‘capacity’ is in use ![]()