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I got a quote from a colo, saying

"I could do 3U, the power and 20 megs burstable to 100 for $250 a month with each additional meg billed to the 95th percentile at 6.50 per you would have he ability to burst if you needed it but not pay for the full 24/7 amount of the IP."

I'm assuming it means - 20Mbits unmetered, anything above is billed on the 95th percentile at the rate of $6.50/Mbit. Am I right? And how do you measure the $x.xx per meg, at 95th percentile?

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Don't you think it would be more productive to ask your host to clarify this instead of asking us to guess at their terms? – MDMarra Aug 31 '12 at 21:05
I asked the guy way too many questions already:) Plus I want a third-party explanation, before I jump into this offer. – timofey Aug 31 '12 at 21:46
A bit of advice: make your sales people earn their money :) – MDMarra Aug 31 '12 at 21:56
up vote 8 down vote accepted

It basically means throwing away the top 5% of samples of the bandwidth used above the 20-megabit/second contract rate... This is an unmetered link, so you can use 100 megabits/second when you need it... but the average usage needs to be below 20 megabit/second. The purpose is to determine your realistic and sustained usage pattern.

This is also described in greater detail in the Wikipedia "Burstable Billing" article.

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What does it mean when it says - "at 6.50 per meg"? Does it mean that extra bandwidth is charged at $6,500 per TB of bandwidth? – timofey Aug 31 '12 at 21:53
$6.50 per each additional Megabit-per-second above your contracted rate of 20 Megabits/second. – ewwhite Aug 31 '12 at 22:10
Got it! Everything makes sense now! – timofey Aug 31 '12 at 22:13

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