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95th Percentile Billing

About 95th Percentile Billing

Many of you may be accustomed to seeing hosting plans with bandwidth quotas given in GB. At Clara Online however, quotations are given using 95th percentile billing which sometimes causes confusion for some of our clients. We think this is the fairest and simplest solution for dedicated hosting solutions. The aim of this article is therefore to explain 95th percentile billing so you understand the basics and how this system benefits you as a customer.

At Clara Online, we use a "burstable" internet connection for our dedicated and colocation hosting plans. All of our dedicated and colocation servers, depending on your preference, are connected to a burstable 100Mbps or 1Gbps connectivity uplink port.

95% traffic analysis

How do you calculate the monthly cost?

Simply put, we monitor bandwidth at peak utilization and discard the top 5% of the utilization peaks. We take a sample of your bandwidth usage every 5 minutes and calculate the total data transferred inbound and outbound. We then take the highest of these numbers (in or out) and divide by the sample time period which gives us a bps (bits per second) figure. These samples are all stored in a database and entered into a usage graph which, at the end of the month, is sorted by the highest readings downward. The top 5% readings are then discarded. The next remaining reading is therefore your usage for that month of billing.

How does this benefit me?

Traffic is irregular and tricky to predict. We understand that clients will experience peaks in traffic that may not be repeated at other times in the month. With 95th percentile billing, the peak 5% is removed from our calculations. If your usage is below your committed bandwidth after the 5% is taken out, you will not be billed an additional amount. This way, you are only billed based on your normal usage and you don't need to worry about sudden spikes in traffic.

GB Traffic vs Mbps measurement

1Mbps is roughly equal to 300GB. Below is an approximate guide to GB equivalents of given Mbps (95th percentile) amounts.

  • 900 GB = 3Mbps
  • 1.2 TB = 4Mbps
  • 1.5 TB = 5Mbps
  • 1.8 TB = 6Mbps
  • 2.1 TB = 7Mbps
  • 2.4 TB = 8Mbps
  • 2.7 TB = 9Mbps
  • 3 TB = 10Mbps

What happens if I go over my committed bandwidth?

We charge for overages beyond your agreed bandwidth limit but don't worry! We understand that it can be difficult to predict how much bandwidth you will need. We will let you know in advance when your usage appears to be too high. We can also discuss upgrading your bandwidth if you foresee higher traffic in future.

Want to learn more?

Request a free quote