When it comes to IP transit services, choosing the right provider is only part of the equation. Businesses also need to pay attention to how they are billed for the connectivity they rely on. Traditional billing methods often charge based on maximum bandwidth usage, which can leave businesses overpaying for brief spikes in traffic. This is where Exascale’s use of the 95th percentile billing model becomes a game-changer. By offering cost-effective, efficient, and fair pricing through this model, Exascale ensures that businesses get the bandwidth they need without incurring unnecessary costs. IP Transit.
What Is the 95th Percentile Billing Model?
The 95th percentile billing model is a widely used method in the IP transit industry that helps strike a balance between accommodating fluctuating bandwidth demands and providing cost efficiency. Here's how it works:
Over the course of a billing period—typically a month—Exascale takes continuous measurements of a customer’s bandwidth usage. These measurements occur at regular intervals (usually every 5 minutes), creating a large dataset of usage points by the end of the period. Excluding the top 5% of the highest data points (outliers), the remaining 95% of usage data is used to determine the billing rate.
Effectively, the 95th percentile method discards temporary traffic peaks that are not representative of typical network usage. This makes it a fairer model, as businesses are not charged for short-term spikes, such as those caused by backups, updates, or one-time high-traffic events.
Why the 95th Percentile Matters to Businesses
Traditional billing models, which rely on peak bandwidth measurements, can be both inflexible and unfair. For example, a single instance of unusually high traffic could set the rate for the entire month, even if a business’s typical usage is much lower. For businesses that need occasional bursts of high bandwidth, this approach often results in paying for capacity they don’t use most of the time.
Exascale’s use of the 95th percentile solves this problem by focusing on typical usage patterns rather than anomalies. This means customers only pay for the bandwidth they use consistently, ensuring no overcharges for infrequent spikes.
Advantages of Exascale's 95th Percentile Model
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Cost-Effective and Predictable Billing
The 95th percentile model provides businesses with a fairer, more predictable billing system. By eliminating outlier data points, this method aligns pricing with actual bandwidth needs, reducing unnecessary costs for businesses. For companies on tight budgets, this can free up valuable resources for other operational needs. -
Flexibility to Handle Traffic Bursts
Businesses no longer need to panic over occasional traffic surges. Whether it’s an unplanned software update or a marketing campaign that goes viral, Exascale’s 95th percentile model ensures businesses can handle temporary bandwidth demands without incurring penalties in their monthly bills. -
Encourages Scalability Without Fear of Overbilling
Exascale's billing system is ideal for businesses experiencing growth. Companies can scale their operations and experiment with traffic-intensive applications without worrying about ballooning bandwidth costs. -
Aligned with Customer Satisfaction and Performance
Exascale’s commitment to transparency and fairness reflects in its adoption of the 95th percentile model. Unlike peak-based billing models, where customers often feel penalized for rare events, Exascale's approach builds trust and loyalty by ensuring businesses get value for the services they pay for.
How Exascale Stands Out with the 95th Percentile Model
Exascale’s implementation of the 95th percentile model enhances its overall service offering, making it a standout provider in the IP transit space. Combined with their advanced infrastructure, low latency, and SLA-backed reliability, this pricing approach further solidifies Exascale as a customer-focused provider.
For instance, rather than burdening small and medium-sized enterprises (SMEs) with rigid payment structures, Exascale’s model adapts to their unique traffic patterns, offering them both flexibility and affordability. Large enterprises, meanwhile, can scale confidently, knowing that their billing reflects typical demands rather than rare peaks.
A Smarter Way to Pay for Superior Connectivity
Exascale’s 95th percentile billing model is more than just a pricing method—it’s a testament to their dedication to efficiency and customer satisfaction. By aligning costs with actual usage, eliminating penalties for spikes, and offering flexibility for scalability, Exascale empowers businesses to optimize their connectivity without compromising budgets.
For companies seeking a cost-effective, transparent, and performance-oriented IP transit partner, Exascale delivers the perfect solution. With advanced services designed to support modern business needs, Exascale continues to provide reliable, fair, and scalable internet solutions backed by innovative pricing strategies. It's not just about staying connected—it’s about staying connected on terms that work for you.