Calculating Internet Costs Per Customer

Posted 4.4.05 by

What do you spend per customer for your internet offerings?

One of the many promises of the Internet is the ability to hyper-scale. Contrast that to a store front. While your local coffee shop with 5 or so patrons might get a flood of 20, a website might go from a few dozen to a few 1000s in a split second. So how does a responsible CTO calculate and communicate Internet costs per “unit” to the executive team? It’s hard but really important to calculate. Generally your budget won’t support an infinite number of users – especially at first.

So, you have to decide what level you want to support. Getting a grip on cost/unit is a critical tool to make that decision and a great benchmark to work to improve over time. As you purchase the necessary services (servers, hosting, bandwidth, storage, backup etc.) calculate your total cost/customer so you can help your CEO manage to it.


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