Re:The frequent fliers who flew too much
by losvedir on Monday May 07, 2012 @01:07AM
(#3937672)
> It boggles the mind every time I read about one of these "unlimited for life with a fixed initial cost" products.
"For life" is a particularly egregious example, but these sort of conflicting incentives are everywhere. It's one reason I've been so happy with the popularity of pay-as-you-go models in, e.g., AWS.
I've always been leery of "unlimited" hosting for a monthly fee because your incentives aren't exactly aligned with the host. NearlyFreeSpeech.net, for example, highlights that fact in their marketing materials that since it's pay-per-use, the more successful your site is, the more money they make, so it's win-win.
Netflix and home broadband also suffer from these problems.
Re:The frequent fliers who flew too much
by dlitwak on Monday May 07, 2012 @02:37PM
(#3940317)
if you do enough research, the "unlimited" hosting isn't unlimited at all. There are certain restrictions in the fine print. which is exactly what American should have done.
"For life" is a particularly egregious example, but these sort of conflicting incentives are everywhere. It's one reason I've been so happy with the popularity of pay-as-you-go models in, e.g., AWS.
I've always been leery of "unlimited" hosting for a monthly fee because your incentives aren't exactly aligned with the host. NearlyFreeSpeech.net, for example, highlights that fact in their marketing materials that since it's pay-per-use, the more successful your site is, the more money they make, so it's win-win.
Netflix and home broadband also suffer from these problems.