We previously discussed the 95/5 model, commonly used when charging for wholesale data capacity. I came across customers who prefer different methods to calculate their bandwidth utilization. Often the drive is to avoid 95/5 based on the perceived complexity in its calculations. Customers want a simple metric which they can audit. Nevertheless the models suggested are not always in the customer’s favor.
Let me expand upon it further. The following graph shows three models:
- 95/5 – Every 5-minute sample equals the total volume in Bytes passed during the 5 minutes divided by 300 seconds and multiplied by 8 to obtain bps. The 95th percentile of 5-minute readings over the month is calculated (e.g. sample 8,208 of the sorter 8,640 samples in a 30-day month).
- Average of daily peak-5-minutes – Every day the highest 5-minute reading is recorded. At the end of the month, the average of these peaks is calculated.
- Average of daily peak-1-hour – Every 1-hour sample equals the total volume passed during the hour divided by 3,600 and converted to bps. Every day the peak hour reading is recorded. At the end of the month, the average of these peaks is calculated.
Other networks will obtain different results. It’s quite difficult to predict which model is better for whom, without actually calculating it. At DiViNetworks we usually use 95/5 to provide our capacity at half price (see here our pricing models).
What is your preferred method to calculate your bandwidth utilization?