Does Dreamhost oversell?

Almost all inexpensive web hosts oversell in that if every customer used all their bandwidth and disk space allotment they would not have enough. That's how they are able to provide the prices they do as they know most customers will only use a fraction of the total. What really matters isn't if they oversell, but how they handle those relatively rare customers who use everything offered.

Most hosting companies seem to find some reason to kick them off. Dreamhost simply adds more servers and rebalances their load. An excellent example of this is what happened in late 2004 when Dreamhost decided that each domain's busiest day of the billing month would not count toward their bandwidth usage.

A few of their customers saw a way to take advantage of this. These customers set up 31 separate subdomains, each of which served huge files one day of the month -- for free. While Dreamhost revised their policy after a couple of months (upping overall bandwidth and eliminating the free day), they ... more.

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