30 July 2021

High Overage Fees & Rigid Commitments are Passé at CDN77

3 minutes read
Tomas Bacik
Written by Tomas Bacik

Continuous improvement of product and service aspects is a standard for most tech enterprises; pricing, however, often remains overlooked. Yet this is exactly what sets market leaders apart – their ability to quickly adapt and respond to client’s changing business needs.

At CDN77, all of our clients now benefit from having overage fees set at the unit price of their CDN traffic plan. What’s more is that they enjoy the freedom to easily upgrade or downgrade their plans on a monthly basis. 

Introducing the Overage Fee Ceiling

This month we've accomplished our long-term goal – a pricing reform where all of our clients have their overage (additional data that exceeds your subscribed traffic volume) fees equal to the unit price of their chosen plan.

How Does it Work?

When our clients consume more traffic than they subscribe to, we don’t see that as data excess, we would rather see that as growth that we’re here to support.

Let’s see an example. Imagine you’re subscribed to a 3,000TB Plan at $6,600 per month. This means your unit price is $2.2/TB ($6,600/3,000TB). When you transfer more than 3,000TB of traffic in a given month – let’s say 3,500TB – the additional 500TB will be charged at the same rate ($2.2/TB) as the previous 3,000TB. So, your final payment would be $7,700 ($2.2 * 3,500TB).

Over the course of the past 12 months we applied this pricing model to our Custom and High Volume plans. Preset Monthly Plans adjustment marked the end of the transition process this summer, which effectively means that the overage fees are now capped at the unit price for all of CDN77's plans.

Adjust Your Plan According to Current Traffic Needs

Internet usage has never been predictable. The 48% increase in global internet traffic during the 2020 pandemic is a powerful demonstration of traffic volatility. 

At CDN77, we reckon with changes in websites’ and apps’ popularity, traffic seasonality as well as sudden peaks in visits. 

While our 70Tbps+ network absorbs any unexpected traffic surges from the capacity point of view, we make sure to reflect traffic unpredictability also in pricing.

In practice it means that our clients have the freedom to flexibly upgrade or downgrade their traffic plan on a monthly basis according to their actual needs. With no rigid commitments in place, you get the optimal pricing solution, whether you’re experiencing rapid growth or going through a lower traffic span.

For example, you might need a 800 TB/month plan for January, then you can downgrade to 550 TB/month in February and upgrade to 3,500 TB/month in March – if that's how your traffic consumption works, it’s no problem for us.

The combination of flexible plan switching and flat rates for overage traffic makes CDN77 a partner to rely on in all stages of your business.

We’re committed to finding the best fitting solution for all of our clients by consulting their individual use-cases, on both technical and pricing levels. If you’d like to learn more about our services, reach out to our Client Solutions team at clientsolutions@cdn77.com.