How can MediaFire (and other online storage websites) afford to offer unlimited storage space, as well as unlimited bandwidth?
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6In many ways it works the same as the all you can eat buffets. – Zoredache Jul 27 '10 at 23:23
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@Zoredache You say that, but I've seen some people get through a dozen or more plates at a time at one of those places! :O – Tom O'Connor Jul 28 '10 at 07:01
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@Zoredache -- I love the analogy lol. It makes sense now. – Wazle Jul 29 '10 at 04:50
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I gather that they basically work on the principal that:
- Nobody will use 100% of their storage
- Nobody will use 100% of their bandwidth.
They're basically taking a gamble on the above statements..
A lot of their bandwidth will be provided with interesting peering arrangements, as well as a few transit providers.
Storage is also cheap, and becoming cheaper, as long as speed and performance isn't a real problem. Caching data will help alleviate any real disk slowness, so it's not as noticable that they're using 5400 rpm disks, not FC connected disk arrays.

Tom O'Connor
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Which is the same principal that gmail uses with its (currently) 7.4gb of space offered – Mark Henderson Jul 27 '10 at 23:05
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They also store the user uploaded data for a period of time before erasing it to make space for new user data. – Luis Ventura Jul 28 '10 at 00:30
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Okay, that makes sense -- just like the all-you-can-eat buffet analogy. Thanks. – Wazle Jul 29 '10 at 04:52