Our Policy Regarding "95th Percentile" Bandwidth Utilization

On a monthly basis, Customer purchases a minimum amount of committed bandwidth for each Service for the full specified term. To account for the instances that Customer's traffic bursts over the minimum committed amount of bandwidth, RackSys utilizes a billing method referred to as the "95th Percentile Rule" as defined below.
  1. RackSys shall invoice Customer on a monthly basis in advance for the minimum committed bandwidth at the predetermined rate set forth in the Services Order Form. The RackSys's SNMP bandwidth monitoring will sample (record a data point reflecting how much bandwidth Customer is utilizing at that particular instance) the inbound and outbound for each Service connection every 5 minutes and store those samples for a period of one month.

  2. At the end of the month, all the data samples for the inbound and outbound are collected and sorted from highest to lowest individually. The highest 5% of each the inbound and outbound are discarded, and the next highest remaining data sample on either the inbound or outbound is the "95th Percentile" number. This number is used as the basis for computation of any additional charges for that particular month of Service over the minimum committed bandwidth. If the 95th Percentile number falls below the monthly minimum committed amount, no additional charges will be assessed.


Customer has committed to 20.0 Mbps per month. RackSys gathers all data samples for the month of Service and sorts them from highest to lowest discarding the top 5%. For purpose of example the 95th Percentile for the month of Service was 75 Mbps. RackSys will bill Customer for the additional charges of 75 Mbps less the previously invoiced 20 Mbps of contractually committed bandwidth, or 55 Mbps. The 55Mbps of "overusage" will be billed at the rate stated in this Order Form. Further, if the 95th Percentile calculation resulted in a number less than 20Mbps no additional charges would occur for that month.

The following is the formula based on a thirty (30)-day month:

1 Sample  *  12  *  24  *  30=8,640 Maximum Total

5 Min1 Hour1 Day1 Month

5% of 8640 Maximum Samples/Month = 432 Samples/Month discarded. The highest remaining data sample in the inbound or outbound would be the 95th Percentile.

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