6 WINTER 2022 Defining the Terms Shared bandwidth means you use the same uplink to your ISP as many other customers. This is most likely the type of connection you have at home. With shared bandwidth, speeds are advertised as something like “50 Mbps.” But, this speed is the fastest you can expect, and may be slower at any given time, depending on other limiting factors like the number of other users online. By contrast, dedicated bandwidth is bandwidth that’s allocated for use by your business only. Since you’re not sharing it with anyone, your internet speeds are not affected by other users and will not fluctuate. If you choose 50 Mbps dedicated bandwidth, for example, that is the download and upload speed you will consistently experience. A Crowded Interstate vs. Your Own Lane To further clarify the distinction between shared bandwidth and dedicated bandwidth, it helps to use the analogy of vehicles traveling on a highway. During rush hours, the lanes are congested with heavy traffic. You can get where you’re going, but it will take longer to reach your destination than at other times of day. The difference in speeds at different times is like shared bandwidth, which offers different data transfer speeds depending on the amount of online activity. If you had a lane on the highway just for your use, that would be like dedicated bandwidth. Without anyone else in the lane to encumber movement, you could always travel more quickly. Questions to Consider When deciding between shared bandwidth and dedicated bandwidth, ask yourself these questions: • How big a deal would it be to your business if your internet speeds slowed down sometimes? If you have a small business with relatively light internet usage, the less expensive option of shared bandwidth may be the right choice. However, a business that’s highly dependent on consistently fast internet speeds would be better served by the guaranteed speeds of dedicated bandwidth, which come with a Service Level Agreement. • Do you offer Wi-Fi to customers and visitors? Many businesses have dedicated bandwidth for use by their employees and shared bandwidth for guests in the lobby of the building. • Do you upload large files on a regular basis? Medical offices and other healthcare providers need to upload large files containing high-resolution scans and X-rays, which requires the faster upload speeds offered by dedicated bandwidth. • Do you use web-based applications? The 100-percent reliability of a dedicated connection is best for businesses using webbased applications such as Microsoft CRM or accounting software. To learn more, call Panora Telco at (641) 755-2424 or Guthrie Center Communications at (641) 332-2000. As a business owner or manager, you have important decisions to make regarding your internet service. One consideration that sometimes causes confusion is the issue of whether to use shared bandwidth, dedicated bandwidth, or a combination of the two. Shared Bandwidth vs. Dedicated Bandwidth What’s the difference between them and when should each one be used?
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