Overselling is an act of over-allocating resources like CPU, Diskspace, Memory and other limits invisible to the user. Overselling is happening everywhere nowerdays, but in no branche so badly and agressive as in the Hosting branch.
Offers go from rediculous high amounts of diskspace and bandwidth to even unlimited. 040 Hosting chooses not to oversell its capacity, this simply means we do not put more users on a server as it can handle, even while all these users maybe only use 20% of the diskcapacity of the server. Even though a user buys a 5GB diskspace it does not mean he will use it, but in theory he can, overselling is using this knowledge and places users on the diskspace a other customer already did pay for!.
This is more or less the same as an airliner which overbooks his reservations, they know that a certain pecentage of customers will not show up for the flight, but they want all the chair to be taken. In many cases this goes right, till the point both passengers show up. The airliner now needs to find a solution and pay back on of the customers and offering a new flight. In hosting it simply means the server gets a too high of load and is not able to serve the websites on it anymore the way it was designed to do. Not only affecting 1 other customer but all customers on this server.
As you can see in the above example 040 Hosting chooses to deliver better services instead of leaving its customers on a server which under performs.
