February 10th, 2021
What is the 95th percentile, and why does it matter?
By Adam Leeflang - General Manager - Products
What is it?
If you run a network, you’ll be interested in the 95th percentile and what it means for network usage and possible spikes in your network pipe. It is a good number to use for planning network usage.
In general terms, the 95th percentile tells you that 95 per cent of the time your network usage will be below a particular amount. You can use this figure to calculate network billing for metered usage.
What information do you need to collect?
There are three things you’ll need to know to perform a percentile calculation
1. The percentile number. The 95th percentile basically says that 95 per cent of the time your usage is below this number, and the other 5 per cent of the time it exceeds that number.
2. Data points. These are the pieces of data you have collected. In the case of network usage, they would be based on network use for a set period, perhaps a day, a week or a month. The data would be collected regularly, and then collated. The more data points you use, the more certain you can be of your final percentile calculation.
3. Data set size. This is the range of the data point values you have collected over a period of time. Statistically, the greater the size of the data set, the more reliable your calculation will be.
How is it calculated?
Once you have all your data points, it’s fairly easy to calculate the 95th percentile.
Here’s an example that might help to explain it better:
The data points that have been collected for network usage are 3, 2, 5, 1, 4.
The total number of entries K = 5.
To calculate the 95th percentile, multiply the number of entries (K) by 0.95:
0.95 x 5 = 4.75 (let’s call this result N).
Now arrange the data points in ascending order.
The list will now be 1, 2, 3, 4, 5.
By removing all values greater than 4.75 (the highest 5 per cent of the data), you can see that the next highest remaining value is the 95th percentile, which in this case is 4.
This means that you would expect 95 per cent of all data measurements to fall at or below 4.
Why use it?
The reason the 95th percentile is so useful in measuring network usage is because it provides an accurate picture of how much it costs. By knowing the value of your network’s 95th percentile, it’s easy to identify spikes in usage. If you are billing clients for network usage, it’s common to rely on the 95th percentile as a basis for billing.
For example, if you have a monthly billing period, (and you have used data points collected from a monthly usage cycle) the 95th percentile allows a customer to have a short burst in traffic (36 hours or less in this case) without being charged for over-usage. This is known as burstable billing and there is a good article about it on Wikipedia [link to https://en.wikipedia.org/wiki/Burstable_billing].