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Push it further. Go into full loss on a whole node and sell 8GB VPS. Put the competition out of business, reap the rewards.
Sure sounds like a plan
Actually you might be on to something, maybe that is the plan, companies that can survive just wreck the market by operating at a loss for a few years while destroying the competition.... hmm, interesting.
I have an idea.
Sell VPSes with 1GB guaranteed RAM but 31GB vSwap.
Precisely. If you can survive selling products so low that it creates a hole that your competition has no choice but to dive head first into, knowing they can't survive it, you win. It's a dirty tactic, but it's a legit business tactic.
Of course, I suggest LEB providers diversify their markets. I know that LEB made Catalyst, but I won't let it determine the fate of Catalyst.
@jarland yup I think your absolutely right, maybe it is time for the gloves to come off.
I only anticipated a step, the trend was set in the 2011. Will see how it will do.
We sell 3 openvz for each kvm sold, against any effort I put to sell kvm (even the offer of 1GB KVM at leb prices sold less than a similar promo on openvz).
Some discount codes of our today joke were applicable to both KVM and OpenVZ, do you guess on what those 70-80-90% codes were used?
There wasn't a 70% code :P Only 75% which was changed into 65% at some point (??)
yes they where was 65 and 75 % (9R4TKHQE8P and PZCV951QY3)
I would have bought this one.
Is this one from today?
No, today was a joke, not a promo :P
It was several months ago :-)
Now you don't need any promotion (you can use the exclusive serverbear code however :-) ).
https://my.iperweb.com/cart/customized-kvm/
Compose the KVM you like...
i thought they will only eork on ovz
The competition in any industry always has a choice of whether they dive head first into something they know won't be profitable for them.
He who does it (openvz or any product) best also doesn't have to compete solely on price and is able to charge a premium price . Example: uptimes of 200 or 300+ days and reliability that rivals that of a dedicated server are common on IntoVPS's openvz offerings which allows them to charge a higher price for their openvz boxes and they're managed to grow to be larger than any of the LET "giants" like ChrisVPS because they have a good product not because they are the cheapest).
If you provide a premium service or product in any industry, and concentrate on differentiating yourself from the competition, you can largely ignore the players who have little to offer beyond "low prices".
Yes, but in the right situation you can put them in a place where their only choices are failure or failure. Doesn't work right in this market, but it can in others. You can see it in small town grocery stores going out of business because of Walmart. Sometimes people can't turn down cheaper prices, and they'll leave you behind, quality ignored. You can compete and sink or sink for not competing. If you are in the right market and play your cards right, that "choice" you speak of is an illusion. You will have sealed their fate. If I have a billion dollars in the bank and you have $10,000, I can take a loss longer than you can. That's business.
Yeah well, if you are subsidized by sales in unrelated goods (like selling, hmmm colo) you can sell your idle boxes as VPS nodes. One outfit around here seems to do quite a bit of that across their many locations.
Prometeus is making bank with enterprise customers. So subsidizing the VPS offers to some degree.
There's nothing sustainable about 2GB at $7 let along 5GB.
I elect myself president of the "I BOUGHT IT AND GOING TO USE IT CLUB". We strive to utilize our resources
Membership is free and we'll show you how to do the same. 
That club would flatten the subsidized deep discount VPS companies as well as those who are on here selling less resources still for little money. Me I am found of sticking the unused RAM into a populated RAM DISK... Fully populated of course
Partly correct.
There were millions of examples of little guys making it bigger then the banks.
While Uncle has a solid business and doesnt need the VPS part to survive, this does not mean he threw his financial might behind it and hired tons of ppl for support, for management, 24/7 phone lines or bought some company.
Starting from 0 is fun and the business IS profitable. Probably not as profitable as others, but if someone can make a buck with top hardware, network and support at laughable or truly unbelievably low prices with basically 2-3 staff, then the others that fail must be doing something wrong.
Any market can produce profit at any given time, almost, a true businessman will not pick the market to go in by the returns OTHERS are getting, but by his ability to get A RETURN for his investment. Once any profit is obtained, you can start to build it up. Improvements can and should be made all the time. This is all about efficiency, thinking, planning, resource allocations, it is economy, works in every market more or less, even if the natural law of the market gets distorted a lot today.
You are wrong, if anything, projections look very good for that offer. The servers can hold twice the current load once we add more RAM and they are already breaking even.
I think there's a difference between small town grocers and the web hosting industry though.
The small town grocer may be able to offer superior in store service but the actual product the consumer takes home from the small grocer is the exact same product they can take home from Wallyworld. When the products are exactly the same then lowest price is usually the final determinant of who gets the sale.
With webhosting on the other hand you may be offering a plan with the same specs as your competitor, but there is more to the product than just the 4GB RAM/raid 10/blablabla specs. There is also reliability, trustworthiness, etc which are a large part of the final product. If you're dealing with a business customer things like quality are more important than quantity. . If providers that I consider good quality like you or Anthony were offering a plan in a location I needed for $40 and a shovelike host was offering the same plan for $5, I'd choose the $40 plan over the $5 plan.
+1 @DomainBop.
does anyone know how to setup a 4.75GB ramdrive
Thats probably the best use of it
Google it???
/dev/shm ????
http://www.vanemery.com/Linux/Ramdisk/ramdisk.html
Worst tutorial ever...
And as the first paragraph says, the tutorial is... deprecated.
http://www.thegeekstuff.com/2008/11/overview-of-ramfs-and-tmpfs-on-linux/
No need for kernel access
(I've used tmpfs)
@yomero i didnt think you need to mount, as
df -h
says you have too (on all the vps i have checked, they are there)
Agree
But probably you prefer to specify where to mount them, and the size of each tmpfs filesystem
Seriously? Insane. Why do so many people prefer OpenVZ over KVM? Because I don't see it.
This trend has been going on for a while now and I dislike it just as you do. However (and this is a big however), @prometeus tells people it is oversold and performance could be crap some times. All other hosts just act like you get 100% dedicated resources. The @ChicagoVPS drama (with the database leak) is a good example of what is wrong with the OpenVZ business.
Honesty makes a lot of difference, in my opinion. It's not Prometeus' fault that others are foolishly going to offer that amount of RAM as dedicated (while it isn't). And customers either aren't critical enough of what they buy or just don't know what they buy. That part of the market, which my gut feeling says is rather large, will probably bite on all these offers and set the trend.
Lets keep it like that ...
You are totally right with that statement, it is not their fault however they are one of the big boys at the table around here and I was disappointed to see that they did this knowing full well that this is exactly what would happen.
If they did not then I question their grasp on the industry and in turn ability to actually manage this.
Its up to people to decide which of these massive VPS's they are going to purchase.
At the moment I'd only go with prometeus when purchasing such a VPS because I trust them and I know they have the infrastructure to cope with problems should they arise.
All it needs is a bit of common sense from the customers. If providers want to compete with prometeus then nobody can stop them, that's business.
Aye. I'm sure I could do it, I just don't want to