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Is there a demand for Low End Cloud VMs?
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Is there a demand for Low End Cloud VMs?

bitronictechbitronictech Member
edited June 2013 in General

We have been using Xen for our VPS and virtualizor control panel. However we are moving most of our new sales to OnApp cloud. Obviously this entails automated failover, backup and thus higher pricing.

The prices would go up. Do you think there is sufficient demand for small Cloud VMs under $7/mo to turn a profit?

Comments

  • Ewwww cloud

  • SpiritSpirit Member
    edited June 2013

    I am afraid that it won't work. Maybe at WHT but not at lowendbox/lowendtalk.
    Most people here see mainly offered resources vs price ratio and for 7$ expect something BIG resources wise. Yes, I know, you may say that your product is superior, etc, etc than average.. and this could be even true but still, this market is so big now that people pay peanuts for BIG boxes and they are happy enough with them so don't have reason to switch from there to more expensive "superior" product with less resources.
    I have doubts regarding sufficient demand for small Cloud VMs under $7/mo here unless it's much under 7$ or Cloud not so small. But that's just my opinion of course.

  • Yeah I was thinking along the lines of 10GB SSD 512MB RAM and Share of a Xeon 3.4 core for around 5-6 dollars. I'm just trying to guage demad and get some ideas as to how I should design the cloud.

  • @bitronictech said:
    Yeah I was thinking along the lines of 10GB SSD 512MB RAM and Share of a Xeon 3.4 core for around 5-6 dollars. I'm just trying to guage demad and get some ideas as to how I should design the cloud.

    I'd work. Some KVM / XEN here go for that pricing still.

  • udkudk Member

    @bitronictech said:
    Yeah I was thinking along the lines of 10GB SSD 512MB RAM and Share of a Xeon 3.4 core for around 5-6 dollars. I'm just trying to guage demad and get some ideas as to how I should design the cloud.

    What would you offer that's better than the likes of DO for similar prices? That is, imo, who you should be looking towards.

    Thanked by 1rm_
  • awsonawson Member

    DigitalOcean seem to be profiting and their cheapest plan is $5/mo.

  • Hate to break the news to everybody in here, but Digital Ocean is not cloud

  • @awson said:
    DigitalOcean seem to be profiting and their cheapest plan is $5/mo.

    Must be going in the pocket or up the nose as you have to manually submit a Paypal payment lolololol

  • chrispchrisp Member

    Cloud is a terrible word imo. So basically what you offer will be a vps with failover and backups, right? I think @jhadley does offer that in the same price range (or even a little bit higher) with onapp for a while now, so it may be working fine.

    I personally stick with good providers. It doesn't matter to me how you as a provider offer a good service (and if you call it cloud or whatever) as long as you do. And that includes a lot of things like support, network availability and other stuff.
    So I think if you do a good job as a provider your reputation will raise and your product will sell.

  • MaouniqueMaounique Host Rep, Veteran

    We will be testing the water with this.
    After months (read, more than half a year) of discussing alternatives, testing and such, we have a somewhat working install.
    However, the integration and plans design as well as solving some bug still ie ahead.
    Salvatore wishes to offer a real cloud, IaaS, failover and all included, for example, you buy something like a dedi with failover and san storage and you play as you wish with your resources, including creating a virtual office with virtual stations for your remote employees, for example.
    It will all share an IP pool, routing over openswitch, certain disk space and ram, CPU shares and all.
    If we do not manage to do such a thing, we may still use the interface to switch away from solus.
    At present Salvatore is experimenting with cloudstack after ditching proxmox due to resources allocation issues.
    We are seriously more advanced now, it has been already deployed and we read the book to try to configure it for our purpose.
    since the chunks of resources will be seriously higher than those of a regular VPS, the prices will be out of LEB area, therefore will probably be launched in other places.

  • rm_rm_ IPv6 Advocate, Veteran

    Yeah I was thinking along the lines of 10GB SSD 512MB RAM and Share of a Xeon 3.4 core for around 5-6 dollars. I'm just trying to guage demad and get some ideas as to how I should design the cloud.

    As noted above, you may just start with explaining how you're better than DO, we already see that you offer 2x less storage yet same or higher price.

    Also I checked your website, where's the hourly pricing? where's rapid create/use/delete of VMs, being billed couple of cents for each? You just seem to use the same dumb WHMCS as everyone else. Is that your definition of cloud?

  • erhwegesrgsrerhwegesrgsr Member
    edited June 2013

    Cloud can be referred to as:

    • automatic failover (SAN)
    • pay per hour
    • self allocate your resources (e.g. 2GB ram limit, you make an 1337MB ram box)
    • or simply, some shithole company that thinks it's a cool word but is simply referring to a regular VPS
  • bitronictechbitronictech Member
    edited June 2013

    I haven't added cloud VMs to the site as of yet. As aforementioned we are in the planning phase of our Cloud Infrastructure. Co-location is already worked out what I am trying to hash out is mainly the hardware types and sizes that we would need to be profitable. We plan on using OnApp. I.E. Automated failover/ Backups and pay per hour or pay per month.

    I understand what a cloud infrastructure is. However there are some fundamental differences, one being a SAN and automated failover. The other being the fact that you have multiple hypervisor nodes available for the processing for a VM to be done on the least used core across multiple nodes as opposed to solely on one hypervisor.

  • If you want to say that the differences between a redundant cloud environment and a standalone hyper-visor for VPS are non existent well, that's somewhat foolish.

    The benefit from the provider side is scalability without migration woes. I.E. if a client needs a larger hard drive and there is no hard disk available add another node to the cloud, at least in our case where we will be using the hypervisor integrated SAN structure offered with OnApp 3.0

  • bcrlsnbcrlsn Member

    If it was a good, reliable box, I'd be willing to pay $10/month for 128mb ram. It's not about getting the most ram/disk out of your vps it's about getting a reliable vps that you know a.)will have great performance b.)will have great uptime c.)will not be oversold and will have guaranteed resources.

    128mb ram with 10gb ssd being DEDICATED isn't too much to ask for $10/month, heck, even $7/month should be doable for that.

  • @bcrlsn said:
    If it was a good, reliable box, I'd be willing to pay $10/month for 128mb ram. It's not about getting the most ram/disk out of your vps it's about getting a reliable vps that you know a.)will have great performance b.)will have great uptime c.)will not be oversold and will have guaranteed resources.

    128mb ram with 10gb ssd being DEDICATED isn't too much to ask for $10/month, heck, even $7/month should be doable for that.

    The thing is there's not enough RAM to make overselling worthwhile, since on servers this small resources are actually used up most of the time (unlike for example a 4GB VPS with cPanel, which will only have its resources used up if there are enough concurrent visitors)

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