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Dedicated Server starting at 2.99 EUR / month
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This is funny:
But they actually did, so basically one + for OVH, Anyway, it seems they do assign a /64 to each dedicated.
I am not commenting about the 10 Eur line since it may or may not make a loss, it is perfectly possible it doesnt, maybe even turns a small profit, but 4 Eur is not possible to make a profit and even admitting it does return 1 Eur a month profit, it is still too low to be worth it, but it cannot do that.
I feel people are forgetting many things cost money in the real world, including the money that OVH raised to make huge empty datacenters that now are supposed to be free, a given, so filling them costs noting in terms of space and maintenance because they are understaffed and the big french wages and fiscal costs associated with them are not important. Also maybe interest rates are low these days, however, considering a normal 5 % interest, for 200 mil you have 10 mil interest a year, the equivalent of 200K KS2G income, considering the 4 Eur price, ONLY FOR THE INTEREST !
Let alone maintenance costs, power, traffic, PARTS to build them and replace the defective ones, wages for workers that make them, change parts, transport parts, buy them, manage payments, payment processor fees, so on and so forth.
Yes, at 4 Eur it is still a loss, that I am certain about, but for 10 Eur, that is a bit of a gray area, I do not know their special prices due to the economy of scale, how much it costs to maintain the DCs which are new now, more or less, how are they paying the workers, etc, so it is possible they dont make a loss, but that is only a possibility, not certainty, while at 4 Eur, I know for sure it is a loss making product and was designed as such from the beginning.
@Maounique They are obviously not losing money on this or they would not do it. You may not like OVH and that is fine. I am not saying this line of servers is making them money but it is doing something positive for them or they simply would not bother with it. Bringing people in the door perhaps. Word of mouth goes a LONG way.
Also OVH as far as I know has never raised prices on a specific product after X amount of time. So I don't see these servers going up in price. Now they may lower bandwidth or something though. They have done that in the past!
OK, any reasoning behind that statement ? Other people quoted economies of scale, but I am still not convinced the DCs are free, or the parts to build the KSs because only then the deal was not a loss.
I am perfectly in agreement with the fact this is bringing people in, that is why I say the money come from an advertising budget of sorts, but it remains to be seen if the average LEB customer is likely to buy more expensive products where OVH is not the cheapest just because they have a KS2G there, even if they are exclusively from EU, and, most importantly, only some countries in EU. I havent heard of any romanian which got a KS2G, for example, any ppl in the baltic states, for example ? Greece, Cyprus ? Portugal, Slovakia ? Even if there are, probably not many. But, as I said, even so, I still believe these money have been thrown out the window and many suspensions will follow if they are to save some of it.
wow. That is an insane deal.
I am sure coca cola is losing money on the free branded cups they are giving away, yet they still do it
Pure monetary profit is not always the only profit sought from some deals.
Yeah I got a similar thing too. It looks like a boilerplate drone message saying "we do not support you, gtfo to the forum", and then somewhere in the middle there is one line added, which is an actual answer to my question
There is a difference there, coca-cola is not giving away coke bottles or give you a perpetual refill for 1 cent a bottle, those are perks, same as some DCs or even VPS hosts are giving t-shirts or even laptops. But they do not discount your VPS with the price of the t-shirt permanently just because you live in the EU, for example.
They might be able to restart the offer at 4 Eur for EU ppl and run it indefinitely, they are big and can afford it to some point, but eventually reality will kick in and their investors/banks will ask their capital back or some interest/dividend and it is obvious KS2Gs will not help with that, even at 4 Eur a month.
64GB RAM, 4x 4TB SSD Disk, 256 IP Address, Free ipv6 - dedicated server - $1/m only (You must agree with NSA/prism policy)
Finally, got my KS2G. Quad-core N2800, apparently.
@awson that's actually 2 cores / 4 threads.
They actually do. Go to $FASTFOODBRAND and order a menu. You get free refill as long as you want. The same counts for any sports even where Coca-Cola is a sponsor (just like Redbull etc), you get free drinks for the masses. It's called marketing. And those losses can be taken into consideration tax-wise to reduce your overall tax payments.
OK but then how many KS2 customers have or will get a bigger server? I for one had never heard of OVH before this, I ordered a ks2 but then realised the mSP is far better spec and price than a server I have elsewhere so ordered one of those as well, so the KS2 - a loss leader has got them a mSP customer from which profit will be made, so from me as a customer they are making a profit, and I am sure I am not the only one.
That doesnt happen here, but even if it does, it does not apply in OVH's case.
IF OVH would give these along with, say, one of their VMWare offers, or Pro plans, cool, that is marketing, if it would give them on hosting forums, or geeks gatherings, ok, if they claim you have the right to a subsidized product from the sale of other products to other people if you live in a certain area, then it is no longer ok, but I can understand it as marketing.
I am not disputing the fact this is done for advertizing, in fact the others claim it can be a valid self-sustainable offer and I counter with arguments it is not so, I am disputing the viability of the offer, the fact that it will go on forever and it will be extended to people from outside EU. One or another of these things could happen, after all, OVH has the right to throw away investor's money, I cannot guess yet from the data at hand how far are they ready to go with this, but I can say it is a failed move, it will attract the wrong crowd, the kids, the abusers, the traffic hogs, the DDoS magnets etc.
They planned it poorly and executed it awfully, it remains to see how it will end.
Technically they don't have any investors (the company is 100% owned by the Klaba family), they have creditors who they've borrowed a few hundred million from.
http://www.ovh.com/us/a1112.ovh-com-190-millions-dollars
After about 24 days, finally got my KS2G.
CPU is N2800 x 2, piu...
[root@ks3359*** ~]# dd if=/dev/zero of=test bs=64k count=16k conv=fdatasync; unlink test 16384+0 records in 16384+0 records out 1073741824 bytes (1.1 GB) copied, 10.5103 seconds, 102 MB/s--2013-08-22 11:45:02-- http://speedtest.london.linode.com/100MB-london.bin Resolving speedtest.london.linode.com... 176.58.107.39, 2a01:7e00::4b Connecting to speedtest.london.linode.com|176.58.107.39|:80... connected. HTTP request sent, awaiting response... 200 OK Length: 104857600 (100M) [application/octet-stream] Saving to: ``/dev/null'`100%[===================================================================>] 104,857,600 11.2M/s in 8.9s
2013-08-22 11:45:12 (11.2 MB/s) -
/dev/null' saved [104857600/104857600]Power-on hours: 18
So you ordered on the 29th?
Nope, payment on 25th, authorized on 26th.
Ah there goes my hope, I ordered on the 29th
Coca-cola is nothing more than flavoured water. This is real hardware created out of raw materials and energy which requires additional energy to sustain. Unless there are some huge bulk buying discounts or some hardware manufacturers are co-investors or there is a huge load of unsellable/bankrupt stock somewhere out there something has to give.
They must be borrowing at zero interest rates or planning to use the hardware to run their own server farms/search engines or something if customers give up their nodes.
You should have a look at how the servers are set-up in the OVH datacenters. Except for the mainboard, ram and disk everything is done by OVH themselves. And since they own several datacentres they just buy in bulk. Besides that the Atom-Servers (2g kimsufi) are relatively cheap. Bandwidth does not cost OVH much, they are a telecom company within France, they own their own cables and routing through Europe. Energy for the servers is cheap in France besides that OVH does only cool with normal air from outside and let's the servers run at higher temperatures. Even the costs for wages are relatively low as they do not really provide service for the Kimsufis. The overall time for a ROI for the small Kimsufi shouldn't be that long.
Additionally, you have to see that those small Kimsufis serve as an appetizer for the other servers. And as we can see from the forum here, quite a few not only ordered the 2g but mSP and up. And for the bigger servers the price-level is completely different.
Oh my god... Yes, coca colas clearly don't cost as much to make as to sell, but the profit is also used for marketing. Hardware? Same thing, do you really think it costs like $300 in materials to make a decent chassis? no, do they sell it at about that rate? yes.
There will always be low- and high margin players in the market, they all have benefits and disadvantages. ANY major manufacturer of the hardware we use around here can bend for bulk, if they're willing to is something else
They certainly do make profit on the other kimsufis, so they need the hardware anyway. And maybe they DO make a loss on the 3EUR one, but why care as long as kimsufi as a whole doesn't make a loss?
A board with atom and a hard drive+ram cannot come at less than 100 Eur, say, for the sake of argument it is 50 Eur (the whole thing) that they do not cool their DC (absurd, in summer there are 30+ degrees at times even in northern france) and they do not run only KS2G there, let's say the work is free, the power is free, traffic is free, but switches are not free, paypal tax is not free, taxes to the french government arent free, interest is not free, even at 5%. So, for a year will gather 36 Eur, say they pay the hardware (and dont come with the idea that they already have it as it is old hardware they already used, as some said before, because there are so many arguments it isnt) and from the second year they have the hardware free, making 36 more euro to pay for the interest, the switches, then taxes, the interest, broken parts (without cooling the failure rates will be quite high, but that is so preposterous that has no merit being discussed here, but, even so, some parts, say 10% will break, this means at least 5 Eur a piece, so, grosso-modo they have 0 profit the second year too, presuming there is no actual loss) and all the profit will come in the third year. By that time, the DC already needs repairs, the bank needs it's money, the employees will already strike, etc.
And all this leaving aside energy costs, employees cost, traffic cost, considering a ridiculous price of 36 eur for a unit, nothing for chasis, PSU, their repairs, and in the third year, not only that the computing power will already be obsolete and ANY VPS will beat the dual-core atoms in CPU power and even prices will probably be lower for similar specs, but failure rates for equipment running hot for 2 years plus will be much higher than 10%.
No, people, there are no miracles, this is run at a loss for pure advertising, I would suggest not to get your hopes too high for dropping the EU residency as a condition, or even extending the current deal even for 4 Eur for much longer. Who got it, take good care, dont forget to renew, always pay in advance, keep it shutdown when you dont use it to avoid wild claims of abuse or god knows what. In a year or two, this deal will not be so hot anymore, but until then, it is really a steal of a deal, one you dont come across too often.
This is exactly what @Frost and I have written.
I was not replying to you, but to people which were claiming the contrary or hoping the restrictions will be lifted in the future.
As for the 10 Eur ones, I am not sure those make a profit either, but there is a much better chance it does. If we consider all costs, the 10 Eur atoms are not making a profit, but if we exclude the fixed costs and consider those are paid by other deals, they do at least break even.
OMG one of my Ks2G units arrived!
I wonder, talking of "appetizers", how many owners of KS2G will buy something more substantial?
Anyone willing to estimate and/or forecast?
I've not got my KS2G but have already ordered an mSP since ordering the KS
@Maounique,
I really expected more openness from you. You are just throwing your hate and ignorance you have against OVH here. The marketing behind it really isn't rocket sciene. Here's a break down, and stop making stupid statements now unless they're confirmed.
So where does it come down to?
Please stop spreading lies like this is a temporary promotion, sure I don't say it won't happen to be shutdown but that would be because OVH is unpredictable, it should be fine cost wise. (I at least expect this to last till the line-up gets revised)
EDIT:
If you did some slight research you would find out they put big effort in finding new banking partners in this knife-sharp new line-up/businessplan