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Doing some calculations the 3EUR / month is probably enough to cover their power and bandwidth costs. The power is probably like 1 EUR/month. However if we think about ROI of the equipment, it is a different story. Lets do some rough math:
So this makes $170 hardware cost, excluding their custom case and power solution. $170 is about 125 EUR.
Ok, they are probably buying a lot of hardware. Let's say they have 30% discount, so the hardware costs them about 90EUR.
So if they use 1 EUR to cover the electricity / bandwidth cost and 2EUR to cover the hardware cost, that's 45 months, or almost 4 years to break even on the equipment.
OVH never was a competitor. Same for Burstnet and hetzner.
In a few months you will understand what I am saying, in the meantime, enjoy your OVH
@Maounique OVH is now a competitor, burst.net always sucked, hetzner is ok
But this is old hardware that probably paid itself back a long time ago. Also I do agree with @Maounique that this isn't permanent. Just a temp to get the new DC full or use the old hardware.
I think though what you are probably missing is that a lot of this is old, existing hardware, these boxes are not new to OVH they have been using them for years just at a different price so they will have long since paid for themselves.
@taronyu yes i was thinking of the same, but the HDDs at least appear to be almost new.
Maybe it's a PR stunt to increase their rating after their databse with customer's details was stolen. Or maybe they are counting on some price hike in the future. We will see if this price remains premanent.
HDD's are the only thing that is new as far as I know. They probably had to many complaints about crashing harddrives :P
@W1V_Lee Yes i assume the motherboards are not new, however the Atom N2800 only came to market less than 2 years ago (Q4'2011) so they can't be 5 years old. It is still currently the best Atom CPU on the market.
I am not sure what you mean, but OVH is not a competitor for us. They compete in price with hetzner and burstnet, none of them matters for us, we are out of stock on dedis costing 10 times more since last year or so and still get requests for offers.
I am also not sure that @rds100 did the calculation right, because it is not only bw and power besides the equipment, there are MANY other indirect costs, from cc processor fees to people handling those orders, from dealing with abuse to customer approval (ID checks and all that). There is also the replacement parts, considering the HDDs are old, as ppl say (which was proved not to be the case in most checs ppl did) they will have to be replaced with new ones when they break, unless they still have truckloads of the old ones.
No, it is not as simple as you imagine, as I said, I am absolutely sure they run at a loss, even reusing old equipment, even populating a DC that is not yet full, the french wages are not small and taxation is also not easy, how many ks you need to sell to cover 2 k eur an average wage ? How many people are busy with these boxes and orders for them ?
This is clearly at a loss, and even so, we are glad torrenters and gameservers will find a DDoS protected, cheap environment to thrive in. This will reduce our costs in terms of bw, cpu and ticketing time, hopefully, but, so far, had 0 cancellations today, I guess it wont work
As pointed out above they now are, and you just keep repeating the same "talking points" ("run at a loss, deny service, kick out, don't care, treat like dirt, illegal") over and over again in all threads about them, that just looks like you're trying to put up a smear and FUD campaign against them. That's not the competition methods I would expect Prometeus would resort to use, and too bad you don't seem to have any confidence in your ability to counter this business decision of theirs via other more dignified methods.
You silly rabbit in what ways your dedis even matter here?
They now offer dedis cheaper than your VPSes, is that not something to think about?
@Maounique It wont work because the people know that the Servers are cheap and with good support so why should we change?
As I already pointed out, they are not now and never were a competitor for us. Our dedis are going for 10 times more money and we are out of stock, therefore, they are not in the same market.
I am only telling what happened to me and ppl I know, from what i saw here in the past, those were not isolated cases, maybe things changed now, however I am willing to bed in a couple of months the mood will be changed over here.
I dont see why that is relevant ? We have double the ram (and no kernel overhead) and 5 times more CPU at double the price. Sure, their disk is much larger, but no redundancy, so, I would say our VPSes are not more expensive and better overall.
I wish all the minecraft ppl will go to buy their "cheaper" dedis. They wont. Guess why ? Sure, the i5 with 16 GB ram is in a different category, true, we limit VPSes at 8 GB of ram for a reason, over that, a dedi will be better, but for atoms at 3 Eur a piece for 2 GB ram, we blow them up, run a benchmark on our smaller OVerZold, the 4 GB one and on your best KS and you will see what i mean.
Lets say, for the sake of the argument, that their dedis really ARE cheaper than our VPSes. Then the level of service is way different still and would warrant whatever price difference would have been with our prices higher.
Well, i also don't see this offer as such a tragic for most of the other providers. At least all the Minecraft kids will now have a new home, which will be good for the rest of the people
lol so much rage right there. just like @rm_ said trash talking competitors is really bad. Improve your services or just stop whining
Isn't there any way to use something like CPU-Z to determine the motherboard type?
Maybe they are using custom motherboards and PSUs to combine multiple servers on a SoC
@gsrdgrdghd dmidecode
I bet ti's an Intel DN2800MT motherboard, although i haven't got a kimsufi so far.
I see only rm_ whinning, or, rather, winning. Since we had no cancellation today yet, I am pretty sure he didnt cancel his service here for the cheaper and better dedi than our VPSes.
Until he moves out, all his arguments are moot.
Yup,
Base Board Information
Manufacturer: Intel Corporation
Product Name: DN2800MT
You mean not "yet". Would give it a few days to see what happens. Most are probably still waiting on their OVH box to see what it's like before cancelling. Give it a few days, they see OVH being stable and something might happen.
Which by the way, you forget to add PDU, switch, network/power cables and whatever else to calculating costs. With such low pricing everything counts.
I don't think they would combine multiple motherboards. Probably 1/2 U custom solution to fit 2 in 1U was what I saw in earlier videos. Something along those lines.
It aint gonna happen, but at least torrenters will. A KS with 2 GB will not run any decent minecraft server as our OVerZold would. I deeply regret that, I hope the DDoS protection, at least, will make some move.
Not having anything against them, we allow all types of game servers (only clients are forbidden), however, they do take some 3/4 of the CPU and limit our ability to sell ram due to that, even tho they use most ram, we still have some 20-30% left unsold due to cpu not being enough.
However it runs web servers and a lot of people running websites / resellers off the VPS might move sadly.
Well, I doubt he is at the end of the subscription, he is an old OVH customer, therefore he would have got his KS already and he knows them very well, why would he hold back and see ? He can canel now specifying at the end of the billing period and will have plenty of time to move his data, there is no need to delay, we have lots of people asking for stock everyday, cant even upgrade lately, hopefully this will ease the pressure a bit.
I am not sure why would anyone run reseller off an OVerZold server, as they say, since it is cheap, it cant be trusted with production stuff, as for running one site, gee, must be a huge one to need 4 gb of ram and 4 E5 cores. If it is that big, will never run from a KS with lower io and CPU, as well as ram.
I'm not talking about him in particular.
@rds100, do you still have the dedi offer?
Waiting for something like this, sometimes just makes me bored
@ErawanArifNugroho yep, we have it, but the cheapest one is $25/month, can't beat 3 EUR
@Maounique I would appreciate my personal business with your company not being dragged into the center of the discussion.
What I was asking from you, is to stop badmouthing OVH in every thread with the same carbon-copied arguments, and to have some confidence in your ability to provide a better service.
Not seeing how whether or not I am cancelling my Prometeus VPS is at all relevant to this.
I can't agree with that, the support with OVH has been pretty good for me, I suffered three power suply failures with them, but each time the power suplys were swapped in ~10 minutes. I also received some udp floods and after opening an emergency ticket they filtered the attack. You asked me to leave because of a 400k pps attack. I don't think you offer a superb service, actually you're quiet similar to ovh, your boxes just run and run and there is no support needed.
Please tell me where your support is outperforming.
Since you are saying I am not confident in the quality of the service and think OVH would be a threat, i think it is extremely relevant your own actions that seem to contradict what you are saying.
On the contrary, I am as confident as i can be that our services are better and you would eventually regret your decision to leave. This is why I am taunting you, it is some kind of a bet that our equally priced OVerZold (for the amount of RAM because CPU is way better and disk space is way lower while the io is also way better so cant be really compared spec by spec) is beating up flat any combination of 2G. therefore it is highly irrelevant in the argument, KS is cheaper than our premium VPSes, our Biz line ? Fine, you are comparing our premium services with their low end ones, if we compare low end against low end, you will see that either:
Therefore, considering they will be able to lose a lot of money to maintain this line at this price, I am still not worried, because, even so, i am confident we offer better value for the money, even at the very low bottom, as for their premium services, our VMWare offering is way cheaper and we sell to big corporations, even governmental organizations.
TL;DR: No, I am not one bit worried about this, i was expecting to happen since last year and we stopped investing. Even so, we are not yet at the point where price cuts from the "competition" (I still think OVH is not a direct competitor) are hurting the sales, never had such a low stock since we started offering this line. We are sold out for 2 months on the most popular products, do not have hardware sitting around, extra capacity to fill, heck, rack space is a big problem, so, why would I be worried again ?
Who is attacking and bad mouthing who here ? Did you take Aldryic's place for some reason ?
Thanks, I will try to register as a client. Am I allowed to try it for one month?
If yes, I will make a payment today
@ErawanArifNugroho it is on a month by month basis so you can order, then either continue for the next month or cancel it at the end of month.
And since i'm nice ;-) You can cancel within one week if you don't like it and get a refund. And yes, you are welcome to register as a customer.
Just PM me with the config you would like, because there is some time needed to setup and test everything before we can give it to you.