New on LowEndTalk? Please Register and read our Community Rules.
All new Registrations are manually reviewed and approved, so a short delay after registration may occur before your account becomes active.
All new Registrations are manually reviewed and approved, so a short delay after registration may occur before your account becomes active.
How much cheap is reasonable for VPS?
In this competitive market, VPS is offered at very cheap price, and sometimes far less than a reasonable price, as the provider can buy a server and offer child VPS.
Some try to make profit in this market by overselling cheap VPS.
I wonder how much is the bellow threshold for a VPS to be realistic?
Comments
Well, to be honest, Id rather sell my grandma than offer cheap vps services. It is not serious business.
Good point, but many provides here in LEB, do the opposite
That is how the market works! That is how it is meant to work! Price competition weeds out the crap providers how do not have much capital/skill and which would have deadpooled sooner or later anyway.
In general business when selling a product, we know that most there has to be profit margin. In the VPS market it would be interesting to see what this is. I guess a $12/yr 256MB VPS (which is the typical going price on here with Torqhost doing a deal at $10 recently), costs the host ~$5, so they are making around $7.
This is actually nothing, we are just fighing over the scraps in the corrupt crony capitalist system. Look at the millions the bankers get in handouts from the government, their salaries, their bonuses. And we squabble over 7 bloody dollars on here.
Just look at how much money the U.S and U.K regimes are about to waste bombing Syria all the while telling us there is no money for hospitals, schools, pensioners, etc. Each Tomahawk cruise missile is around $750,000 and they are saying they will be firing 100+ a day of these. That's $210,000,000 they will spend in the 72 hours on just missiles, then you have all the other costs of personnel, fuel, hardware etc!!!!
Forget the VPS game, and join in with the war game!
Online.net sells their Dedibox Extreme SP for €1.90 per GB of real dedicated RAM so anything over that is unreasonable. :P
Define reasonable price for the end user. I'd consider $15 monthly for a 512MB VPS from a reliable provider who knows what they're doing to be a reasonable price, but I'd also consider $4 for a 4GB RAM VPS from a clueless provider to be expensive and unreasonable. I also consider some of the 2GB/$7 deals offered on LE* to be priced unreasonably high when the person offering them doesn't even know basic Linux commands or is offering services on an aging desktop in a crappy data center on an even crappier network.
The profit margin depends entirely on the host's costs. Some hosts may be able to turn a profit on a $12/yr 256MB VPS while other hosts would need to charge $20+ to turn a profit on a VPS with the same specs.
@asterisk14
War == money, heck I also get my money because of war.
Can I join you, I want some war money too, been watching Lord of War.
With large companies trying to buy smaller... it might be a good strategy to sell vps at a heavy discount with just breaking even or a little loss... with the hope of getting bought
Yes, that may work for DO or OVH, but it does not look they want to be bought,maybe this is just a side effect of too much money at low interest floating around.
I'm thinking about OVZ offering 512gb or 1024gb for 15 bucks a year.
when a host suddenly drop price significantly... makes me think want to ramp up client...
Some will try it and miserably fail such as those who lease/rent hardware
If you own your own hardware, this could be different.
If that is for yearly deals too, it may mean they will also close soon.
That's OK as long as you have paid by credit card :-) ⇓
Is not hard to offer cheap, the harder part starts when fraud, abuse, police and more hit you
Really $1/mo. VPS is more marketing than real service.