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Akamai Jacks Up Linode Pricing 20%, Doubles IP Fees
raindog308
Administrator, Veteran
in General
"As we expand our cloud portfolio and work to improve the resiliency and reach of our network, we face the reality of also evolving some of the economic fundamentals that make this expansion possible, while staying true to our core mission of making cloud computing affordable and accessible."
- Pricies for all VMs except their smallest Nanodes will increase by 20%
- IPv4s double in price
Comments
Anyone surprised?
Yes actually.
I thought they were going to jack things to match AWS or in that range.
Maybe they're taking the cPanel approach and it'll be compounding 20% hikes for a few years.
Francisco
I think they'd have a full-on revolt if they took it all the way to AWS levels so quickly. I mean, didn't they just complete the rebranding? Maybe give it some more time, Akamai!
But yeah, you're probably right that they have their eyes set on regular price hikes though.
So now you're not getting any crazy ideas of jacking up your prices, right, @Francisco?
It was fast
"How to destroy brand in one step!"
Nope, we've simply absorbed whats needed and then I haggle even harder on contracts.
Francisco
Good to hear. And haggling is a lost art, glad to know you are a practitioner.
I guess Akamai is not aware of haggling... they went for the price increase before the new paint on Linode's new website was dry.
Oh i'm sure all of my upstreams hate me, but I pay my bills and give little grief past that.
Francisco
I'll happily give clients that pay their bills on time a better deal.
Nothing much better in business than a client that pays bills on time.
I had a client years ago (before he retired), that always paid me within 24 hours of getting my invoice. And my invoices had 15-30 days due date, depending on the service/project. Some clients paid on day 15, some on 30. Some on day 45, which was annoying. But this client paid within 24 hours or faster. He was so prompt that I'd always be thrilled to work with him on new projects, and eventually, we became good friends, and we're still good friends to this day, even after he retired.
Pay your invoices to small businesses on time (or early!), you might just get a friendship out of it.
I seriously doubt they hate you. They probably appreciate you.
At least Nanode isn't affected.
Woof, that didn't take long at all.
Year of the price increase (2022) has turned into "years" of the price increase as we begin 2023.
I'm not suprised by announced price increases. Nearly every cloud compute provider has been forced to do it at this point. And the email is not wrong, Linode was priced siginificanly below most of their peers.
I would have rathered additional return was sourced through the pricing on innovative new features and the likes, that would have been more sustainable but also more work.
What I'm surprised about is it came before any new features or integrations born of the Akamai partnership launched. Theres little to point at at this time other than promises that big things are coming. The paints barely dry on the new branding (last week)....
Combining that with the realities they have (had?) a large hobbyist userbase that won't really apreciate many of the features launched and I can see a reasonable amount of customer drop from this announcement. Perhaps thats why this is an increase, not innovation based. I'm sure the beancounters did the numbers.
Perhaps customer loss is where the promised new capacity is coming from
Just FYI I've been sort of expecting some good things to come out of this partnership too. I havent been doom and gloom on this acquisition because I've seen some of the potential (I think).
For example: managed kubernetes in Melbourne as a disaster recovery site of Sydney? All on the same platform, billing and access control?
I know many companies interested in that. Ones that would pay a small premium for the secondary site over the cost of their primary. I'm sure their are many regions with similar dynamics.
The Core + Distributed + Edge model Akamai came up with could create a real powerhouse there if well executed.
Not super interesting for every customer, but for the types of customers who can really help the bottom line it is. And if that increases returns while everyone else benifits from consistent pricing... thats nothing but good to my eyes. Ofc thats not whats happening here.
Abrupt price increases of 20% though have a derailing potential. Probably at-least to the tune of 10% (but only Akamai will know the real customer effect).
I'll say one thing. It might be cheaper to spin up your entirely own Kubernetes cluster on Hetzner if you are EU based. Including management overheads its always difficult to estimate. In the US and APAC/other Linode still remains cost effective from what I can see.
It will be interesting to see what Vultr do. Their Kubernetes stack is far less developed, but with a bit of work they could nab a client base.