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DigitalOcean, simple predictable pricing......NOT!
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DigitalOcean, simple predictable pricing......NOT!

edited August 2023 in General

They went and changed their plans and prices on me without any notice as far as I can tell. Not what I would call predictable pricing. They used to have a 25GB NVMe plan for $7 but now NVMe starts at 35GB for $8. They are also quietly trying to phase out their $6 25GB SSD plan. It's still there on the API but I can see that they created identical plans starting at $7 so the writing is on the wall.

Of course I don't care about a $1/month difference if I was just planning to buy/resell a handful of servers. When you multiply that x100's of servers it's a different picture.

Comments

  • If you need 100s of vps's you could afford the $1 price increase

  • Prices can't stay the same forever. You should expect and plan for price increases.

    They definitely should have sent out a notice about it though. Strange that they didn't.

  • @Daniel15 said:
    Prices can't stay the same forever. You should expect and plan for price increases.

    They definitely should have sent out a notice about it though. Strange that they didn't.

    It's not just the price change, albeit with more storage. It's the fact they got rid of plans I was already using.

  • edited August 2023

    @johndeo983 said:
    If you need 100s of vps's you could afford the $1 price increase

    Walk me through your business logic where bottom line costs don't matter and don't add up. An extra unexpected $500/month increase in my expenses is not a trivial increase to me. Also, what do you think will happen when I pass those costs on?

  • I don't see the problem here.

  • jarjar Patron Provider, Top Host, Veteran

    @LosPollosHermanos said:

    @johndeo983 said:
    If you need 100s of vps's you could afford the $1 price increase

    Cool story. And then when I need to pass that cost on and less people sign up?

    You reevaluate the value of what you're providing as well as the overhead you're using to provide it. Not all businesses survive.

    Thanked by 2Lee fart
  • niknik Member, Host Rep
    edited August 2023

    The pricing page still shows:
    1 GiB 1 vCPU 1,000 GiB 25 GiB $0.01042 $7.00

    Or what's the issue exactly? I can't find 35GB $8 anywhere.

    Edit: Only for Intel VMs. Was skipping them, as no sane person would buy them :smiley:

    Thanked by 1PineappleM
  • Don_KeedicDon_Keedic Member
    edited August 2023

    I don't like DigitalOcean, haven't had a good experience with them at all but I'm still trying to figure out what the issue is? Things cost more and they have to pass that onto their clients to stay solvent. If you're managing 100+ servers and don't have a plan B or plan C when prices inevitably go up, you've got more pressing issues at hand.

    They may have had to expedite their rollout plans as their stock price plunged 25% in the past week.

    Plan for the worst, hope for the best. Always.

    Thanked by 1PineappleM
  • edited August 2023

    @Don_Keedic said:
    I don't like DigitalOcean, haven't had a good experience with them at all but I'm still trying to figure out what the issue is? Things cost more and they have to pass that onto their clients to stay solvent. If you're managing 100+ servers and don't have a plan B or plan C when prices inevitably go up, you've got more pressing issues at hand.

    They may have had to expedite their rollout plans as their stock price plunged 25% in the past week.

    The problem is that the plans that I was previously using and advertising to my customers no longer exist. There was no announcement or heads up given about it ahead of time as far as I can tell.

    It looks like they are trying to phase out lower end plans entirely and this is one way that they do this. Another way is to limit the amount of orders they accept and what datacenters they are available in.

  • Don_KeedicDon_Keedic Member
    edited August 2023

    @LosPollosHermanos said:

    @Don_Keedic said:
    I don't like DigitalOcean, haven't had a good experience with them at all but I'm still trying to figure out what the issue is? Things cost more and they have to pass that onto their clients to stay solvent. If you're managing 100+ servers and don't have a plan B or plan C when prices inevitably go up, you've got more pressing issues at hand.

    They may have had to expedite their rollout plans as their stock price plunged 25% in the past week.

    The problem is that the plans that I was previously using and advertising no longer exist and there was no announcement or heads up given about it ahead of time as far as I can tell. All I can find is some mention of new plans added in their release notes dated Aug 2. That actually isn't the full story. This is effectively a price increase when you connect the dots of the changes I am seeing on their API. The next change looks like the elimination of the 25GB SSD plan entirely.

    https://www.digitalocean.com/blog/announcing-new-basic-premium-plans - 08/03/23

    "To ensure a simple UI experience, we are limiting the use of six existing Basic Premium Droplet >plans to via API and CLI (doctl) only.
    Starting today, creation of new Droplets from these plans will not be available via the cloud console. >However, existing Droplets will continue to be accessible in the cloud console.
    "

    NEW: Additional plans for Basic Premium Droplets with Intel® Xeon® processors
    Choose from these new plans or any of the existing plans we offer for Basic Premium Droplets with Intel® Xeon® processors.
    Processor Type Memory vCPUs Transfer NVMe SSD Monthly Price
    Intel® Xeon® 1 GiB 1 1,000 GiB 35 GiB $8
    Intel® Xeon® 2 GiB 1 2,000 GiB 70 GiB $16
    Intel® Xeon® 2 GiB 2 3,000 GiB 90 GiB $24
    Intel® Xeon® 4 GiB 2 4,000 GiB 120 GiB $32
    Intel® Xeon® 8 GiB 2 5,000 GiB 160 GiB $48
    Intel® Xeon® 8 GiB 4 6,000 GiB 240 GiB $64
    Intel® Xeon® 16 GiB 4 8,000 GiB 320 GiB $96
    Intel® Xeon® 16 GiB 8 9,000 GiB 480 GiB $128
    Intel® Xeon® 32 GiB 8 10,000 GiB 640 GiB $192

    Did you see this by chance?

    Thanked by 1claudio
  • edited August 2023

    @nik said:
    The pricing page still shows:
    1 GiB 1 vCPU 1,000 GiB 25 GiB $0.01042 $7.00

    Or what's the issue exactly? I can't find 35GB $8 anywhere.

    Edit: Only for Intel VMs. Was skipping them, as no sane person would buy them :smiley:

    You're right, they still show the 25GB NVMe plan for AMD on their control panel. I suspect they will try get rid of the AMD one next.

  • Looking back at the dates now, their stock fell 25% the day they announced the pricing changes. So it seems you're preaching to the choir.

  • niknik Member, Host Rep

    Their idea is probably to upsell customers from the $7 to the $16 plan since only the smaller one got more expensive.

  • @nik said:
    Their idea is probably to upsell customers from the $7 to the $16 plan since only the smaller one got more expensive.

    Seems like they've switched gears and are targeting tech startups vs regular joes. It certainly COULD be more lucrative (contracts, less people to support, etc..) but if it turns out the regular joes are the ones who are currently buttering their bread, they're going to be in a world of hurt by alienating them.

  • edited August 2023

    @Don_Keedic said:

    @LosPollosHermanos said:

    @Don_Keedic said:
    I don't like DigitalOcean, haven't had a good experience with them at all but I'm still trying to figure out what the issue is? Things cost more and they have to pass that onto their clients to stay solvent. If you're managing 100+ servers and don't have a plan B or plan C when prices inevitably go up, you've got more pressing issues at hand.

    They may have had to expedite their rollout plans as their stock price plunged 25% in the past week.

    The problem is that the plans that I was previously using and advertising no longer exist and there was no announcement or heads up given about it ahead of time as far as I can tell. All I can find is some mention of new plans added in their release notes dated Aug 2. That actually isn't the full story. This is effectively a price increase when you connect the dots of the changes I am seeing on their API. The next change looks like the elimination of the 25GB SSD plan entirely.

    https://www.digitalocean.com/blog/announcing-new-basic-premium-plans - 08/03/23

    "To ensure a simple UI experience, we are limiting the use of six existing Basic Premium Droplet >plans to via API and CLI (doctl) only.
    Starting today, creation of new Droplets from these plans will not be available via the cloud console. >However, existing Droplets will continue to be accessible in the cloud console.
    "

    NEW: Additional plans for Basic Premium Droplets with Intel® Xeon® processors
    Choose from these new plans or any of the existing plans we offer for Basic Premium Droplets with Intel® Xeon® processors.
    Processor Type Memory vCPUs Transfer NVMe SSD Monthly Price
    Intel® Xeon® 1 GiB 1 1,000 GiB 35 GiB $8
    Intel® Xeon® 2 GiB 1 2,000 GiB 70 GiB $16
    Intel® Xeon® 2 GiB 2 3,000 GiB 90 GiB $24
    Intel® Xeon® 4 GiB 2 4,000 GiB 120 GiB $32
    Intel® Xeon® 8 GiB 2 5,000 GiB 160 GiB $48
    Intel® Xeon® 8 GiB 4 6,000 GiB 240 GiB $64
    Intel® Xeon® 16 GiB 4 8,000 GiB 320 GiB $96
    Intel® Xeon® 16 GiB 8 9,000 GiB 480 GiB $128
    Intel® Xeon® 32 GiB 8 10,000 GiB 640 GiB $192

    Did you see this by chance?

    Making it more difficult to order lower priced plans to "ensure a simple UI experience" is certainly one way to try spin it. :*

  • edited August 2023

    @nik said:
    Their idea is probably to upsell customers from the $7 to the $16 plan since only the smaller one got more expensive.

    Doesn't everyone and their dog want to try upsell to more profitable plans? I know I certainly do.

  • @LosPollosHermanos said:

    @Don_Keedic said:

    @nik said:
    Their idea is probably to upsell customers from the $7 to the $16 plan since only the smaller one got more expensive.

    Seems like they've switched gears and are targeting tech startups vs regular joes. It certainly COULD be more lucrative (contracts, less people to support, etc..) but if it turns out the regular joes are the ones who are currently buttering their bread, they're going to be in a world of hurt by alienating them.

    Well yea, I mean doesn't everyone want to try upsell to more profitable plans.

    It's great if you can but you also run the risk of losing the cash flow that's keeping your current infrastructure running and the people running it employed. One without the other doesn't make any sense, so if you can't fulfull what you're currently obligated to (or there's a mass exodus of clients to greener pastures) - they're going to be speeding in neutral.

    Have you checked out Vultr?? They have the same plans at the price point you were looking for. They've been absolutely rock solid for my clients and myself.

  • edited August 2023

    @Don_Keedic said:

    @LosPollosHermanos said:

    @Don_Keedic said:

    @nik said:
    Their idea is probably to upsell customers from the $7 to the $16 plan since only the smaller one got more expensive.

    Seems like they've switched gears and are targeting tech startups vs regular joes. It certainly COULD be more lucrative (contracts, less people to support, etc..) but if it turns out the regular joes are the ones who are currently buttering their bread, they're going to be in a world of hurt by alienating them.

    Well yea, I mean doesn't everyone want to try upsell to more profitable plans.

    It's great if you can but you also run the risk of losing the cash flow that's keeping your current infrastructure running and the people running it employed. One without the other doesn't make any sense, so if you can't fulfull what you're currently obligated to (or there's a mass exodus of clients to greener pastures) - they're going to be speeding in neutral.

    Have you checked out Vultr?? They have the same plans at the price point you were looking for. They've been absolutely rock solid for my clients and myself.

    I use both Vultr and DigitalOcean. That way I have alternatives when one of them pulls a stunt like this. I think DO API is a bit better and since I do everything over API they are my primary. I also prefer DO Datacenters. I think most are more custom setups with more redundancy. Vultr appears to just lease rack space with the possible exception of NJ. Probably with whoever gives them the best deal.

  • jarjar Patron Provider, Top Host, Veteran
    edited August 2023

    @LosPollosHermanos said:
    Vultr appears to just lease rack space with the possible exception of NJ. Probably with whoever gives them the best deal.

    Most companies don't own their own data centers at all, and simply lease space in larger facilities. Choopa might actually control their whole space in NJ though, not sure.

    You really have to do a lot of volume or get away with some high prices to make it financially viable to manage facility certifications, power, building maintenance, all that jazz. Of course, basement data center is always an option too I guess 🤣

  • Damn it why cant I get a candy bar for a nickel anymore?

  • @LosPollosHermanos said:

    @johndeo983 said:
    If you need 100s of vps's you could afford the $1 price increase

    Walk me through your business logic where bottom line costs don't matter and don't add up. An extra unexpected $500/month increase in my expenses is not a trivial increase to me. Also, what do you think will happen when I pass those costs on?

    Sounds like your business model is the problem? Buying and reselling a service that you have no control over is just a poor business strategy. It is lazy and you're paying the price now.

  • jarjar Patron Provider, Top Host, Veteran

    @ehhthing said: Sounds like your business model is the problem? Buying and reselling a service that you have no control over is just a poor business strategy. It is lazy and you're paying the price now.

    That's not entirely fair. Every provider falls under that same logic if you view it from a relative perspective. How many data centers own the power companies? They're reselling power they have no control over.

  • edited August 2023

    @ehhthing said:

    @LosPollosHermanos said:

    @johndeo983 said:
    If you need 100s of vps's you could afford the $1 price increase

    Walk me through your business logic where bottom line costs don't matter and don't add up. An extra unexpected $500/month increase in my expenses is not a trivial increase to me. Also, what do you think will happen when I pass those costs on?

    Sounds like your business model is the problem? Buying and reselling a service that you have no control over is just a poor business strategy. It is lazy and you're paying the price now.

    You don't even know what I am doing. :D

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