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Colohouse and Turnkey Internet repeated price increases
webmaster24
Member
I was a client for Turnkey Internet for many years, and was always a stable business relation. Once Colohouse acquired them they cannot stop raising prices... a company of their size is always writing excuses for them while much smaller companies with less funds aren't doing anything even close.
Prices for existing customers were raised after the acquisition, and today they announced a new one:
"Due to the increases we have seen across hardware to power rates in facilities our products will have a 5% increase for any new orders. Monthly flexible contracts will see an increase of 5% on their invoice from October 1, 2023."
PLUS
"we are introducing a clear and transparent annual inflation price increase, to take effect on January 1st of each year"
Unbelievable! Many hardware prices have been going down significantly, SSDs and NVMEs for ex. are half the price from a year ago... and TurnKey was always bragging that it runs on green energy:
"Every square inch of our roof is covered with solar panels, creating a massive clean energy-producing power plant. Our on-site solar power generation is one of the unique green aspects that makes TurnKey Internet stand out from all other data centers."
But now they need constant price hikes because of power rates?! I've worked with dozens and dozens of companies, but lately I'm moving more of my websites to stable platforms where this doesn't seem to be a problem.
It's a disgrace in this industry that once companies are acquired the VAST majority go downhill, rarely better. Decade after decade seeing the same thing.
Comments
I mean, everything is getting more expensive. If the item you're buying in the grocery store hasn't increased in price, it's decreased in size.
No one likes having to pay more for something today than what they were paying yesterday, but that's just how it goes sometimes. There is no shortage of providers to consider if you don't wish to pay that increase, and they gave you until January 1st of 2024 to figure it out.
As I said, I've been buying lots of hardware and it's getting cheaper, not more expensive. I bought many terabytes of quality storage the past months because the price is half of what it used to be. It's not the only thing, that they mention, going lower price but it's an example that many people can easily verify and that I can vouch myself. Memory and GPUs been decreasing as well, but I don't buy as much. In any case, just demystifying their justification for not one but multiple price increases on current contracts. They want funds to buy more companies, I guess, they acquired many and want more... I paid the first increase and didn't say anything, but I can see this will be a routine from now on, not an exception.
Even the price of power went down from what it was last year, but they always boasted to be powered by green energy so has the sun become greedier too?
As for alternatives, there are dozens, and many getting ruined for one reason or another everytime they get acquired... I lost count by now.
January 2024 is the third increase, the second increase is next month: "increase of 5% on their invoice from October 1, 2023"
It could be that the cost of providing cloud services are getting expensive than building the hardware itself.
Inflation is a thing no matter hardware costs.
Salaries alone have increased significantly in a lot of places.
But as others have said, no point in arguing it - don’t agree? Move away.
Today's new email: "Exciting Changes with TurnKey Internet and Colohouse"
TLDR? "TurnKey Internet brand will thus be retired."
Yes, very exciting... multiple (perpetual) price hikes on previous contracts and deleting a brand/company I trusted for many years and replacing it with one that did nothing until now but pushing me away (and succeeding). Win-win for sure (sarcasm).
PS. salaries aren't just increasing with them, nor does that justify multiple increases within 12 months... they clearly say hardware (most going down, not up) and power (TKI always focused about using green energy, the sun must be raising its rates).
PS2. always easy to say just move out, as if people only had something you can move with 1-click. No, I have dozens of dedicated IPs and have better things to do than moving infrastructure everytime a company is bought (which isn't rare). In any case there is not much chance of that not being the outcome, once you raise prices 1x , 2x, 3x, you know it will continue.
Lmao