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EU vs US VPS pricing range
I wonder why there's no VPS located in US with the same spec but have price range like EU VPS. For example 4c 16g EPYC VPS in EU, which priced at 5-10EUR. Why there's no 4c 16g EPYC/equivalent VPS in US at 5-11USD. Is that because different electricity cost or other reason?
Comments
That's a good question, electricity is cheaper in the US than here in the EU. Also, most of the time (depends on the area), colocation is also cheaper in the US.
I am following this post to see if anyone responds. I am curious.
Greed, people who pay and various other reasons regulates price. Imagine vps price tag for Uganda people. 10€ is like monthly budget for entire family of 8 people.
Partly because no one is truly in competition with the likes of Contabo and other German providers who follow the same business model of promising 300 cores for $3/mo. It's the same bullcrap as "unlimited shared hosting" which markets well, but the service itself does not work great when you actually start using it for what was advertised.
Some of us are trying to provide a more serious service, while still keeping the price as low as possible.
And yes, you're right, the power price is indeed lower in the US (by a factor of half in some cases).
I was about to eat popcorn when I saw this thread.
Agree with this, most german hosting services oversell like hell
But I have good experience with netcup and avoro for example
Otherwise, I don’t agree with OP
I find that there are much better offers in the US than in Europe, by far.
We used to offer 4C/16G at $8/m in the US, but it's not really a great margin. The electricity cost is actually far less in most US datacenters, and there's not really a difference in network costs. In general, it's cheaper to actually host in the US than it is to host in EU.
Personally, I don't think $0.50/GB it's sustainable in the long term unless you're doing it at tremendous scale or heavily overcomitting resources. While we were able to turn a small profit, it really wasn't enough to sustain our growth at all.
My guess as to why it's cheaper is that there are just more providers in the EU which are willing to take on the smaller margin.
We offer 6C/16G EPYC Milan VPS in 3 US locations for just $12/month (though out of stock) - https://advinservers.com/cloud
We have plans to open a location in Ashburn.
I'm very excited to see how things develop there in the US!
Personally, I've always wanted to move to the US anyway
Isn't cost of living and wages higher in the US (at least around most places with data centers)?
Usually hardware and I believe also bandwidth is cheaper in the US.
But than if your company is publicly traded, you need to grow. Your share holders don't care about great deals, just great profits.
Oh also if most of your competition is doing extremely well with none of these "cheap" deals, why should you do the cheap deals and take on less money?
We don‘t need to work with borrowed capital, which makes shareholder belongings irrelevant.
We also will not be in need of people working dedicated for us in the states. There will be only some occasions in which we have to build our clustered environment and extend it with a bunch of nodes. Those consist of some beefy hosts that can run untouched for 2-4 years most times.
We do not do any kind of marketing and even killed the community that existed around us because of no one wanting to care posting regularly or doing community moderation, but therefore we increase our visibility by posting crazy deals once or twice a year.
Other measures that we take to ensure high efficiency in every day operations and other things are also benefiting us.
Thanks for questioning our ambitious plans, but i can assure you there is no need to worry.
Sorry I wasn't questioning your plans. This was just in general. OP didn't mention any provider specifically. I'm not going to question any company specifically as I don't know anything about the to begin asking those things.
Supply and Demand. Simple economics
There are a couple hosts that can provide something like that in the US.
Only few countries/companies in EU have offers as good as this (if they really...), and EU is small.
M> @concept said:
Example?
Linveo, Crunchbits.
SolidSEOVps toi has some good deals with epyc in US and EU (paid yearly)
I think he Market in Europe and especially Germany has more competition, therefore we have here better prices due to that.
What i observed that especially storage capacity on Us vms is almost not existing or damn expensive. i was looking for a a VM with a few hundred gig storage back then to backup my private mails on a different continent and the US was by far the most expensive on that.
I think the US market is very overpriced at all. The energy there is so much cheaper, and the taxes are lower.
Don't forget that the listed prices in EU are usually always including the VAT. in The US the prices are without, what makes the difference even more extreme.
Yeah, the EU probably has bigger markets for certain cities.
The US market is huge, but so is the country. Demand is more spread out.
In the EU, everyone (90% of buyers) is basically fine with Frankfurt and Amsterdam.
What matter does the city have? i mean: as long as you have a datacenter with good Connection it doesn't matter where your product is hosted. There are a lot of datacenter spread out over Europe that are not in Frankfurt or Amsterdam.
Sure, in those 2 citys its very crowded due to DE-CIX and AMS-IX, but many providers do just have some Racks there (at Interxion or NTT or whoever) for routing equipment and some dark fibres to the actual datacenter they use.
but independent from the location: Germany for example do have a lot of small providers offering webhosting and virtual machines. This causes the competition on the market, which is way more important than the competition in some regions
It matters because that creates bigger potential markets.
More people want a VPS in Amstersam compared to many places in the US.
Hence, more providers.
Hence, more competition.
depends maybe on the customer stack. but especially in the mass hosting the People don't care much about the exact location as long as its in $country and has good connections.
Most people don't care if its in Frankfurt, Berlin, Vienna or Paris as long as the price is cheap, the bandwidth is high and the latency is low. Its just a small amount of people where the location like Frankfurt or Amsterdam (to be close to the Internet exchanges) actually matters. 99.5% don't even think about that. they look for the price and the specs they will receive.
Sure, then that’s great, but you’re missing the point
The US is bigger. Demand is more spread out. Amsterdam and Frankfurt was just an example