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Any interest in cheap Dual L5520's? - Page 2
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Any interest in cheap Dual L5520's?

2

Comments

  • JupiterJupiter Member
    edited January 2014

    concerto49 said: Interesting enough we've had more issues with HP, but hey who knows. They all sell a lot of servers and each has its problems

    My experience with Dell C1100 is that they are reliable but the ICH10R controller is their weakest point.

  • Jupiter said: My experience with Dell C1100 is that they are reliable but the ICH10R controller is their weak est point.

    Yeah those are very reliable (relatively speaking). The controller is just legacy stuff. No doubt about it. We usually install LSI or Adaptec RAID cards as required to make up.

  • @Jupiter said:
    The problem is IO performance with those L5520. If you can add second SSD drive and your network rocks i would be willing to buy a couple

    @MarkTurner said:
    Jupiter - The BL460c G6 has an E200i RAID controller on-board, its not too shoddy.

    I almost bought a dual L5520 from versaweb the other week, but was concerned about IO as well. When I asked them about it, this is what they said:

    Please keep in mind that all of our clearance servers are equipped by default with only SATA2 on-board controllers, so you may not see the full potential out of some SSD's unless you opt for a hardware RAID controller as well. This will not only affect our, but nearly all similar servers offered by other providers as well.

  • JupiterJupiter Member
    edited January 2014

    concerto49 said: Yeah those are very reliable (relatively speaking). The controller is just legacy stuff. No doubt about it. We usually install LSI or Adaptec RAID cards as required to make up.

    or some HP DL180 G6 2xL5639 with P410 controller.

  • JupiterJupiter Member
    edited January 2014

    HostNun said: I almost bought a dual L5520 from versaweb the other week, but was concerned about IO as well. When I asked them about it, this is what they said:

    Some people managed miracles with custom RAID configurations using Dell C1100. Check spiceworks for postings.

  • @Jupiter said:
    Some people managed miracles with custom RAID configurations using Dell C1100. Check spiceworks for postings.

    We added a RAID card, taped SSDs on and all sorts of things :)

  • jbilohjbiloh Administrator, Veteran

    Problem with dual L5520 systems is the power consumption. Going to be tough to do it at $50~.

  • concerto49 said: We added a RAID card, taped SSDs on and all sorts of things :)

    behind the power supply you taped SSDs :)

  • MarkTurner said: The BL460c G6 has an E200i RAID controller on-board, its not too shoddy.

    I think you are referring to G5 not G6. If i recall G6 are with DDR3 and P410i

  • jbiloh said: Problem with dual L5520 systems is the power consumption. Going to be tough to do it at $50~.

    2A with miners :)

  • Provide it real cheap and ill purchase some of them.
    Be sure you get cheap subnets too!

  • netomxnetomx Moderator, Veteran

    Am I looking for a 180 DLLs yearly? XD

  • I do agree it has to come down to price. I am not sure if the ~50$ is month-to-month or if its monthly paid quterly or something. if its month to month then it makes sense if its paid quterly i dont think so.

  • luissousaluissousa Member
    edited January 2014

    @MarkTurner, I think 140$ quarterly would be good.
    Although, I think Delimiter's additional IPs are really expensive. We see VPS companies like GreenValueHost offering them for 0,25$ each.

  • MarkTurnerMarkTurner Member
    edited January 2014

    @luissousa - IP prices won't change in a downward direction. As IPv4 runs out, I would expect all datacentres to raise their prices. We're already seeing this with both OVH and Hetzner. We are limiting the number of IPs per server class and the knock-on effect that affects the subsidiaries too. I have seen us make one acquisition this year purely for that company's IP space, they had no interest in the rest of the business.

    I am not sure that L5520's will be Delimiter's choice of next product, when I spoke to Steve today he was trying to find a way to deliver an ultra low cost E3-1230. We'll see on Friday, we have both units in stock so they just need to choose a direction.

  • @MarkTurner said:
    luissousa - IP prices won't change in a downward direction. As IPv4 runs out, I would expect all datacentres to raise their prices. We're already seeing this with both OVH and Hetzner. We are limiting the number of IPs per server class and the knock-on effect that affects the subsidiaries too. I have seen us make one acquisition this year purely for that company's IP space, they had no interest in the rest of the business.

    I am not sure that L5520's will be Delimiter's choice of next product, when I spoke to Steve today he was trying to find a way to deliver an ultra low cost E3-1230. We'll see on Friday, we have both units in stock so they just need to choose a direction.

    To power that L5520 it's going to cost you at least $20-22/month in 55 Marietta for power alone if you are buying your power via westplan. That E3-v3 will cost you sub-$10.

    I'm sure you guys could sell a ton of them, the question is will you ever make any money. The answer, as I see it, is a pretty strong, no. The value on L5520's is already in the toilet and declining fast for exactly this reason, everyone is in the race to the bottom and has destroyed their marketable retail. I'd say a good 90% of them currently in service are leased to CPU-mining crypto coins. As soon as the bubble pops on that the market will once again be flooded with them even further eroding the prices.

  • RyanD said: To power that L5520 it's going to cost you at least $20-22/month in 55 Marietta for power alone if you are buying your power via westplan. That E3-v3 will cost you sub-$10.

    Wow that's expensive. Our power cost for 1 of them is <$10/month so it works for us.

  • @RyanD - The E3's do make more sense from a power consumption perspective. But we have a pile of L5520's in stock and effectively paid for. So over a 12 month contract, the cost of acquiring/operating E3 units vs the cost of operating the L5520s (assuming minimal cost per unit).

  • Even when the miners are done with these things, I have found them to be popular with the Minecraft community as well. Reason being is that these are offered so inexpensively with high amounts of RAM.

    If anyone else here knows anything about the Minecraft hosting market, the buyers almost always will go for low price, high RAM and don't care about anything else.

    Thanked by 1Mark_R
  • @MarkTurner said:
    RyanD - The E3's do make more sense from a power consumption perspective. But we have a pile of L5520's in stock and effectively paid for. So over a 12 month contract, the cost of acquiring/operating E3 units vs the cost of operating the L5520s (assuming minimal cost per unit).

    I'm using "you" here figuratively, not specifically you guys at delimiter as this is an industry wide problem.

    Assuming you don't sell the E3's dirt cheap, over that same 12 month period there is considerably more margin in the E3 as well. Then if you extend that E3's useful lifecycle out over 36 months there is even greater return.

    You aren't going to extend the lifecycle of the L5520' beyond 12 month, look at it now you are already at the point of selling the box with a retail of $50 with a power cost approaching 50%. This race to the bottom really is at the bottom.

  • @fizzyjoe908 said:
    Even when the miners are done with these things, I have found them to be popular with the Minecraft community as well. Reason being is that these are offered so inexpensively with high amounts of RAM.

    If anyone else here knows anything about the Minecraft hosting market, the buyers almost always will go for low price, high RAM and don't care about anything else.

    We have a few hundred of them in service with minecraft hosts. The issue again is that the price points they are being offered at. In the race for short term revenue and volume transactions the price has been pushed so low there is no recovering from it. You can't simply flip it into another low-cost vertical and expect to be able to sell it for double the price :)

  • @RyanD - it doesn't really affect us in that way. By the time Delimiter gets the equipment it means that other Yomura subsidiaries have already made their profit on these units, so anything between their decommissioning on one brand and the end of the 3 year lease is bunces. If we extend the lease beyond that it will be at substantial discount over the first 3 years or if we just buy the servers we'll get them for pennies.

    So the products we push to Delimiter as their 'clearance' stock is as good as free, its just the operating cost of power, cooling, bandwidth, etc that we need to cover.

    Whereas if we supply Delimiter with E3's then we're going to charge them for the cost of the hardware each month which will drive the price upwards. Delimiter has done fantastically at clearing those X5150s, they ended up with about 90% of the units cleared in 6 weeks. Those units cover their costs and give enough profit to be interesting; and as we're seeing now many of those customers are transitioning to larger blades like the L5420, L5520 and L5639s.

    Personally I dont think Delimiter can do much better than a $99/month E3 which is actually not that exciting because these units are costing nearly $450; whereas L5520 we'll probably end up buying them out for $50 unit or less because they are already on site and in our experience these lease houses just want to get shot of them, they have so much of this kit coming out of corporates they'd rather avoid more.

  • netomxnetomx Moderator, Veteran

    I'm looking for someting less than $15/m if payed yearly, tons of ram :)

  • MarkTurner said: [Disclosure: I work for Delimiter's parent company but my comments are my own]

    where's the real representative from delimiter?

  • Don't worry, the miners will buy them

  • JupiterJupiter Member
    edited January 2014

    Use the same business model as Dacentec and RTO the servers. Let me analyze the benefits:

    1) Customer pays for the remaining lease value
    2) Customer becomes a captive colocation customer
    3) Customer has incentive to remain for 1 year RTO
    4) Customer demand for cheap crypto currency mining is fulfilled

    Its all about being financially innovative and use your competitive edge to your advantage. Just put the numbers down, build scenarios, assign probabilities based on consensus building and come up with the ROI.

    You might even play safe and do a proof of concept on a limited basis to test the market.

    Check also all the competitors listings. L5520 at 50$ are all out of stock ...

  • @Jupiter - I think you are right. My gut feeling is that $50/month for L5520 is a good price that would generate sufficient provide to be interesting and cheap enough to get the mass appeal.

  • To follow up on this, Delimiter chose both L5520 and E3-1230v2 for their next offers. Hopefully we'll see the final pricing on Monday but if they can achieve the price points they are targeting they'll be quite interesting

  • @MarkTurner curious to see the 1230's price :-).

  • I would be interested in these boxes

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