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Why KVM VPS too expensive?
Hi guys,
Still don't understand why KVM virtual private servers are so expensive. Because has own kernel? Thats all maybe?
Everywhere the kvm prices are high. I found one germany provider who give 8gb memory 8 core and 300gb disk about 17 euro/month. They are in business about 10 years. So i trust this.
How this is possible? 8gb memory , 8 core for 17 euro?/month?
I am with serverloft.de root server M (OpenVZ 1TB disk , 2 core, 12gb memory
Any suggestion 
Comments
KVM can be oversold to a lesser extent than OpenVZ. That's why.
you get kvms from like 8,50$ per Year but thats it, mostly offers between 4$-20$ are OpenVZ so they can easy oversell everything 2x or 3x times.
Because they can't oversell like you can for OpenVZ.
KVM are expensive because with OpenVZ you can easily oversell upto 6x but it is not easy in KVM & providers usually avoid it because:
1) RAM can be oversold a bit with ballooning but can be easily detected with a single command.
2) Disk Space can be oversold with thin provisioning but all major control panels like SolusVM, Virtualizor, HostGuard, Feathur etc do not support it.
Another major reason is with OpenVZ there is only about 2% overhead whereas in KVM it can be upto 20%
Example: suppose you have 2 nodes each with E3 1270 v3 CPU, 32 GB RAM & 2 X 2 TB SATA 3 disk. You decide to run OpenVZ on 1st node & KVM on 2nd, assigning 1 GB RAM to each VM. Suppose the cost of each node is 100 Euros & Ips are 1 Euro per IP to be paid additionally.On first node you can easily assign upto 128 1 GB RAM VPS with ease & even if you sell 3 Euro per GB of RAM you can still make healthy profit where as with 2nd KVM node you can assign max of 26 or 28 GB RAM.So selling here for 3 Euro per GB RAM wouldn't even recover the costs of node + IPs. So here you will have to sell at 6 Euro per GB of RAM at least only to make 28 Euro profit per node.Remember here I have not included Solusvm, whmcs, website, maxmind & other expenses.
And regarding those German hosts who are selling KVM so cheaply, I have used most of them in the past.They mostly use big servers with 256+ GB RAM & have lots of VMs per node.CPU & disk performance is usually terrible.If you want a quality KVM vps with 8 GB of RAM you will have to pay much more than 17 Euro, atleast double of that I think.
I suppose when you're selling unlimited bandwidth for 4 pounds a year, everything must seem expensive.
On OpenVZ, everything can be oversold. On KVM, only CPU and HDD IOPS can be oversold.
That is not even a correct word.Unlimited means I should be able to use 100 TB even if I want but what if the port is only 100 Mbps? I cannot use more than 32.40 TB in that case even if I am the only user.Correct way is mention port speed & use unmetered instead of unlimited.
His site actually say 1Gbps though that is presumably shared. Still, since I have no way of knowing how many people are on a server, I guess I should assume I'll have 1Gbps 24x7 all to myself.
So, for .25 pounds a month, he'll give you 321 TB of bandwidth. I can think of several Linux repositories that I should mirror there.
You can oversell HDD on KVM too through thin provisioning, just not through solusvm.
That was just an imaginary example but what is wrong with it? I am asking from learning perspective.
Even with virtIO? What if the node has only 12 to 15 VMs?
That is from a kvm vps on a node with 2 X 2 TB SATA 3 Hardware RAID 1
http://s12.postimg.org/w9ezqt9ul/ddtest2.png
@Jack is that bad for RAID 1?
-Well now i understand it very well. Thanks for your reply
-Most of users don't use more then 1 TB / month BW. So this is unlimited, fair usage i think thats the correct.
-Who know? I saw this german host this KVM for 17 euro (25 euro the default price , but -10% coupon , -19% VAT) That KVM node the disk always around 600-800mb/s , so i think not bad. They use solusvm so they can't oversell it... if i understand this correctly
Would you please like to share the name of of that German host?
Don't want to advertise but... if you really need this.. no problem mate
http://colorhost.de/en/server/vserver/kvm/kvm-large/
Sequential speed (dd) has little relation to reality, especially since system caching distorts its results even further.
Random access I/O speed is closer to reality, when hosted VMs perform many concurrent I/O operations.
I follow the Hungarian style. There the data centers don't has any Transfer limit like the other country. Example.. you got 100mbit... use all the day. No transfer limit , and this is good point.Course if you has 1Gbit/s network in hungary.. use it well as you want. No limit... thats great. Anyway the 100mbit/s network cost: 45 EUR , expensive? Maybe?
They are alright.
Ah, so it's "unlimited as long as we can still make money". Either you provide 321TB/month or you don't...
http://www.translantern.com/why.html#unlimited
Our lowest possible plan in IWStack is about 1.5 Eur a month. 384 MB ram, 1 GB disk (10 GB is 2+), you get free rage4 and 2x10 GB ftp backup space included, really unlimited 100 mbps incoming and 1 TB outgoing.
When the IPs are about 1 Eur, that is almost free. I do not know how you can think that is expensive.
.....
Because the startup KVM providers can't afford to offer you more for less and the established ones choose to rip you off.
I think you mean run a sustainable business, you go find yourself some cheap 3-4TB enterprise HDDs and large SSD caching arrays to run KVM nodes.
When are you going to launch high spec KVMs? I'd love to see you do 300-500GB KVMs for the same as OVZ.
But what would you know!
Ha, I would rather make a profit than an shady upstream company bail me out when it all goes wrong again!
Decent KVM nodes cost anywhere between $6000-$8000 to buy or between $500 - $1000 to rent.
You can't just load up a bunch of four disk E3s and oversell like crazy.
Unless of course your happy to amortise hardware over five years.
OpenVZ is very transparent on resource allocation, while you need a fair bit of knowledge on how to oversell KVM as you would with OpenVZ (yes, it's possible)
The desperate hosts with the bottom prices often have next to no in-depth knowledge and just want to make a quick buck. Those who know how to oversell KVM the right way keep the overselling to a minimum or price it sustainably because it's usually what feeds them.
There is one more thing to consider - the support cost for providing KVM is higher that for providing OpenVZ.
Here are some examples:
All in all for the providers it's much easier to fix problems for the customer when it's an OpenVZ VPS. Yes, even for an unmanaged VPS the provider sometimes needs to fix things for the customer. And the customer has more ways to shoot themselves in the foot on KVM.
There can be more examples, but i am sure you can come up with your own. In short KVM is for the more experienced users, and if you get not so experience customers using KVM, the support cost is higher.
why expensive? coz industry ethics cost money
If every provider is the same, maybe it's not that KVM VPSs are too expensive rather your expectations are too high. Quality comes at a price.