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OnApp bought SolusVM - Page 3
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OnApp bought SolusVM

135

Comments

  • SpeedyKVMSpeedyKVM Banned, Member
    edited September 2014

    @OnApp_Terry said:
    There are no plans for pricing changes. We've put together a list of FAQs that you can see here - http://onapp.com/solusvm/

    LOL lets see how you feel after 12 months of supporting basement hosts (read: ALL CAPS SUPPORT TICKETS BECAUSE THEY'RE TRYING TO INSTALL SOLUSVM ON WINDOWS 3.1).

    Edit: no offense to hosts here, a lot of decent hosts use SolusVM, but being a cheaper product it has a massive kiddie host market also.

    Thanked by 1MannDude
  • @Incero said:
    (read: ALL CAPS SUPPORT TICKETS BECAUSE THEY'RE TRYING TO INSTALL SOLUSVM ON WINDOWS 3.1).

    Maybe a premium on each CAP used on a support ticket ?

  • Nick_ANick_A Member, Top Host, Host Rep

    @SkylarM said:
    Great, now that OnAPP owns it, does that mean we FINALLY get the backup system we had been promised? ;)

    I asked about that yesterday. Phill told me it was next to be released and told me to keep my eye out for the email that came this morning.

  • OnApp team has great developers like Carlos, I think this can only be good news for SolusVM :)

  • someguysomeguy Member
    edited September 2014

    Price increases. OnApp likes to charge a lot for everything and then charge you even more for every little extra thing. Oh so you want to use an 8 core processor as one of your slaves. No problem, just buy 8 slave licenses. Easy. So more $'s and add incremental pricing on top of that. This is NOT a good thing IMHO. I like Solus the way it is with the current pricing. I don't need more bells and whistles and do not want to be charged per core like I think OnApp does now for their cloud platform.

    I'm not interested in OpApp as a cloud platform either. So any integration there is of no interest to me. I prefer OpenStack and would prefer to keep that platform on a separate control panel anyways.

    OnApp is not an open source company. They are all about locking you into proprietary solutions and charging you a premium for it. If anything this might cause me to switch to something else. Will see how it goes.

    They can go on about how they won't increase prices but I don't believe a word of it. I have seen how this goes too many times. At a minimum expect to pay extra for any new features moving forward.

    Thanked by 2Mark_R Maounique
  • autonomyautonomy Member
    edited September 2014

    Obviously the main point of this deal for OnApp is the federation aspect, adding in an already large market of SolusVM users to their federated cloud options. I am totally behind OnApp in what they're trying to do with allowing easier ways to compete with the megahosts, as their software is very impressive and if they succeed in that aspect it's a new and very smart & lucrative way to arm the masses. That said, I hope they reconsider some of their pricing decisions going forward...

    It also seems slightly redundant as SolusVM has been a slow incumbent for many many years. As a host who's run every CP under the sun and who has used OnApp from the start, I find it to be the best option. But for the majority of my services I'm forced to use lesser CP's (ie. SolusVM) due to pricing constraints.

    With the smallest of tweaks to the single node options (ie. non Cloud) with OnApp, along with suitable adjustments to their pricing model (ie. charging ~$10 per node, instead of some absurd ~$450 minimum for their Clouds) for people using it in a single-mode fashion, they could have completely taken over the market of SolusVM users and it's derivatives years ago..

    Having such a dominant/valuable low end base would have provided them a much easier way to take over the top end also, as well as they are already doing..

    Those changes pretty much boil down to making it a bit more obvious how to run their software with local lvm storage and without backup servers (trivial) as well as having some extra functionality within the UI to accomodate that, such as node to node lvm migrations (also trivial considering far lesser options like hyper-vm and solus-vm have done it long ago and the required code aint that deep).

    But congrats to them, it does sound potentially better for the common good. Hopefully common sense with pricing prevails.

  • the price will increase or become cheaper?

  • @SkylarM said:
    Great, now that OnAPP owns it, does that mean we FINALLY get the backup system we had been promised? ;)

    No problem. Just buy the backup server license. Only $99 per month per core. On sale if you act now before prices go up.

  • ditlevditlev Member, Top Host, Host Rep

    @someguy said:

    Again, we're not here to milk it - that would be stupid and short sighted. I am in it for the long run ... I'm on a mission here. And I am not going to jeopardise it by trying to squeeze a few bucks more out of a perfectly fine, growing and profitable business.

    :)
    D

  • ditlevditlev Member, Top Host, Host Rep

    @autonomy said:

    (...)

    With the smallest of tweaks to the single node options (ie. non Cloud) with OnApp, along with suitable adjustments to their pricing model (ie. charging ~$10 per node, instead of some absurd ~$450 minimum for their Clouds) for people using it in a single-mode fashion, they could have completely taken over the market of SolusVM users and it's derivatives years ago..

    The real cost of running a setup like OnApp is actually the support, and that would not decrease significantly

    At OnApp we've invested heavily into our support team, with 15 mins SLA (less than 5 mins avg reply times for 2 years in a row now). 24/7 US based telephone support etc etc. We can simply not do that at 10/node. We just can't.
    SolusVM's price model is obviously very different than ours - they pretty much sell at 10-20% of OnApp's list pricing, and they've build a support model that works for that business.
    However, it's also a much 'simpler' product with less complications that would require the 'OnApp-level' of support.

    But congrats to them, it does sound potentially better for the common good. Hopefully common sense with pricing prevails.

    Thanks :)

  • rds100 said: @ditlev so the old company will be closed? I see that the invoice info in the client area has already changed:

    nah i think they just moved their RO for dodgy tax schemes.

    Registered address: Montagu Pavilion, 8-10 Queensway, Gibraltar

    care to explain @ditlev

  • ditlevditlev Member, Top Host, Host Rep

    @TarZZ92 said:

    sure - all my companies start out in Gibraltar. I've used the same team there for ages, I like to work with them, and they know me and my team well .

    OnApp is not profitable, as a combined entity, so there's no tax to pay either way.

  • @ditlev

    fair enough thanks for clarifying :)

  • not sure the price will change or remain the same. I am thinking to switch to promox actually.

  • AndreiGhesiAndreiGhesi Member
    edited September 2014

    @ditlev said:

    Hard to believe that the price will not increase....

  • ditlevditlev Member, Top Host, Host Rep

    @AndreiGhesi said:
    Hard to believe that the price will not increase....

    Care to make a wager, sir?

    Thanked by 1perennate
  • @vpsplaza said:
    I am thinking to switch to promox actually.

    If you have clients that use TUN/TAP don't, also the modules leave quite a bit to be desired for Proxmox.

  • DalekOfSkaroDalekOfSkaro Member
    edited September 2014

    ditlev said: Care to make a wager, sir?

  • @Jack said:
    You could script something to run on a cron to enable tun every hour just cos it has no button for it doesn't mean it isn't possible.

    You could. But it's another thing to have to do...

    "Anything is possible".

  • @Jack said:

    That's one approach.

  • @ditlev said:
    OnApp is not profitable, as a combined entity, so there's no tax to pay either way.

    In what countries are taxes ONLY applicable if the company is profitable?

  • jhjh Member
    edited September 2014

    I think those concerned about pricing are asking the wrong question. "Will existing clients be asked to pay more?" Is subtly different to "will the pricing change?"

    I'm not attacking OnApp in saying this. I like their company a lot, and also think they will improve Solus as a product.

  • someguysomeguy Member
    edited September 2014

    I will probably be switching as soon as the pricing/packaging changes. Not a matter of if. It's guaranteed. They will probably try dance around it. Maybe existing customers (and nodes) will stay the same to prevent a blood bath but not new nodes. Something like that. I'm sure they will get their highly paid marketecture dept to figure out a way to put lipstick on the pig. Call it a feature. The increased pricing is to give you more support or whatever. Yea that's it. Seen it a thousand times before. OnApp is old school milk the customer so nobody should expect anything different. Nothing new about anything they are doing there.

    What really bothers me is the per cpu core licensing they use. Not per cpu but per cpu core. That's a rip off licensing model no matter how you try to slice it. CPU's are moving to more and more cores standard soooo....you get the picture.

  • RadiRadi Host Rep, Veteran

    Is it time to leave for Virtualizor?

    Thanked by 1support123
  • CloudxtnyHostCloudxtnyHost Member, Host Rep

    I'm not sure why anyone is stressed out about this.

    If anything I can see this improving SolusVM (which wasn't really being updated properly) and maybe we'll even see upgrade paths to OnApp which would be fantastic.

    Thanked by 1ditlev
  • The comment I don't get is the "combined entity is not profitable", yet they also claim they won't raise prices. Those two statements just don't add up when talking long term viability of the products.

    Thanked by 1jh
  • @MattKC said:
    The comment I don't get is the "combined entity is not profitable", yet they also claim they won't raise prices. Those two statements just don't add up when talking long term viability of the products.

    Ditlev or Carlos can elaborate more on this, but I wanted to provide a brief answer so this isn't left hanging. OnApp, is still for the most part a startup -- we were one of the first cloud automation software available to the market. While we've achieved a lot, there's still a lot more to do, and even through we have thousands of clouds online, there's an even larger amount of providers who haven't adopted an IaaS enablement software like OnApp yet. As we bring those providers into the OnApp family, we'll be able to achieve and maintain profitability.

    Thanked by 1ditlev
  • ditlevditlev Member, Top Host, Host Rep
    edited September 2014

    @MattKC said:
    The comment I don't get is the "combined entity is not profitable", yet they also claim they won't raise prices. Those two statements just don't add up when talking long term viability of the products.

    We're not profitable, but we've got plenty of cash. I've raised more than $25m for the business over the years, and we are in a situation where we have no reason to raise further capital for a long time - if ever again.

    SolusVM as an individual entity is profitable however, very much so actually. And the acquisition will take us closer to a positive bottomline...

    We will improve the SolusVM product, and make it even more profitable by simply providing a better service with a lower churn as the result.

    SolusVM is my 10th acquisition in the hosting industry - in about 8 years - this is not my first rodeo ... and I will not screw it up by trying to squeeze a few extra bucks out of every client.
    Will we add new features with additional cost?

    I don't know yet - hmm.. it could be that some time down the line our Intagrated Storage product would be an option - and if so, that would not be freely incl. Also, in OnApp we have more than 400 templates and some of those server images are commercial, provided by partners. They would also not be incl. for free - if they'd ever be made available to the SolusVM customer base. All this is just me thinking out loud, and I am sure there could be other examples of addon's. Like our CDN service perhaps?

    Guys - We're in it for the long run, we want to create a new category - a new wave of service providers that can compete with anything that Amazon sends your way. We want to empower a movement that can fight back against the consolidation happening.

    It's like building a Skyscraper, there's a lot of work and $$ going into a project like this before you can start to see the long term profits coming in.
    And our model will only work out if we have a large happy userbase with a common goal. So, why would I start out by alienating everyone with silly short term price increases.

    Makes sense?

    :)

    D

    Thanked by 1support123
  • AnthonySmithAnthonySmith Member, Patron Provider

    makes sense, so the base license will cost the same as it always has but it is going to become so modular over time if you want full functionality you will end up paying a lot extra.

    :)

    Thanked by 1netomx
  • hosthatchhosthatch Patron Provider, Top Host, Veteran

    @AnthonySmith said:
    makes sense, so the base license will cost the same as it always has but it is going to become so modular over time if you want full functionality you will end up paying a lot extra.

    :)

    You should add: For features that currently do not exist in SolusVM or any competitor product.

    What I currently understand from above, Ditlev said integrated storage and CDN - both which are not available in SolusVM and it will be a "favor" of OnApp to us if they can add it, even for a price. Nothing comes for free. I am sure if a competitor decides to package CDN and distributed SAN in the $10/mo/node range - OnApp will do the same or people will end up moving to the competitor, but I think we all know that such a competitor does not exist and probably will not either for some time. What currently is included in SolusVM, will stay at the same price, from what I understand from above.

    I honestly do not see a problem here if everything that comes with SolusVM still keeps coming at the same price and they allow enterprise features for an extra price.

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