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Dedicated Server starting at 2.99 EUR / month
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I am in EU and ordered after they made all the changes. I am curious if they will deliver or will invent some other thing to exclude me too. I will even send them papers if they ask, utility bills will not kill anyone. I will make an exception this time.
My order hasn't been verified yet (payment still pending). Does anyone know what I have to do to cancel it? (I bought a 16G, but since it doesn't allow additional IPs I'll buy a mini SP instead)
If you call them they should be able to cancel it. I accidentally ordered from .ie and the guy said he'll refund me.
Can't exactly call them. I left a support ticket though.
read http://forum.ovh.co.uk/showthread.php?t=608
this may be an answer.
I ordered from ovh.com despite being from Romania, absolutely no issues.
That guide seems outdated, e.g. they can't deny sale to EU citizens
thanks.
It's Saturday...
Ovh operates on such a massive scale that you can't even believe it. They have access to bulk rate green power, significant bulk orders of cheap low energy consumption atom servers and massive data centers with new data centers funded by the government grants and huge private investment. Ovh is more than another summer host.
Odds are, they don't even have to buy any new equipment. They could be reusing old outdated hardware to get rid of the surplus equipment in a effort to roll out new packages at the original price of the 2G.
No matter how massive they cant get power at 10% the regular going rate. No way, even if they are a steel mill or aluminium plant.
Maybe they are not losing that much money, but they do. At most the offer will be limited only to whatever old 1 core atoms they might have.
@maounique dont be so certain!
The power bought in bulk directly from power plants can cost 2-3 eurocents per kWh. These atoms probably draw about 20 Watts average. With 720 hours per month this makes about 15 kWh per month consumption, or less than 0.5 Euro power bill for OVH.
Of course there is also power needed for cooling, but OVH's data centers are known to be pretty efficient in this regard.
You have more than that in costings. Power isn't just whatever you get from power plants. There's redundant power, devices and lots of other stuff.
@concerto49 i know, i know, but in all cases for OVH the power costs much less than what you see in your home power bill.
I know. I'm not the one here whinging about them losing money as power alone costs more. Whilst I see that power + space + bandwidth alone is likely to cost more I see this is an attempt to take a huge market share. It's likely targeted (especially if it's EU only) against certain competitors.
If Ovh is able to pull this up they'll be my favorite provider!
the question is why? I'm not following the low end dedi market but I had the impression that with the <€10 atom offer they already were in an area with less followers in EU.
It's likely targeted specifically against their 2 main French competitors. Digicube.fr was the low price Atom leader until this week with an €8 box and Online.net (owned by ISP Iliad/Free.fr) had a €9.99 VIA Nano
I have some theories:
First they recently had this "security incident" where their customer details were stolen. I am sure some of their customers didn't like that at all. And if scanned IDs were stolen too, they might face criminal problems. So they needed some big PR stunt to repair their image.
Second, they have a brand new datacenter for 350k servers, which is also very empty and lonely place. An empty datacenter with no servers in it generates a lot of expenses too. They needed to fill some space in this datacenter - at least to test the systems, train the staff, etc.
There are probably other reasons i haven't thought of. Anyway i don't expect that this offer will last forever. Imagine how much they would loose if all the current 10EUR/month customers cancel and reorder at 3EUR. I doubt they can get that many new signups to compensate for this loss.
Add Hetzner as well. You have to remember there's also the ks that's an i5 and other stuff involved.
@prometeus Why? If I was running a business I wouldn't do it. Making money or not, these price wars aren't going to help anyone. If OVH succeeds and everyone else is out of the market there will be a monopoly and we all know what happens after that.
But hey, I got a new data center and some of you guy competitors are annoying me. What should I do? Let's take them out!
i.e. maybe it was for fun.
Seems like it's a limited time offer so they can fill up their new DC given it cost them 180 million euro to build. I don't think they considered other providers...
As long as they provide what I ordered all is good...
There is other stuff involved with one of OVH's French rivals and it's not hosting. It's the ISP/telecoms game (http://www.ovhtelecom.fr/). OVH is trying to break into the market and is still tiny (under 150K customers in its telecom division) compared to online.net's parent Iliad Group whose divisions have around 5 million ISP customers (and revenues over $1 billion). This latest price cut could be in part OVH's attempt to take a swipe at its larger competitor and inflict damage in any way it can (in this case by hitting its weakest division, the hosting business online.net).
To have your first product at the price it costs is very common way to advertise.
Here's my price workout:
Lastly, they don't profit on the 3EUR one, otherwise the one after it won't be 10EUR for such slight difference, more like 5EUR
They can't deal with carding/chargebacks fees as they obviously don't profit on these dedis ($10 chargeback fee vs $4 dedi), so they are very careful with fraud. They obviously prefer EU orders as they don't want to be accused for tax fraud because EU residents signed up with a foreign address to not pay VAT.
Hah, they got you to make an exception, so you're likely to buy from them in the future now that you have sent your info anyway, so it's working :-)
And the fact that there are tons of blog posts and even TWO threads on here clearly shows their marketing is working!
I called again at OVH. This offer is for Europe only! - remember that!
Slight correction: It's for residents of the EU member states only
For the 100th time... it wasn't mentioning "EU-only" on the site on the evening of 25th July, when most of us placed our orders. That was added sometime on the 26th.
Bla, bla. Take your phone and call the support.
I do not speak french well enough :P Not fancying the international phone call charges either. Maybe someone else in the same situation will call, I just filed a ticket for now (no reply yet).