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ColoCrossing announces a price increase for server renewals from $99/year to $149/year.

24

Comments

  • xfqxfq Member

    A 50% price increase is really bad

    Thanked by 2beermachine tux
  • For a small setup, the headline jump matters less than whether the renewal price stays predictable. A rise from $99 to $149.04 is about 50%, and it is still reasonable for a dedicated box if the specs stay the same, but it changes the budget math if you planned around the old rate for two or three years. I would rather see a smaller, announced step for existing customers than a big jump at renewal, even with a quarter's notice — moving a live service just to chase the old price usually costs more in time than it saves.

  • LeviLevi Veteran

    Dump and move to another.

  • jcn50jcn50 Member
    edited November 5

    @nghialele said: do you maintain a site for this list sir

    Yeah it will be better if @yoursunny put this + the IPv6 on a website~ + add the URL in your signature!

  • x0x0xx0x0x Member

    I propose that all providers rename "recurring" to "temporarily recurring" and include a disclaimer saying "Recurring until our next price increase, whenever that may be." because apparently, in the LowEnd world, recurring doesn't mean forever :p

    Thanked by 1Saragoldfarb
  • FranciscoFrancisco Top Host, Host Rep, Veteran

    How are you guys complaining about $150/year for a literal dedi??

    Francisco

  • @jcn50 said:

    @nghialele said: do you maintain a site for this list sir

    Yeah it will be better if @yoursunny put this + the IPv6 on a website~ + add the URL in your signature!

    No i would put racknerd into it

    Thanked by 1Saragoldfarb
  • x0x0xx0x0x Member

    @Francisco said:
    How are you guys complaining about $150/year for a literal dedi??

    Francisco

    It's not about the price or how much the increase was. It's about the principle. The offer was advertised as recurring, yet the price was increased before customers even made it through their first billing cycle. That pretty much defeats the whole point of calling it a recurring deal. At this rate, the only thing that's recurring is the price increase.

    Thanked by 2Saragoldfarb JasonM
  • MannDudeMannDude Patron Provider, Veteran
    edited November 5

    @Francisco said:
    How are you guys complaining about $150/year for a literal dedi??

    Francisco

    Web hosting and servers are the only thing on earth not allowed to increase pricing, didn't you get the memo?

    Honestly, if 100 people cancel their $99 -> $149/yr dedi then colocrossing sells 100x $149/yr dedis before lunch. Still a stupid crazy low price for a dedicated server of any specification.

    Thanked by 1raindog308
  • Prices going up I can live with, hardware and power aren't getting cheaper. Pulling back an invoice that was already sent and reissuing it higher is the part that would make me cancel though.

  • @Francisco said: How are you guys complaining about $150/year for a literal dedi??

    Full time job for some here to complain. No payment though.

    Thanked by 1Saragoldfarb
  • I wont renew my colo dedi. Didn't like their old kvm access anyway.

    Thanked by 1Saragoldfarb
  • loayloay Member

    @MannDude said:

    @Francisco said:
    How are you guys complaining about $150/year for a literal dedi??

    Francisco

    Web hosting and servers are the only thing on earth not allowed to increase pricing, didn't you get the memo?

    Honestly, if 100 people cancel their $99 -> $149/yr dedi then colocrossing sells 100x $149/yr dedis before lunch. Still a stupid crazy low price for a dedicated server of any specification.

    It's a promotional offer, not their regular pricing, and I believe it was only available to a limited number of customers.

  • msattmsatt Host Rep, Veteran

    My principles say that an increase of 50% is unreasonable. I have self funded a free FOSSVPS node, but I am afraid I will have to close the node down.

  • rdesrdes Member
    edited November 5

    In the 20 years of using various server providers, I don’t recall ever being notified of a price reduction despite of multiple opportunities to do so (for example when energy was practically free, as it was in 2020).

    In fact, some times as a long-term customer, I ended up paying 10–15% more than someone ordering a new server with the exact same configuration.

    Two years ago, a server with an 15 year old E3 V1 processor and 16 GB of RAM was considered electronic waste. Company had to pay to have it disposed of, so they decided to still sell them just to cover their costs. Now, they seem to think these machines are some kind of incredible treasure. Fortunately, it looks like the bubble has started to burst.

    https://x.com/KobeissiLetter/status/2118357540299735378

  • rpqurpqu Member

    @rdes said:
    Two years ago, a server with an 15 year old E3 V1 processor and 16 GB of RAM was considered electronic waste. Company had to pay to have it disposed of, so they decided to still sell them just to cover their costs. Now, they seem to think these machines are some kind of incredible treasure. Fortunately, it looks like the bubble has started to burst.

    https://x.com/KobeissiLetter/status/2118357540299735378

    As expected.

  • A year and a half ago ColoCrossing was hacked with database breached. Why would anyone trust them so much as to pay 50% more? I find this quite fascinating.

  • bulabula Member

    according to Ernie the base services under $150 will be increased to $149/yr. So there may not be any BF server deals under $150 this year I take it.

  • SaragoldfarbSaragoldfarb Veteran, Megathread Squad

    @Advin said:

    @Saragoldfarb said:

    @SmartHost said:

    @default said:

    Price increases should be done only for new orders, not for existing ones.

    Tell that to the data center vendors, power companies, backbone carriers, and hardware vendors.
    Hosting providers cannot continue to get squeezed from both ends...something has to give.
    The only logical survival method is price increases.

    We have never raised prices in 30+ years in the industry, but even we are having discussions about how much longer we can hold back from doing so, and what it would look like if we did. We still continue to do everything we can to avoid such, until which time we have absolutely no choice.

    ~ SMARTHOST

    I agree. And cost increases for hosts are real. But these services were offered less than a year ago, advertised as recurring. That miscalculation really is on the host.

    Looking at the scale of CC, they just sold too many loss leaders, miscalculated the risk. It's on them.

    Keep in mind, costs were already known to only go up over time, at the time they dropped the offer.

    Thats the thing if you're a business. You take on both risk and reward. You cannot put the full burdon onto your consumer customers when things don't pan out your way.

    I'm not considering raising prices but I sympathize with some hosting providers that need to.

    The market last year is way different than what it is today and I don't think any hosting provider could have anticipated what component pricing is and the state of LLMs today. If hosting providers had this foresight, then we would've been hoarding hardware in anticipation, but it was literal weeks where a 2x64GB DDR5 UDIMM kit went from $400 -> $1500 and the situation only really became clearer after that (where there likely won't be an end in sight anytime soon).

    I'm sure a lot of these providers could have tanked small increases in hardware pricing with what has historically been normal, but the increases are very extreme. Hosting providers need to grow and be able to replace failed hardware.

    Some hosting providers seem to be taking this opportunity to increase pricing for existing servers by such a high amount that I don't think is necessarily justified. I don't think CC's price increase is really unreasonable though.

    Yes. Those points are hard to argue.... There's no winners on either side I guess. End of the day, it's still a good price for the specs offered. Yet, 50% is kinda steep imho.

    I use a lot of providers. Some been adjusting pricing for new orders, some just a small % every year.

    Then theres some just keeping it the way it is. Those were usually very limited loss leaders.

    Guess we might see the end or recurring deals this BF.

  • SaragoldfarbSaragoldfarb Veteran, Megathread Squad

    @RAVNIX said:

    @Saragoldfarb said:
    Looking at the scale of CC, they just sold too many loss leaders, miscalculated the risk. It's on them.

    I think every hosting provider offering LET rates has miscalculated the risk. Even with older hardware, infrastructure costs alone are increasing at an alarming rate.

    Datacenter power and space are becoming increasingly constrained in almost every major facility, and power pricing in some major markets is approaching nearly double what it was in 2024 (if you can even secure the space and power).

    Eventually, contracts will come up for renewal, and the new rates will be far from sunshine and rainbows.

    LET hosting has turned into a game of how long you can absorb the cost difference before it catches up with you.

    @RAVNIX said:

    @Saragoldfarb said:
    Looking at the scale of CC, they just sold too many loss leaders, miscalculated the risk. It's on them.

    I think every hosting provider offering LET rates has miscalculated the risk. Even with older hardware, infrastructure costs alone are increasing at an alarming rate.

    Datacenter power and space are becoming increasingly constrained in almost every major facility, and power pricing in some major markets is approaching nearly double what it was in 2024 (if you can even secure the space and power).

    Eventually, contracts will come up for renewal, and the new rates will be far from sunshine and rainbows.

    LET hosting has turned into a game of how long you can absorb the cost difference before it catches up with you.

    True. That's why they should think better about the promos they're offering.

    Selling 10 vms at 5/y isn't gonna bankrupt you. Problem is... Soms sell hundreds (or even more) of those. Its become a business model. When you have little to none margin to begin with you're screwed.

  • SaragoldfarbSaragoldfarb Veteran, Megathread Squad

    @forest said:

    @Advin said:

    @Saragoldfarb said:

    @SmartHost said:

    @default said:

    Price increases should be done only for new orders, not for existing ones.

    Tell that to the data center vendors, power companies, backbone carriers, and hardware vendors.
    Hosting providers cannot continue to get squeezed from both ends...something has to give.
    The only logical survival method is price increases.

    We have never raised prices in 30+ years in the industry, but even we are having discussions about how much longer we can hold back from doing so, and what it would look like if we did. We still continue to do everything we can to avoid such, until which time we have absolutely no choice.

    ~ SMARTHOST

    I agree. And cost increases for hosts are real. But these services were offered less than a year ago, advertised as recurring. That miscalculation really is on the host.

    Looking at the scale of CC, they just sold too many loss leaders, miscalculated the risk. It's on them.

    Keep in mind, costs were already known to only go up over time, at the time they dropped the offer.

    Thats the thing if you're a business. You take on both risk and reward. You cannot put the full burdon onto your consumer customers when things don't pan out your way.

    I'm not considering raising prices but I sympathize with some hosting providers that need to.

    The market last year is way different than what it is today and I don't think any hosting provider could have anticipated what component pricing is and the state of LLMs today. If hosting providers had this foresight, then we would've been hoarding hardware in anticipation, but it was literal weeks where a 2x64GB DDR5 UDIMM kit went from $400 -> $1500 and the situation only really became clearer after that (where there likely won't be an end in sight anytime soon).

    I'm sure a lot of these providers could have tanked small increases in hardware pricing with what has historically been normal, but the increases are very extreme. Hosting providers need to grow and be able to replace failed hardware.

    Some hosting providers seem to be taking this opportunity to increase pricing for existing servers by such a high amount that I don't think is necessarily justified. I don't think CC's price increase is really unreasonable though.

    Every day I hate Sam Altman and his ilk more and more.

    We can all stop using AI... Problem solved :)

  • SaragoldfarbSaragoldfarb Veteran, Megathread Squad

    @MannDude said:

    @Francisco said:
    How are you guys complaining about $150/year for a literal dedi??

    Francisco

    Web hosting and servers are the only thing on earth not allowed to increase pricing, didn't you get the memo?

    Honestly, if 100 people cancel their $99 -> $149/yr dedi then colocrossing sells 100x $149/yr dedis before lunch. Still a stupid crazy low price for a dedicated server of any specification.

    Bit steep for an atom but I get your point :D

    Thanked by 1MannDude
  • SaragoldfarbSaragoldfarb Veteran, Megathread Squad

    @bula said:
    according to Ernie the base services under $150 will be increased to $149/yr. So there may not be any BF server deals under $150 this year I take it.

    You're most probably right. And the invoice on renewal will be $199.

  • HostDZireHostDZire Patron Provider, Veteran

    @rdes said:
    In the 20 years of using various server providers, I don’t recall ever being notified of a price reduction despite of multiple opportunities to do so (for example when energy was practically free, as it was in 2020).

    In fact, some times as a long-term customer, I ended up paying 10–15% more than someone ordering a new server with the exact same configuration.

    Two years ago, a server with an 15 year old E3 V1 processor and 16 GB of RAM was considered electronic waste. Company had to pay to have it disposed of, so they decided to still sell them just to cover their costs. Now, they seem to think these machines are some kind of incredible treasure. Fortunately, it looks like the bubble has started to burst.

    https://x.com/KobeissiLetter/status/2118357540299735378

    This is merely a temporary dip. The price will likely rise again, and this cycle will probably repeat a few times before the market shifts into a bearish phase; currently, the asset is being manipulated.

    I do not anticipate hardware prices decreasing over the next few years. While I truly hope to be mistaken, we have remained hopeful for quite some time; however, it is now clear that this is not a short-term situation.

    Thanked by 1Saragoldfarb
  • pvumpvum Member

    @rdes said: In the 20 years of using various server providers, I don’t recall ever being notified of a price reduction despite of multiple opportunities to do so (for example when energy was practically free, as it was in 2020).

    great point

  • jbilohjbiloh Administrator, Veteran

    @pvum said:

    @rdes said: In the 20 years of using various server providers, I don’t recall ever being notified of a price reduction despite of multiple opportunities to do so (for example when energy was practically free, as it was in 2020).

    great point

    Electricity costs in most urban areas in the USA have done nothing but go up and to the right.

    Thanked by 1pvum
  • So if you bought nice spec dedi last Friday for 139$ you'll have na increase of 10$ but if you grabbed the cheapest 16gb one for 89$ you'll have increase of 60$

    Like wtf?

  • rdesrdes Member

    @jbiloh I was referring mainly to prices in Europe.

    Despite the declines, there haven’t been any price reductions from providers like Hetzner, for example. On the other hand, there have been 3 or 4 increases in last years initially due to electricity costs, and subsequently due to the cost of components.

  • SaragoldfarbSaragoldfarb Veteran, Megathread Squad

    @rdes said:
    @jbiloh I was referring mainly to prices in Europe.

    Despite the declines, there haven’t been any price reductions from providers like Hetzner, for example. On the other hand, there have been 3 or 4 increases in last years initially due to electricity costs, and subsequently due to the cost of components.

    I don't think that's accurate. Electricity and gas are at a prime high (NL). Gas is going through the roof actually.

    There's some dips, sure, but the overall tendency and expectations are not looking bright.

    Must say I'm not following that closely as my home and office building are self sufficient.

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