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Originally Posted by Marks
I Disagree. Dedicated Servers will increase with power becoming more expensive and datacenter space cost increases whilst bandwidth becomes cheaper and as you can see several providers have recently increased their pricing.
I don't expect the 'budget providers' to last long in the industry because VPS's are becoming more efficient than entry level dedicated servers.
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I agree with you Marks. The costs decrease you see with hosting is due to sharp decreases in bandwidth pricing and to some extent hardware costs. Data center space and power are at a premium. In fact, one could argue that they are higher than ever. Just as we saw in the telecom service sector, competition dropped prices signifcantly, but eventually they level out.