Today someone show me this vps offer

* CPU: 2 Ghz Dedicated Usage
* RAM: 1 GB Dedicated Memory
* HD: 50 GB Hard Drive Space
* BW: 2000 GB Transfer
* IP: 1 IP Address
* Cost: $ 4.95

I just can't believe and wondering how do they profitable ?

Quite an offer. Wow.

The answer to your question is that they are NOT profitable. As of date of this writing, a setup like this is major overselling and I am not sure the company will be able to carry on for long. Can you share the company URL?

Of course it depends on a lot of factors. Was it a public offer? Was it in any way unique offer (sponsorship, donation, etc)? Was it a standalone offer or other services were being purchased at the same time? How long has the company been in business?

Yes, just in case it's recognized as some kind of advertising I haven't mentioned the URL.
Here it is - http://volumedrive.com/hosting/

All their service seems unbelievable cheap.

I have heard about this company. Really weird to see a company offering such services at a low cheap price. If they keep providing that they will be out of bushiness soon. I bet people don't sign up because they know that its hard to provide a server like that only for $5.00 a month....

The website looks sweet, every given package looks more like a deal than anything, but does anyone know anything about the company except that "VolumeDrive is a hosting company dedicated to being the best in the industry"? It doesn't state if the VPS line is managed or unmanaged. I have no choice but to assume that it is unmanaged at these prices...

We use the VolumeDrive facility for our main Data Centre.
I must admit, they have been great so far!

- All their services are unmanaged and average support responses I'd have to say are within 5 hours.

I have never personally tried any of their virtual machines, but their dedicated machines have given us no problems.

We recently ordered a new dell which is on it's way to VolumeDrive hopefully by Wednesday. They are more than willing to work with their current clients, but it's quiet hard becoming a client from many reviews.

Usually orders may take 5 -7 business days if they do have stock. As you can see, their sold out on most servers.

Anyways, just my two bits!

Not sure what you mean... What do reviews have to do with the sign-up process?

Anyone should expect a VPS service advertised at this price to be unreliable. I would say that it is even impossible to provide it. The one who created it was either ignorant on how virtualization and VPS hosting work or intentionally advertised something that one can not provide!

I hope this includes a separate VLAN, otherwise your 1 IP will be very accessible to others. 1 IP!

Well, I have said it before, quality is key.

Try it, see how long they last, checkout the nice old hostrail aka fail the last few weeks.

By what I see, the plans could be looked at as a very similar price tag.
In my honest view, I would not touch it for anything serious, never.

Paying low will just cause you a big problem, and that is FACT, unless you use mass scale budget providers such as burstNET and so on.
But for Companies like that, no.

They most likely rent hardware or possibly do own it, but even at that price, 2GHz CPU power for 5 bucks, dam, if all users max out their usage, would love to see it survive.

Oversold, totally.

I know $2 vps is offered from directspace and this is the second one I encountered recently

That price is acceptable if it's a special offer, but not for a regular price. No. Just no.

In case you're new in the hosting industry HostChoco, VolumeDrive has been doing the "cheaper than possible" thing since a long time ago (a year or more ago) and they are still here.

I don't really see them being profitable in short term but if you stick with them long enough, they will be profitable. Basically their ROI is kinda like... 1.5 - 2 years. LOL

I wonder how the service is really. I would stay away from such an offer.

Volume drive is not doubt a famous company.

But they lack in many things, like support, hardware.

and these are the two most basic things.

btw this is an Openvz vps I guess which can be easily oversold.

Regards