VPS Hosting

A

aeromit

New member
Hello,

I've seen that the prices of VPS are going the same way shared hosting went - down. Don't you think that pushing prices down and down can lead many hosts to bankruptcy?
 
It often does. Some hosts try too hard to compete and keep lowering their prices, which means that they can't offer quality services with no money and eventually flop.
 
A Strong Feeling

hi

This is shane.
Well competition is at the highest level and is growing,but there is a theme for 'Quality' which never comes down and also does not let these companies bankrupt,infact the community keeps growing each and everytime.

regards
shane richards
 
I agree that competition will drive down prices until those who cannot compete will bow out. But I don't really agree that the prices for VPS have quite taken the "dive" that shared hosting has over the last few years as it is a more specialized offering. I still see quite a few high prices VPS providers.
 
VPS is not going down as much as Shared hosting. But its true that Web Hosting became too competitive. Hosts are competing in overselling and its reaching new proportions. Probably in next couple of years, we will see a lot of mergers and bankruptcy.
 
Hosts are competing in overselling and its reaching new proportions.
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It is indeed funny how offers that were just a year or so ago seen as too good to be true, can pose as "normal" hosting today.
 
The problem with VPS hosting is that you need to guarantee a certain level of ressources. Once you oversell too much, you really are in for a shocker.
 
alemcherry said:
VPS is not going down as much as Shared hosting. But its true that Web Hosting became too competitive. Hosts are competing in overselling and its reaching new proportions. Probably in next couple of years, we will see a lot of mergers and bankruptcy.
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I agree...

Shared hosting went DOWN but I dont think VPS hosting went down too much....
 
The prices of VPS are not going down the same way prices of shared hosting went down but yes they are going down. Probably a lot of competition and saturation of the market is driving down the prices and with it the profit margin. Diminishing profits or losses incurred due to the intense competition leads many hosts to bankruptcy.
 
Admittedly, as a customer, I have not been paying enough attention to the VPS pricing ... but I did get a "flyer" from Dotster saying they are now offering the VPS option. And it "seemed" to be an enticing price.

But ... in my uneducated opinion ... smaller companies are foolish to try to keep pace in their pricing with the large companies. Especially if it means cutting into resources they need to offer the service their customers need.

No matter what ... there will always be customers like myself who would rather pay more for a product and be with a company where I am person & not just a number on a list of thousands of accounts.

Most times, although the advertising might all sound the same, the actual service & product package a customer gets from a smaller company is dramtically different (and superior) to what one can expect from "most" (if not all) larger companies. So they shouldn't be compared as if they are both apples. No matter what is said ... its very much an apple & an orange.

Unfortunately ... I guess most consumers don't actually see it that way.

JMHO
Peter
 
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Also, while VPS pricing may be getting cheaper, most of them do come unmanaged and are mostly unsuitable for hosting except for a small number of sites. So let's say you get one for 20$, add cPAnel for 5-10$, get it managed by, let's say, PSM for 29$...and host less sites than you can on a powerful reseller server.

Where's the deal then?
 
Anthony's right. The whole cheaper VPS trend can only be overselling fueled anyway. Costs in the hosting industry are not diminishing at an accelerated rate.
 
shared and virtual privet server are allmost the same ... you share the banwdith and server resources with others... this is why you should pay less.. the badwidth prices went down this it why the plans cost now less :)
 
Shared Hosting price will always lower, but i cant see how VPS can be cheap... VPS is a % of the server that you cant oversell...
 
I will be getting VPS in the future, it will be a step I take until I get a dedicated server. I feel it offers a good step up when it is needed without forking out all the money needed for a dedicated server. Of course, this could change if the numbers look right to get a dedicated server at the time.
 
Hello,

Nobody starts a business for runing it into loss. There are few hosting business which had bankrupted but that can happen to any kind of business.

Shared hosting of course there is a lots of competition.

Thank you.

Regards,
 
To be honest, there are companies out there that offer ridiculous packages like "unlimited bandwidth" on a VPS, first of all 10mbit unmetered does not mean unlimited bandwidth it means that it's capped off. All those VPS hosts need is a couple torrenting customers and the bandwidth is gone. Now those VPS hosts may try to beat competition of the larger companies by offering those packages at $5/month for like unlimited/unmetered bandwidth, 256 mb ram, and 40 GB's of space. At those rates the server would be sold out by like the 30th customer 30x5 = $150/month, that is if they have like a core 2 duo with 4 MB ram and maybe like a 400 GB raid. Now if they built that server, the cost of the server would generally be around 1.2-1.8 G prices on core 2's have dropped, but in the time frame we are talking about 6 months ago they were running like 2.2 grand to build the entire system with premium ram not the junk stuff. Now if that company is renting the core 2 duo more than likely they are spending over $150/m and if they bought the server and decided co-location was a good option they are spending in the ballpark of $100-130/m not including the cost of the IPs, so for a low level range add on 1.50 per additional IP, $160/Month. They try to drastically oversell to 40-50 customers and trying to hit $200+/m profit on that server the whole time barely making 50-100 profit and taking 1-2 years to pay off the server and barely covering cost.

Sorry for the hack slash format of the post, I will edit corrections in a little bit.
 
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TorrentHost said:
Shared Hosting price will always lower, but i cant see how VPS can be cheap... VPS is a % of the server that you cant oversell...
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Actually you can oversell VPS servers. You can easily oversell a VPS node just like a shared server. It depends on the technology you use but it can be done.

There are many providers that oversell there node to increase profits.

Take Virtuozzo's ROI model. They try to tell you that you should have a 30VE license on every server to increase your profit margin. I am sorry though if you sell what is the average size VPS which is 256MB and 384MB you will not be able to put 30VE's on most servers.

To do this you would want at least Dual woodcrest server 5150 or 5160 with a RAID 10 and 8GB of RAM. This maybe if your VPS users are not real busy can support 30 VE's. Not likley if they are busy.
 
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