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Ovh and the bandwith offer
| Posted by HAMID1993, 07-05-2016, 04:32 PM |
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Hello
i have server with ovh and i upgraded my server to 1GB/s bandwidth for an additional of $56
now i received email from them saying that the offer is end and i think they will change the offer for the existing customers also
that the email i got
Dear Customer,
After being extended month after month, the 75% price reduction offer on the supplementary bandwidth option has come to an end. We would like to extend this offer again but this pricing is not compatible with the level of quality that we would like to offer.
Nevertheless, we have decided to maintain a 50% reduction on this offer. This new pricing is now applicable for all new orders. For existing customers, the price will be adjusted in 30 days.
We thank you for your confidence,
The OVH team
my question is this will also effect existing clients ?
thanks
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| Posted by SenseiSteve, 07-05-2016, 04:35 PM |
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It sure reads like it will effect existing clients. Why don't you contact them directly to ask for clarification?
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| Posted by ReliableSite, 07-05-2016, 04:52 PM |
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Based on the specific quoted line, it will affect existing clients.
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| Posted by web-earth, 07-06-2016, 04:07 AM |
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I think you should contact them directly to find out everything from the first hands.
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| Posted by JSCL, 07-06-2016, 04:26 AM |
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Definitely reads that on the next billing cycle they will be reducing your discount from 75% to 50% on the bandwidth.
Welcome to the world of month-to-month rolling contracts, they're completely OK (legally) to do it to you as well. If you want commitments, sign a contract for longer periods.
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| Posted by llothar, 07-06-2016, 02:32 PM |
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Someone really should start sueing OVH for wrong advertisement.
Just calling something 75% reduced or 50% reduced from something that was never to the claimed original price is definitely not legal in the EU.
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| Posted by FortressDewey, 07-07-2016, 12:12 PM |
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Am I the only one that got a chuckle seeing the word "quality" with anything related to this company? Perhaps they are finally realizing their prices aren't sustainable?
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| Posted by SYNUK, 07-07-2016, 12:35 PM |
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I'm sure a lot of people can otherwise state for the price they provide a decent level of service, network is pretty good in my opinion.
If they wanted to raise money to make profit from they would stop giving away IPs at one time price but as they are government funded they probably don't care too much but it is highly unusual for a price increase notice from OVH. (May be things are changing over there?)
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| Posted by SenseiSteve, 07-07-2016, 01:24 PM |
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Anytime you build an organization with bargain basement prices, you should expect prices to increase at some point down the line. It's inevitable.
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| Posted by Hosting4Real, 07-09-2016, 05:28 AM |
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Sure it's sustainable, if you build your own servers like they do :-) Learn a bit how their business works, and you'll be amazed that they actually make a decent amount of profit
And their hardware and network are actually quite good quality when looking at the price (and even looking at competitors) their network uptime is superb compared to many (more expensive) providers.
Their support isn't that great (except incident support) but people should know that by now :-)
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| Posted by MARDAKI, 07-10-2016, 08:59 PM |
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Hello,
are you doing live streaming from your server?
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| Posted by llothar, 07-11-2016, 02:26 PM |
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I fully agree - and i know that my server is just a mainboard on a cork board, with one huge 250cm fan behind the whole rack. I really love their optimization, i only wished they could offer 2 disks for RAID on Kimsufi equipment. Unfortunately i gave up my old Kimsufi Q6600 with 2x 500GB for 15 Euro.
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| Posted by swiftnoc, 07-13-2016, 04:50 PM |
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Build their own servers? that is what most providers do. Their customization ends at chassis, cooling and power, all other parts still need to be purchased. Bigger purchasing power you say? certainly, but in the low margin business of hardware parts that relates to a 18%-22% discount at the very best.
So, explain how you can make a sustainable business out of renting out $2000,- worth of hardware for $50,- / month? when its new, abandoned when it reached 18 months then rented at half price just to attract business? know you need to also throw in cost for routing, networking, power usage, space, interest payment on those loans, staff, insurances, payment processing fees and general overhead.
Sorry, you cannot.
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| Posted by Hosting4Real, 07-13-2016, 05:11 PM |
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Most providers buy servers from Dell, HP, IBM, Huawei or assembling supermicro boxes.
If you buy thousands and tousands of motherboards, disks, CPUs, and memory, making your water cooling solution and even building your own power supply to cut down time in maintenance costs, you make a few ranges containing almost same hardware to increase the amount of same type you buy, that allows you to save A LOT of money on the long wrong.
Also if you have to 2K USD for 2x 2TB enterprise disks, 32 gig ram, and a E3-1231v3 CPU + a motherboard, then I really don't wanna know where you buy your hardware, because even as a consumer I can go buy a server cheaper on list pricing :-) Sure the RUI might be longer than someone charging hundreds of dollars a month per box for less (and often consumer hardware), but I also do know by a fact that some hosting companies do have a very fast RUI on hardware due to their pricing :-)
And you can actually get more than 18-22% discount on a bunch of hardware parts :-)
Funny you're kind of offended by the fact that there's a provider that can actually sell cheap hardware (for many many years in a row), and still be in business :-) Sure it's more risky in some cases, but it's surely possible.
Sorry, you can.
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| Posted by swiftnoc, 07-13-2016, 05:46 PM |
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Not really. I have seen companies going as far as doing centralized AC to DC conversion, that saves a lot of heat in the DC and surely makes sense - it goes beyond what OVH does with their cooling tower approach. The fact is, many modern datacenters already reach incredible PUE and chassis and power supplies are not that expensive, the cheaper models are actually less power efficient.
No offense, OVH has gotten way more expensive recently then what they offered even a year before. Looking at their pricing now, they do not seem that competitive anymore, looks like they slowly increase their rates. Guess they came to the same conclusion as the market: Former pricing is not sustainable. I wonder if many companies would go for a $80,- E3 server with OVH (no Support, no SLA, No guaranteed response times) vs $100 - $120,- for the same E3 with SLA and quick support - if your a business owner who's business suffers if the IT infra is down, i guess that $20-$40,- extra for good support and hard SLA guarantees is a good monthly investment.
I noticed from the above statement made, that you have no experience whatsoever with the hardware wholesale market ;-)
Surely not offended. The provider mentioned has a debt of several BILLIONS of Euro to both investors as well as banks.
by burning money: yes you can
If you must make it profitable: No you cannot.
Looks like OVH is slowly cashing in on the userbase, they raised prices for new customers as far as i can tell and now it looks like they will raise slowly pricing for current customers.
Last edited by swiftnoc; 07-13-2016 at 05:53 PM.
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