Hosting will get cheaper ?

Started by meetdilip, June 03, 2015, 03:23:41 AM

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SenseiSteve

I also am looking for pricing to go up as it's already ridiculously low right now. Hardware prices may be going down, but support staff expenses are quite expensive.
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spidy

I would imagine it could be hard to compete on price,  especially if a country decided to offer very low reliable services.  In business some countries already subsidize income producing (foreign currency) businesses.

If a country like China decided to go into this full bore it would be very hard to compete with it.

Allan

Quote from: "SenseiSteve, post: 3503, member: 250"I also am looking for pricing to go up as it's already ridiculously low right now. Hardware prices may be going down, but support staff expenses are quite expensive.

This is so true, you have to sell 4x's the hosting to help make up the difference in pricing.

unixguru

The costs of hosting "if nothing goes wrong" is cheap.

But customers who "make things go wrong" need to pay for support.

A £1.99 hosting package almost implies "no support".

Of course, they get support, so you need to ensure everything is running well and documented,
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NoviceSupportiveHosting

Quote from: "SenseiSteve, post: 3503, member: 250"I also am looking for pricing to go up as it's already ridiculously low right now. Hardware prices may be going down, but support staff expenses are quite expensive.

Indeed I found at "data center pricing" you need to spend about 1.5x to 3x than a "unmanaged" piece of hardware to get to fully managed gears and to include at least an additional off site location from a 3rd party.  

Time that with additional features like auto installer, extra support, and so on I honestly believe that customers need to pay up for a quality solution. Rather than expecting the world for a few buck or less.

Allan

There lies the problem, customers are always looking for lowest amount out of pocket.

NoviceSupportiveHosting

Quote from: "Allan, post: 4101, member: 1"There lies the problem, customers are always looking for lowest amount out of pocket.

Actually I would "blame" the "ball game" more than the customers. Because while there are cheap stakes out there the real "problem" that this industry is hitting the fans at offering realistically priced services.  

For example while a customer may only pay a buck for the "world", when his/her HVAC system hit the fans chances are he/she won't have problems paying the $4,000+ for a new unit and such. Why you ask? Because they know and understand that there no such thing as a "$1 HVAC system".

spidy

Quote from: "Allan, post: 4101, member: 1"There lies the problem, customers are always looking for lowest amount out of pocket.

It would seem so. The prices will drop because of competition,  however it can only drop so far before it becomes unprofitable and then they will close down or increase their charges.

NoviceSupportiveHosting

Quote from: "spidy, post: 4109, member: 268"It would seem so. The prices will drop because of competition,  however it can only drop so far before it becomes unprofitable and then they will close down or increase their charges.

Or things will start hitting the fans, for example substandard support, hardware, networking, software, and in some cases even less than pretty things like not respecting their vendors, suppliers, and/or etc to sustain their unrealistic pricing.

David Smith

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