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Is the low-end VPS market saturated?
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Is the low-end VPS market saturated?

imzcnimzcn Member

I've always been interested in getting into the low-end vps market, but is it saturated beyond belief? It would seem to me that in general there seems to be so much significant competition that entering the market would be difficult.

Comments

  • short answer: yes

    long answer: yes, unless you believe you can actually differentiate yourself from every other provider that rented a dedi, got a decent template, and a solus license

  • chrispchrisp Member

    It's saturated for US and NL locations, but not in general. It is saturated with unprofessional hosters, who rented some cheap dedi and followed some random openvz tutorial to set everything up.

    Know what you're doing, give good support and buy proper hardware and you will succeed.

  • @chrisp said:
    It's saturated for US and NL locations, but not in general. It is saturated with unprofessional hosters, who rented some cheap dedi and followed some random openvz tutorial to set everything up.

    Know what you're doing, give good support and buy proper hardware and you will succeed.

    Agreed 100%, if everyone invested some time and money into owning servers, providing locations out of the norm, and standing out the lowend market would be a better place.

  • edited July 2014

    @SrvisLLC said:
    Agreed 100%, if everyone invested some time and money into owning servers, providing locations out of the norm, and standing out the lowend market would be a better place.

    I agree, and I think this will slowly correct itself. I see lots of one man shops and kiddie hosts disappearing, shutting down... They simply can't compete with companies in the long term that own their own hardware, operate their own network, or even colocate their own hardware nearby enough where they can get physical access to it.

    Of course that isn't completely true in all cases - some companies that post here do an absolutely fantastic job that rivals or even exceeds companies with hundreds or thousands of employees, but they are the ones that own and manage their own equipment, not those that rent servers from ColoCrossing, DataShack, etc.

    Rented hardware means inflated IP pricing, investing in a company and infrastructure that isn't yours, lack of control over quality of hardware, etc. Especially at the sub-7$ price point it's very difficult to maintain a solid margin which you can then reinvest in your business.

    Even companies that take the time to make a decent website that isn't a template, it's a huge step in the right directions. While there's nothing "wrong" per se with a free template or one bought on Themeforest, it starts to get old real quick to see a hundred different companies with nearly identical websites. None of the major players in this industry use a template, and if they do they are so customized you can't tell it's a template.

    As far as locations most of the inexpensive dedicated servers the smaller providers here use for VPS nodes are all in the same handful of datacenters in the same oversaturated locations. The business model these companies follow makes it inevitable. Companies that own their own hardware have way more options in terms of locations.

  • The whole hosting industry is saturated, never mind low end VPS providers. I always see at least one new company/person a week posting hosting plans either on LET or WHT.

  • AnthonySmithAnthonySmith Member, Patron Provider

    It is a busy industry but I would not say it is saturated because people are setting up new hosts all the time and selling, sadly it is full of "I have a spare $300, lets sell 200 yearly plans quick, oops I spent all the money" hosts.

    Great thing to get in to but these days you need to think outside the box a little more.

  • drserverdrserver Member, Host Rep

    if you can take 6 months of loss, if you are honest person, if you are really dedicated you will succeed whatever market is

  • jcalebjcaleb Member

    As a comsumer, I find that there are so many host. But I only trust a few.

  • NekkiNekki Veteran

    I'm not sure the market is over-saturated because of (IMO) the unusual mindset of the customer. Whether it's the low prices, the short-term contracts or just something else entirely, it seems low-end customers aren't prepared to just stick with what they know and stay with the top boys. I'm not sure whether the low-risk makes people more likely to try out a different host, or whether it's just eternal optimism that the 'next great host' is just around the corner, despite evidence to the contrary.

    The bottom line is that there's money to be made for the new kid if they play their cards right, run a tight ship and don't come running their mouth on forums like so many do these days.

  • rds100rds100 Member

    Every working market out there is usually saturated. VPS and hosting in general is not special in this regard and is not different. It's just the reality of life, either deal with it or don't. There will always be old players leaving the market and new players entering it.

  • BoxodeBoxode Member

    Enter the mid-tier ("sweet spot") market like BuyVM have; much better.

  • yes,it is saturated

  • bigcatbigcat Member

    Back then I think its saturated enough, and then over the year I saw new provider like RamNode, CatalystHost, and INIZ getting good review and always leading the poll.

    So I think the market is always there if you know who to target. Learn from Oktay I guess ;)

  • GiulioGiulio Member

    I believe that only US location market is satured.

  • rm_rm_ IPv6 Advocate, Veteran
    edited July 2014

    bigcat said: Back then I think its saturated enough, and then over the year I saw new provider like RamNode, CatalystHost, and INIZ

    "New provider", which one? All of these have been posted on LEB since 2012, including Iniz (StormVZ).

    As for the topic in general, two* major things happened to the market, first it was DigitalOcean at $5/month (now along with clones like Vultr), and then very recently the $10 Linode. No one has any reason to bother with crappy one-man-show WHMCS+Solus providers selling OpenVZ in the USA for $7/month anymore, when they can just add $3 and get a Linode (or save $2 and go with DO/Vultr).

    ...* oh, and three if you count the 5 EUR KS1 dedi. But those are mostly out of stock, so don't affect things as much.

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