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And this is fair?
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The only nagging concern at the back of my head with a race to the bottom is that while we get our dirt cheap servers, will these providers end up with enough at the end of the day to keep their equipment in order, their support channels staffed/attentive and their nodes generally free of the riffraff -- in all, the quality that we generally expect regardless of the "low end" in low end box?
ChicagoVPS and a few others seem to be able to make it all work out without breaking a sweat, but I don't know if they're the exception or the rule. I won't complain about offers like this regardless, of course..
I am on the see saw about the profitability and what it means to end customers like me. I don't just buy cheap, but do prefer it in saturated markets (Chicago, Dallas, Kansas City, London, etc.).
I've for a long time only bought from facility operators directly (datacenters).
Only in the past year or two did we start using services further down the food cycle, from resellers. It's been mixed blessings.
Lots of VPS providers aren't colo'ing gear or anything. They are piecing out servers which may be bought from a reseller in the middle (seeing more of that lately).
When there is a problem, network issue, outage, etc. find we are lost in the weeds.
Dealt with this scenario in colo scenario and axed that location since the man in the middle always denied problems and stood in between me and the real facility provider.
Plenty of lousy facilities you can deal with directly though, but less heads to roll and people to contact when problems occur.
So, I think it is important to know what you are buying. Does the VPS seller own their own equipment or do they rent that? Who is their upstream, the datacenter or another reseller.
Price vs. price is a half fraudulent comparison absent all those details.
ChicagoVPS is a 2-3 level nested company (i.e. Datacenter >> Colocrossing >> ChicagoVPS). That is identical to most providers here. Difference is ChicagoVPS and Colocrossing have a personal relationship / tie as per Chris' employment and ownership roles, so ChicagoVPS is a 2 level nested company in my opinion. Probably provided better heads up info and working around issues better too since CVPS is privy to Colocrossing plans, outages, etc.
Lots of murmurings about that relationship and finger pointing. No one is sharpening that finger since Colocrossing is a favorite facility for many VPS providers and LEB is hosted there (conflict of sorts isn't it)?
Its like the Big Mac sauce, no one will ever know!
Truth is no one can do it. Ya maybe they can offer 20-50 of these at those prices but I can go on and on and on and not even break a sweat like it was said above. I never have stock issues and Im pretty sure everyone can contest to that
Spam must not be tolerated. For the rest if some people think that the way Chris has to affirm his superiority in this community is good sign of maturity and business capacity, then I'm fine with that.
I personally find the attitude excessive.
With how long people have to wait to be on LEB, other providers should not be posting on their offers trying to undercut them, if you want to start a thread on LET and you're within the guidelines, then knock yourself out.
Big Mac Sauce:
1/2 cup mayonnaise 2 tablespoons French dressing 4 teaspoons sweet pickle relish 1 tablespoon finely minced white onion 1 teaspoon white vinegar 1 teaspoon sugar 1/8 teaspoon saltI know your secret, it's called buying in bulk and overselling, you just do it better then some others.
IS DIS REALLLL?
He has spoke. Go Sal!
I personally find the attitude excessive.
2GB RAM under $6/m?
2x24 = 48GB RAM (Need 7 to 12GB Extra RAM for System, etc..)
12 Customers = $144/m
How they earn profit?
@nunim said: I know your secret, it's called buying in bulk and overselling, you just do it better then some others.
2x24 = 48GB RAM (Need 7 to 12GB Extra RAM for System, etc..)
12 Customers = $144/m
How they earn profit?
7 to 12GB RAM for system? What are you running![:\](https://lowendtalk.com/resources/emoji/confused.png ":\")
And im sure they use E3-1230/Supermicro, so there 32GB max right?
2x24 = 48GB RAM (Need 7 to 12GB Extra RAM for System, etc..)
12 Customers = $144/m
How they earn profit?
There are 128GB RAM servers (E5, 16 x 8GB RAM sticks) out there, 60 VPS x 2GB @ $5 = $300/month. Cost of E5 with 8GB RAM sticks very manageable, and at 60 VPS IOPS won't be a major problem either. ROI 12-24 months for hardware, sell as many packages as you can.
Yup, it's straight from the horse's mouth, well in this case executive chef's mouth...
With the speed at which some here buy new VPSes, I'm not so sure about that...
24 Customers = $144/m >
Now multiply those customers via overselling by a 4-6x.
$576 - $864.
That could be in 1U of space. Multiply that by oh, 30 rack units
It is big money.
If you aren't overselling, you are either charging non LEB rates or are losing money.
Chris charges non-LEB rates. Pretty sure he wouldn't be offering a VPS for $25 just to make his LEB specials look super-cheap, so he must be getting a reasonable amount of customers coming in at that price point.
@Nekki, agree.
I am often perturbed by regular price compared to promo prices. Always thought "specials" were basically price fixing and ripping one group of customers off.
"Specials" especially ongoing ones, are just a marketing maneuver. People feel like their getting a better deal if they're getting a $25 service for $5, instead of simply ordering the $5 service, and if you have some people that are too lazy/stupid to look for/find your coupon, it's more profit for you.
Information is power, those who have the information save, those who don't pay.
I'm not sure it's quite that blunt - I don't think you'd offer a service for a price that you'd assume only the uninformed would buy at. If Chris offers the Enterprise plan at $25 on his site, I'd think he has a decent amount of buyers who are prepared to pay that. Those buyers probably go some way to subsidising us cheap-skates.
Tsk, don't call us cheapskates. We're just intelligent (and demanding) buyers.
@Nekki, I'm not talking about CVPS specifically, look at all the places with ongoing "sales", StyleXNetworks, etc.. the people who are posting %50 off every week for months +, just marketing.
I would imagine the only places who would do that are ones that get virtually no sales outside of referrals from LEB/LET & WHT - otherwise, why would you risk losing 'intelligent (and demanding) buyers' finding you via word-of-mouth or search engines by offering a silly price that's purely there to make promotions look good?
what?
yeah not sure where @DewlanceVPS gets his numbers.
@DewlanceVPS - serious or trollin?
So, we need 7Gb ram for system memory? What is next? We need 100Gb for /boot?
ooh that is from @GetKVM_Ash that we need 7-12 gb for system memory. Wow what are you running on the backend?
Only when autoboot is not enabled
Nope, not from me. It was from Dewlance, i asked what the hell he was running to use 7GB of RAM.
So how much do wo need when autoboot is enabled?
Autoboot is taking up the RAM
He was using proxmox install, a xen server in the kvm, a windows hyper-v in xen hvm, inside running another proxmox where in KVM has installed WHMCS which controls Solus which controls the ovz part...
M