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Why are 2 core 2 gig offers many times the price of single core 1 gig offers?
lowendguy7
Member
in General
Why isn't it just double each time? it seems there is an exponential price increase for the amount of cores/gigs you want which gets more and more the more there are.
If this is the case isn't it most cost effective to just buy a bunch of single core/1 gig servers? becuase I only pay 2 dollars a month for that now. I want to scale up but it costs 10 dollars or more for 2 core 2 gig from the offers I have seen so I could get 5 core/5 gig worth from single core offerings for $10.
So why such a discrepancy.
Comments
Because we want more money.
Because if you buy a singe core/1 gig ram servers for 2 dollars a month, then your provider either runs super super cheap hardware and still manages to create a profit, or they oversell their infrastructure so much that they make a profit, and hope that majority of the 1-core/1gig customers will just idle their VPS's (which happens most of the time).
If you're a demanding customer asking for 2 cores and 2 gigabyte of memory, there's actually a chance you're going to have a higher usage on the machine (else why would you need 2 cores) - so they'll have to make up for the fact your usage might actually be somewhat non-idle, and as a result they have to cover the actual costs of running your VPS.
If you buy dedicated resources (which in general is more expensive), then you'll see it double in price for double the resources.
Why?
Because they already from the beginning put a higher price, to actually cover the costs of you using up the full allocated resources.
Apples and oranges... You compare prices from different companies. Different type of server, different cpu, different location, different type of RAM, different support.
No serious company will increase the price of their own series of products this way. If the offers are for same spec machines, then, almost all companies will increase the price accordingly the more specs they give and, many times, not multiplied by 2x.
DO, Linode, prometeus are good examples: Double Ram means double price, double disk etc. For cpu, this is always shared and either you get virtual cores or limited cycles according with your plan.
Anyway, 2cores2Ram multiplied by more than 2x compared to 1core1RAM, for the same company and the same specs of the node, is something I -at least- haven't seen...
So you can clearly see it's more expensive to buy a larger amount of ressources.
The same is the case for Linode - Linode 12GB is 8 times more expensive than Linode 2GB, but only gets ~ 6x the resources.
It basically makes your point invalid :-)
The most extreme example:
-snip, not in the mood-
Yep, and even after they increased the pricing in some locations for the small one, then pricing actually in that case is fair IMO, because the pricing pretty much follows the amount of resources you get for Medium, Large and Extra Large (when they do not promo it).
In addition to what @Zerpy said, the smallest VPS plans may also serve as a marketing strategy to attract new customers.
Plus, from what I understand, providers often have odd amounts of unused space here and there that they can more easily package as small VPS plans.
Aruba's 1€ vps is a promo, not their normal price. They gained a lot of popularity by this promo.
The example is showing that most of companies do not send up "many times" prices for double specs, as OP is claiming. Many times means x4, x5. And in my post I talked for RAM and disk, stating that cpu scaling is another matter (as it is shared for 10's of vps and not dedicated, as the other specs are ot at least, should be).
If you pay a decent price, then your resources are dedicated - and also there's so many providers where disk space is oversold to realistic levels to lower the costs.
From where are you buying single core with 1 gb ram in 2$ i want to buy that too in bulk
As I said before, there is always arubacloud promo in DC Italy 1 and DC CZ: 1GB memory, single core, 20GB space, 1TB traffic and VM Ware virtualization.
Single core is not really 1 full core. 1ghz is not really 1ghz.