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Researching demand for VPS and dedicated servers in South America
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Researching demand for VPS and dedicated servers in South America

Hello everyone,

I'm wondering if there is demand for VPS, shared hosting and dedicated servers located in South America, southern Chile.(900km south of Santiago)
My company is building a green data center that uses the waste heat for drying firewood, initially it was going to be used for mining machines but since crypto took a dive and power here isnt that cheap we are trying to repurpose it for more typical data center workloads. We have Xeon E5 v2 and Opteron 62xx and 63xx machines, I hope they aren't too old. We also plan to offer dedicated Ryzen 3600 machines, turns out you can fit 9 mobos inside one of these 4u gpu mining chassis.

Thank you for your helpful comments!

Comments

  • hzrhzr Member, Moderator

    How much is bandwidth / etc?

  • BlaZeBlaZe Member, Provider

    I get a lot of outbound clicks on the South American VPS listings on ExoticVM.com and I can say that people are interested in those locations.

    ExoticVM.com - Find VPS in exotic locations! - Discussion Thread

  • MikeAMikeA Member, Provider

    no IPs from lacnic I would assume so it's going to be expensive to offer VPS. But I know it is something people would like to have available.

    ExtraVM - AMD Ryzen & Intel E NVMe VPS starting @ $3.50
    USA, CA, FR, UK, SGP, AU, RU

  • MrHMrH Member

    Yes.

  • Bandwidth would start at 100 Mb national and 20 Mb international, as we scale up we will be able to offer more.

    @MikeA said:
    no IPs from lacnic I would assume so it's going to be expensive to offer VPS. But I know it is something people would like to have available.

    Yes, v4 IPs are very expensive here, only the big DCs in the capital can manage less than 5 usd per IP due to bulk rates.

    We might start offering dedicated servers and higher end VPS due to this, but we plan to offer twice the resources for the same price as the cheapest providers in Chile and also accepting paypal and crypto payments.

  • South American market is underserved as of now, so I would say having a location there is good. Of course, the IPs and bandwidth are limited but that is true for almost every location except Europe and North America.

  • jfracjfrac Member

    We are open for business! We have a 100Mbps uplink to all of South America, the deal we managed to get was limiting the international downlink to 10Mbps. So serving content will be fine, uploading it might be a little slow.
    We have an HPC background, so we built an Infiniband network for all of our servers and dedicated servers too. As we grow we will be able to upgrade to 1Gbit in a few months.

  • uptimeuptime Member

    Congratulations, wishing you great success!

    the Amitz.party lives on!

  • marvelmarvel Member without signature

    I wouldn't bother. Everything latam is heavily overpriced. Further more the network is terrible in most locations, forget about DDoS protection as well.

    We used to run game servers in Sao Paulo and players even had a better ping to our US based servers. If you want to serve SA I would just go for a Miami based DC with good connections to SA.

    Especially shared hosting, I think most people there will just purchase US based services and enable Cloudflare for better latency. Much cheaper.

  • @marvel said:
    I wouldn't bother. Everything latam is heavily overpriced. Further more the network is terrible in most locations, forget about DDoS protection as well.

    We used to run game servers in Sao Paulo and players even had a better ping to our US based servers. If you want to serve SA I would just go for a Miami based DC with good connections to SA.

    Especially shared hosting, I think most people there will just purchase US based services and enable Cloudflare for better latency. Much cheaper.

    IMO this is the current situation. Routing is so bad here in Ecuador that yeah, I get a better ping to NA West than Brazilian servers

  • nature1nature1 Member

    The problem with South America is like Africa, the majority of South American Tier 1 carriers switch traffic in Miami instead of locally unless its Brazil (Sao Paulo). There's no real interconnection between the different carriers in South America, they just source their transit in Miami/New York/Washington. Your better off serving South America from Miami unless its the Brazilian market where there's a national internet exchange.

  • jfracjfrac Member

    MTR test in Chile, Peru, Brazil and Argentina:

    https://pastebin.com/1HBZF1YK

    Maybe Miami had better pings 10 years ago?

  • MrHMrH Member

    Results of the demo (IPv6 only - $ 1 / m)


    nench.sh v2019.07.20 -- https://git.io/nench.sh

    benchmark timestamp: 2020-03-24 01:38:35 UTC

    Processor: Intel(R) Xeon(R) CPU E5-4657L v2 @ 2.40GHz
    CPU cores: 1
    Frequency: 2399.996 MHz
    RAM: 483Mi
    Swap: 254Mi
    Kernel: Linux 4.19.0-5-amd64 x86_64

    Disks:
    vda 8G HDD

    CPU: SHA256-hashing 500 MB
    22.991 seconds
    CPU: bzip2-compressing 500 MB
    41.907 seconds
    CPU: AES-encrypting 500 MB
    14.880 seconds

    ioping: seek rate
    ioping: sequential read speed

    dd: sequential write speed
    1st run: 47.21 MiB/s
    2nd run: 48.07 MiB/s
    3rd run: 45.87 MiB/s
    average: 47.05 MiB/s

    No IPv4 connectivity detected

    No IPv6 connectivity detected

    Quite interesting price range compared to OpenCloud and ZGH

  • jfracjfrac Member

    @MrH said:
    Results of the demo (IPv6 only - $ 1 / m)


    nench.sh v2019.07.20 -- https://git.io/nench.sh

    benchmark timestamp: 2020-03-24 01:38:35 UTC

    Processor: Intel(R) Xeon(R) CPU E5-4657L v2 @ 2.40GHz
    CPU cores: 1
    Frequency: 2399.996 MHz
    RAM: 483Mi
    Swap: 254Mi
    Kernel: Linux 4.19.0-5-amd64 x86_64

    Disks:
    vda 8G HDD

    CPU: SHA256-hashing 500 MB
    22.991 seconds
    CPU: bzip2-compressing 500 MB
    41.907 seconds
    CPU: AES-encrypting 500 MB
    14.880 seconds

    ioping: seek rate
    ioping: sequential read speed

    dd: sequential write speed
    1st run: 47.21 MiB/s
    2nd run: 48.07 MiB/s
    3rd run: 45.87 MiB/s
    average: 47.05 MiB/s

    No IPv4 connectivity detected

    No IPv6 connectivity detected

    Quite interesting price range compared to OpenCloud and ZGH

    The free tier is quite limited, CPU is capped to 40% and you get 500 iops or 50/MBs writes.

    Thanked by 1MrH
  • SplitIceSplitIce Member, Provider
    edited March 25

    I'm sure there would be lots of interest, but expect high fraud rates. From our experience it's around 30%. It's this reason alone that we don't operate in the region and should be carefully considered by anyone looking to enter the market.

    Regarding DDoS Protection, there is options in Brazil. You aren't going to get the level of protection you are used to in US and Europe however.

    Thanked by 1jfrac
    X4B - DDoS Protection: Affordable Anycast DDoS protection including Layer 7 mitigation with PoPs in the US, EU and Asia.
    Latest Offer: Black Friday 2019 Offer
  • jfracjfrac Member

    @SplitIce said:
    I'm sure there would be lots of interest, but expect high fraud rates. From our experience it's around 30%. It's this reason alone that we don't operate in the region and should be carefully considered by anyone looking to enter the market.

    Regarding DDoS Protection, there is options in Brazil. You aren't going to get the level of protection you are used to in US and Europe however.

    Which countries in your experience have the highest fraud rates?

  • SplitIceSplitIce Member, Provider

    @jfrac Brazil (primarily) but also Argentina and Chile

    Thanked by 1jfrac
    X4B - DDoS Protection: Affordable Anycast DDoS protection including Layer 7 mitigation with PoPs in the US, EU and Asia.
    Latest Offer: Black Friday 2019 Offer
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