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How can OVH and WebNx offer products at such a low price
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How can OVH and WebNx offer products at such a low price

Question:How can OVH and WebNx offer products at such a low price?

I came across some of their Dedicated servers. It was ridiculously cheap, how can they do that?

Low price makes me think twice.

I heard OVH was about to go bankrupt before and they got bailout.

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Comments

  • stefemanstefeman Member
    edited February 2020

    what a clever way to advertise webnx lol

    ovh is cheap cause of automation and non existent support.

  • PulsedMediaPulsedMedia Member, Provider

    stefeman said: what a clever way to advertise webnx lol

    lol :D

    HostMem said: I heard OVH was about to go bankrupt before and they got bailout.

    Source?

    Sometimes they go for super long ROI on the hardware, it's becoming usual for these to go even 3+ years. In case of OVH and Leaseweb cashflow seems to be more important than actual profit, they are probably getting cash for less than 1% interest rate and they just need to get some growth numbers done. Sometimes that type of activity is also done when a company plans to get sold to bulk up the numbers.

  • deankdeank Member, Troll

    The end is nigh on this one.

    "Jarland is stupid."

  • FranciscoFrancisco Top Provider

    OVH: It's easy when you get literally billions of free money.

    WebNX: They get some insane deals on hardware. He got me some deals and saved me a boat load of cash.

    Francisco

    Thanked by 2eva2000 vimalware
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  • user54321user54321 Member
    edited February 2020

    @Francisco said:
    OVH: It's easy when you get literally billions of free money.

    like every other big company gets, I'm not aware of any big successfull company which don't get a shitload of free money to do something somebody wants. If you haven't grabbed it bad decisions of yours I guess or you are simply to small to matter to the guys who give out all the free money

  • FranciscoFrancisco Top Provider

    @user54321 said:

    @Francisco said:
    OVH: It's easy when you get literally billions of free money.

    like every other big company gets, I'm not aware of any big successfull company which don't get a shitload of free money to do something somebody wants. If you haven't grabbed it bad decisions of yours I guess or you are simply to small to matter to the guys who give out all the free money

    I dont want VC, but thanks.

    Your comment doesnt change what I said though. OVH got $500M from the french banks and government and OVH US got over $1B in VC.

    Would they do loss leaders if they had to post a profit? Probably not as many.

    Francisco
    Francisco

    BuyVM - Free DirectAdmin, Softaculous, & Blesta! / Anycast Support! / Windows 2008, 2012, & 2016! / Unmetered Bandwidth!
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  • PulsedMediaPulsedMedia Member, Provider

    Francisco said: Would they do loss leaders if they had to post a profit? Probably not as many.

    Looks like the entire kimsufi brand is just loss leaders more or less. I still remember when their 2-3€ a month dedis was all the rage.

  • I don't think OVH is that cheap. Soyoustart and Kimsufi are, they probably take a loss on those but OVH Public Cloud and OVH dedi's are pretty expensive. There are a lot providers offering similar servers for less money.

  • MikeAMikeA Member, Provider

    @marvel said:
    Soyoustart and Kimsufi are, they probably take a loss on those

    Nah, they make profit on that stuff.

    ExtraVM - AMD Ryzen VPS starting @ $3.50
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  • WebProjectWebProject Member, Provider

    @MikeA said:

    @marvel said:
    Soyoustart and Kimsufi are, they probably take a loss on those


    Nah, they make profit on that stuff.

    Agree, as first of all they do oversell bandwidth and the brands like Soyoustart and Kimsufi they do clearing the old servers which used to be on OVH.
    OVH - premium dedicated servers hardware
    Soyoustart - slightly older stock directly from OVH
    Kimsufi - old hardware which they can use to squeeze some profit as hardware already paid for itself on above brands

    VPS Price Match Guarantee on: All our range of DDOS protected VPS Plans
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  • @PulsedMedia said:

    Francisco said: Would they do loss leaders if they had to post a profit? Probably not as many.

    Looks like the entire kimsufi brand is just loss leaders more or less. I still remember when their 2-3€ a month dedis was all the rage.

    Every big company has one of those guys that says, "we'll make it up in volume".

  • HostMem said: I heard OVH was about to go bankrupt before and they got bailout.

    I'm desperately waiting for your offer in LET

  • PulsedMediaPulsedMedia Member, Provider

    TimboJones said: Every big company has one of those guys that says, "we'll make it up in volume".

    When your running costs exceeds the revenue, how do you make it up in volume if every unit makes a loss? :)

  • ClouviderClouvider Member, Provider

    @PulsedMedia said:

    TimboJones said: Every big company has one of those guys that says, "we'll make it up in volume".

    When your running costs exceeds the revenue, how do you make it up in volume if every unit makes a loss? :)

    I guess you hope that for X loss leaders you get 1 better paying Customer that make up for it thanks to free marketing. Dunno - not something I’ll ever do.

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  • @ErawanArifNugroho said:

    HostMem said: I heard OVH was about to go bankrupt before and they got bailout.

    I'm desperately waiting for your offer in LET

    Not happening in the near future, we are good with small amount of client. Easy and Sustainable.

    Thank you though!

  • @PulsedMedia said:

    TimboJones said: Every big company has one of those guys that says, "we'll make it up in volume".

    When your running costs exceeds the revenue, how do you make it up in volume if every unit makes a loss? :)

    That's the joke.

    It's taking the idea that the more you build, the lower your per unit cost is (check the quantity pricing on Digikey, for example), while failing to realize that doesn't always apply.

    If you seriously run into it at your company, most likely an executive has stock that they'll dump after juicing the sales numbers before the losses are known. And they're doing it intentionally.

  • ninzo59ninzo59 Member, Provider

    @WebProject said:

    @MikeA said:

    @marvel said:
    Soyoustart and Kimsufi are, they probably take a loss on those


    Nah, they make profit on that stuff.

    Agree, as first of all they do oversell bandwidth and the brands like Soyoustart and Kimsufi they do clearing the old servers which used to be on OVH.
    OVH - premium dedicated servers hardware
    Soyoustart - slightly older stock directly from OVH
    Kimsufi - old hardware which they can use to squeeze some profit as hardware already paid for itself on above brands

    The product lifecycle is right, tho..

    Just have in mind : electricity / employees / datacenter investment / hardware replacement costs (HDD..).

    Don't think that Kimsufi is only profit.

    OVH - Dedicated Servers / Cloud

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