Is there still any demand in the budget VPS market?
I'm running a small software development business for about 10 years now. (Providing different things such as web development to enterprise applications.) We are also usually providing hosting of the applications for our clients ourself. That means, we run a 1/3 rack in Germany and operate a Proxmox HA cluster on some HP ProLiants. So, we are by no means network experts, but running these servers for our clients was no big deal so far (virtualisation and high-quality hardware does most of the job anyhow).
Granted that there is quite a bit of spare capacity available right now - both server equipment and humans - I played with the thought of spinning up a small sub-brand for low-budget VPSs. I could for example provide KVM with 4GB, 1 Xeon-core, 40 GB SSD (RAID 10) and daily off-site backups for ~6€ per month which seems about the price range of the cheaper competitors, while still making some profit. SEO and web advertisement knowledge would be available in-house too. Creating some fancy branding (better than some of these discounters which still look like they got their design back in 2000) and spinning up a billing panel based on Blesta wouldn't be too hard either.
The more important question though is, is there still demand for such services in the budget-VPS area? That's why I'm asking you guys: would you buy from a newcomer instead of one of the established ones if it would be just a few cents cheaper each month? Or, would there be anything you are missing from existing budget-VPS providers?
Happy to hear your opinion. Feel free to be direct, I'm happy with an honest answer, even if it is just "forget it, no chance".
Thanks already for any feedback!