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Big providers kills smaller ones?
It's amazing how big providers such as LeaseWeb, OVH and QuadraNet and etc. mainly focusing on Dedicated and Collocation nowadays getting KVM VPS services too.
What do you think guys about this? Will it damage average/small providers businesses or did it already?
Thanks!
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Comments
I cant speak as a owner or anything but in reality, I think small and average sized companies will be okay simply because many customers are like myself and don't want to deal with big corporations who are more focused on what you pay them and what they can upsell as they are unable to provide you with that personable support.
I'd choose an average size host who seems to be more down to earth and less robotic over a corporation so I do think there is more to it. You cant compete with big companies solely on product but you can compete with them on customer service and that is a big thing for me and I am sure many others.
@Kai most big corporation care about it's customers but they mostly sell unmanaged products for that price so can't blame for not configuring vps but at least they're ready to fix any issue from their side and always kind even if your create new tickets each time.
It might damage the companies who sell based on price only. I'll be honest if I wanted a cheap price for 1GB RAM, I'd rather pay £2 to OVH than some new host I've never heard of.
But if I want something reliable I'd still go for Ramnode, Prometeus, Vultr, Linode, etc. (i.e. the highly rated providers) since you'll get better support and probably better performance and the prices are still good.
And I'm a cheapo too! I would be more worried about companies like EIG who keep buying more and more hosts.
I noticed that,too and it made me turn away from LET.
No risk of losing money, no illegal fraudrecord shit, no LET drama, no "you can use your resources only for X and Y, but not for Z", great support, great pricing that 99% of providers here can't even imagine to offer ever, lots of features and payment methods, .. it's great
)
They just want to make money too.
The big providers are great, dont need to fuck around in the cesspool anymore when you got providers like Vultr, DO, Linode, Wable etc... Sure there are some smaller LEB companies I'll still use like buyvm & ramnode.. but I'm super glad that these bigger companies are getting into the vps market. If they take out some shithosts in the process, so be it, we will all be better off.
How large or small a provider's customer pool is really irrelevant to whether or not they have quality service. I don't really see an issue.
Quality service with low pricing it's what big corporations can do easily. You forgot that they run own DC?
I'm not sure how some host here can resolve any tech issues until DC staff fixes it for them.
See it know what about we're talking here?
Actually @alexvolk is right, just few weeks back quadranet posted their vps offer here on LET & the same idea struck me. Quadra is a big provider & it was offering services here for an affordable prices, I was very tempted. To answer your question, low end providers will always still have a niche/following because bigger providers will still be pricier in comparison. Their cost of doing business will always be more than a lowend provider.
Not true, the cost of doing business will be lower because they already have the space and the hardware lying around and are already paying staff to do support and server maintenance. Its like bonus money to them if they load up a bunch of nodes with VMs.
I personally don't see the attraction of hosting with the small guys. Go for somebody with a solid backing, owned hardware, IP space of their own, actual upstreams.
The only selling point that I find the small guys have is the cheap yearly VPSes. That is infact all I will ever buy from them anymore.
Cheap yearly containers to load your data into and watch it vanish when the one guy in charge has family issues/football tonight/detention at school? No thanks.
I should have specifically mentioned that the only companies I would buy these from are Ramnode and BuyVM @ $15/yr.
Big or small, I'm mainly interested in providers that do a good job of keeping their networks clean. Too often I see the "big providers" showing up in my abuse logs, and that leaves me not wanting to be associated with that kind of riff-raff. Along with LeaseWeb and OVH, I've seen enough junk from Rackspace, Linode, Digital Ocean, and AWS that I wouldn't host anything with them that wasn't incoming-only.
Dedi providers HAVE to move into the virtualization market to survive. Customers want "cloud" ease of use and functionality, especially snapshots (mmmkay, see what I did there).
Well, those spammers would still get service from small providers since the big ones have blacklisted them.
Only if the small providers are dumb. They have a lot more to lose if they allow in even a few bad actors. It also doesn't change the situation for you when you go looking for a host. If the spammers are getting kicked off by the big providers only after the fact, you still are in a situation where you're part of the polluted IP space if you go with that big provider.
Big providers will have tons of hardware lying about, more than most of the hosts we see here on LET. So they may as well sell some virtual servers. Take the example of LeaseWeb which is currently selling 1GB, 40GB, 4TB VPS for less than $3 per month ($32 per year if you pay yearly). This is lower than most offers we see here on LET.
However, their standard SLA says that they will take up to 24 hours just to respond to a ticket, irrespective of the severity of the problem. Customers who can live with that, will go with companies like LeaseWeb and have a great experience, as long as they don't need support. Those who do need some support but are on a budget will go with reputed providers like BuyVM. Yet others will go with the cheapest summer host out there since all they care about is the price.
I think there is space for everybody in the market.
I do not think so. It's the way you want to focus your business on, but I think that's wrong entirely..
And you are wrong.
IT is being dumbed down these days to allow everyone to use it, now it has gone to servers. The "advanced" users which left their windows desktop to paste some commands to run their own minecraft server have no clue about what is wrong when it is, they will need automated reinstall (IPMI? vKVM? Virtual Media? WTF?) automated backups to restore from, automatically, of course.
The market has many segments, from the company which outsources parts of it's IT department to every Tom Dick and Harry which run their cat pictures wordpress blog.
You can make a living from a few outsourced IT departments, but you must know the right people and are at their mercy, whenever "crisis" strikes and downsizing occurs, you are the first to be "negotiated".
Selling to everyone what they need is part of the survival strategy, it can also lead to growth, maybe you will do better in a field or another, you will recycle gear and surplus power/traffic, why not be open to all opportunities?
I will prefer to chose small company instead of ovh, DO, etc... because of small company care about their customers but with big company they will terminate your VPS for even small high load.
Is that true?