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Are lifetime dedicated servers (one time cost) a thing? - Page 2
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Are lifetime dedicated servers (one time cost) a thing?

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Comments

  • Its for your lifetime. Means they will hire an assassin to kill you after two months. If you value your life, run !

    Thanked by 2Mark_R KamA
  • @sdglhm said:
    Its for your lifetime. Means they will hire an assassin to kill you after two months. If you value your life, run !

    Well, that's escalated REALLY quickly...

    Thanked by 1luissousa
  • iwaswrongonceiwaswrongonce Member
    edited February 2016

    All the comments here are pretty right, but not because it's impossible. There is only one reason (well technically two) why someone would sell a lifetime VPS and that would be to raise equity at a lower rate than they otherwise would be able to, and at a rate lower than their internal rate of return on operations.

    So basically the upfront cost of the server is the present value (PV) of future payments discounted at some factor we'll call df. Let's let their internal rate of return (IRR) be r, and their potential cost of equity be re. In this situation, if irr > df and df < re, lifetime servers can be a viable business to support other more profitable product offerings. But you're just effectively raising equity with your cost of capital being the server upkeep less some amortized amount of hardware capex. The problem here is that a proper discount rate would make the upfront cost prohibitive for most people. Just a quick example, take Delimiter's $20/mo server. If we assume a df of 15%, that would make the PV ~= $1,600. I doubt anybody would pay that.

    The only other way they can make sense is from a pure rate arbitrage whereby I can sell you a server at some df and then go earn a risk free or low risk return somewhere else. In that case, I am effectively borrowing money from you at df and lending it back out at r and earning the spread between r and df (plus any other margin that might already be built into df). However you'd be much better off simply investing the upfront payment yourself and earning r and then using that to pay for a monthly server.

    TL;DR - Unless you are comfortable effectively buying equity in a company or believe that they have access to securities that have risk free yields that exceed anything you have access to, then no there is no reason to ever do a lifetime server.

    There are no free lunches folks.

  • This is impossible to say the least if your expect any real service.

    Servers cost around ~1000$.

    Power bill costs 10$ per amp per month.

    Network bill costs 25$ per 100mbps in bulk (like serious bulk ) per month

    So..... You could find a service like that but the upfront cost would be around 100k$ .

    The problem with any pay once services is they no longer have an incentive to keep improving . The incentive for them is to get you to leave as soon as possible so that they can take your money .

    Sorry I'm on my phone ....

  • Someone has to pay for those fees at some point. It is an interesting business model to offer "Lifetime" plans, but at some point the server will be fully loaded and no more money will be generated from it.
    I guess overselling it up to the point people start to leave is the next step ?

    Thanked by 1FarmerOak
  • FarmerOakFarmerOak Member
    edited February 2016

    Really good points in this thread.

    Just for sake of discussion (I agree with everyone that it very likely isn't feasible, along with lifetime anything plans):

    Kimsufi (reasonably respected from what I've read) offers ~$5/mon plans for basic Atom based servers. $60/yr and they eat hardware failures. Would it be reasonable for them to charge $600 for "lifetime" plus $50 deposit, plus say a $50 copay for hardware replacement? After 10 years, the hardware would likely be so weak as to limit its functionality, and the user could terminate the server to get the deposit back. The company presumably invests the fee and deposit during this time, as well described earlier by @iwaswrongonce

  • I mean, have you really looked at the quality of cloud at cost? It is utter rubbish.

  • @FarmerOak said:
    Just curious - are one-time fee, lifetime dedicated servers offered by anyone? Like Cloudatcost or https://theforevercloud.com but for dedicated servers. Or even a 5+ year upfront plan. Sorry if this has been discussed before, I searched for "lifetime dedicated" and "one time dedicated" and didn't find anything.

    For simple reasons, why would someone provide you service for life at the cost of his regular expenses? Even if there are such offers, you would a host care about you if you are never gonna pay him again? This will only fetch you an inferior quality service.

    At max you can go for 2,3 years of hosting. Such offers are abundant in the market and especially from those who have inhouse dedicated support teams.

    You will benefit a lot from such rather than the resellers as they have no direct control over their servers, forget about an immediate resolution in case of an issue.

  • SSG_PowerUpHosting said: why would someone provide you service for life at the cost of his regular expenses?

    As mentioned above, it is a way of raising capital. Presumably the hope is to either get out of the red, or use the money to expand. Either way, it's basically like a loan and suitable for those who don't have a more viable source of credit.

  • I think this is not possible, because there is DC cost, power cost etc.
    But you can buy some cheap price server. Here is one of example: http://www.webhostingtalk.com/showthread.php?t=1548963
    E3-1240v3 Dedicated server only $50/Month.
    Grab this type of any offer.

  • Good luck finding it and be sure to get scammed, otherwise it makes no sense.

  • Something smells here though. This is the second "user" to link that crap recently and they're barely users. Lol.

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