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Is the Golden Age of LowEnd VPSes Coming to a Screeching Halt?

OVHOVH announced on June 14 that it will begin charging for IPv4 addresses.

That loud screaming sound you heard was thousands of low-end hosts watching their profit margins vaporize.

“Given the scarcity and therefore the increase in the cost of IPv4, we will not be able to maintain the freeness of additional IPv4,” OVH CEO Octave Klaba said via Google Translate.

OVH is undoubtedly the main platform for small hosts.  They rent a server, carve it up, and sell VPSes, and can offer OVH’s massive DDoS absorption capabilities as a selling point.  However, if they need to take on extra money for each IP, that will no doubt translate into higher prices for consumers.

This move hits as inflation costs are surging and will surgely result in upward price pressure on VPS offerings.  Although unrelated, DigitalOcean recently announced it was jacking up prices.

Perhaps if OVH charges for IPs, they can actually make a profit?

1 Comment

  1. LordSpock:

    This is probably a good thing in the long haul. It will mean OVH will no longer be the automatic choice for a bottom of the barrel cheap provider and might actually encourage a bit more market diversity.

    Sick of seeing every other offer being on OVH’s network. Nothing against OVH at all, I’m a customer of theirs – but when I’m looking for VMs, I want them off of their network.

    June 21, 2022 @ 11:13 am | Reply

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