The LowEnd community was rocked today by news that OVH is substantially increasing IPv4 prices.
The OVH blog has a table showing the impact for different IP block sizes, which is strange since the pricing is the same whether you’re buying a single IPv4 or a /24:
- Old price: € 2.00 setup
- New price: € 1.50 monthly
Wow.
So if you’re a small VPS shop who buys your IPs from OVH, they’ve just added € 1.50 a month to the cost of each and every VPS.
Think about that. This isn’t a new datacenter fee or regulatory cost that you can spread out over your customer base. Fixed costs you can essentially reduce to nothing by selling more, but this is a new per-unit cost and it’s not small. If you were selling VPSes for €18/year or less, that is no longer viable. If you want to eat, you’re updating your WHMCS to increase prices by € 1.50/month.
If you can.
See, that’s where this will get interesting and ugly. There’s a fair number of providers who sell annual plans. If you sold a bunch of servers with €12/year plans, you’re facing doom unless you’ve got the pockets to ride out a lot of pain.
So here’s the question: imagine there’s a small provider who sold you a VPS for something like €18/year or even €36/year or more. What if the came to you and said:
We have a black swan apocalyptic price increase from our key supplier. There’s no way we can absorb the cost. We realize we made a deal with you and you deserve the service you paid for, but this is an extinction-level event for us. Can we make you a new offer we both can live with?
How would you react? Let us know in this poll:
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I also enjoy using LEBs! I have an empire of little guys for VPNs, larger guys for apps, and big guys for databases and storage. When I'm not in front a screen I'm into German Shepherd dogs, quality knives, target shooting, theology, tabletop roleplaying games, and forest hiking.
I enjoy writing technical articles here on LowEndBox to help people get more out of their systems. You can find me on LowEndTalk @raindog308
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Thank you for telling me my community was rocked.
I wouldn’t have known oterwise.
Yes, I made a typo.
Hope it is not just greed driving the price increase. Time will tell the real story…
I could really use a euro server for mitigating CLS issues.
Isn’t this just scare mongering to get us to buy more lowendboxes we don’t yet have a use for?
How much have you found server latency and underlying server performance impacting CLS? I always thought the number one factor causing CLS was website code (shifting images, etc).
Sad that I find out from Your blog and not from OVH directly.