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POLL: OVH IPv4 Pricing Apocalypse! If Your Provider Begs, What Will You Say?

NukeThe 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:

5 Comments

  1. Paul:

    Thank you for telling me my community was rocked.
    I wouldn’t have known oterwise.

    September 15, 2022 @ 5:51 pm | Reply
    • Paul:

      Yes, I made a typo.

      September 15, 2022 @ 6:10 pm | Reply
  2. Susan:

    Hope it is not just greed driving the price increase. Time will tell the real story…

    September 15, 2022 @ 8:58 pm | Reply
  3. rombo:

    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?

    September 18, 2022 @ 8:07 am | Reply
    • 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).

      September 18, 2022 @ 2:44 pm | Reply

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