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  1. #1
    Join Date
    May 2005
    Location
    Toronto / New York
    Posts
    166

    Thumbs down GigeNet Cloud Price Increase

    I guess other clients have probably received the same email: GigeNet will be increasing their pricing and axe the free Windows licenses. The Windows thing was bound to happen really, and its just $10 per month anyway. But my question is about the price increase for resources. I wasn't really keeping track on how much I was previously paying "per credit" for resources (I hate this credit system, so confusing). Does anyone know what the bottom line increase will look like? Thanks.

  2. #2
    Does it only affect Windows VM?

    I cant go to client panel & forum to check for more info.

  3. #3
    Join Date
    May 2005
    Location
    Toronto / New York
    Posts
    166
    Apparently it impacts everyone, the whole "credit" system, as credits will be more expensive per unit. Apparently the prices changed on their website. I do feel they are higher but I don't really recall what the prices looked like previously..? Anyone know?

    http://www.gigenetcloud.com/cloud-servers/price.html

  4. #4
    Join Date
    Nov 2002
    Location
    Chicago IL
    Posts
    900
    It has been an extremely high request to have bandwidth included in the resource blocks, so we are including bandwidth, the price increase with the bandwidth inclusion still brings us under pricing of our competition. The slider also now includes discounting on the larger the resource block that is being used.

    Currently the control panel is down for maintenance to push out update of the code so the resource slider shows the bandwidth part of the resource pool.
    GigeNET
    Dedicated Servers + Cloud Servers + Colocation + DDOS Protection + IP Transit with FCP optimized routing
    Locations in Chicago Los Angeles and Ashburn

  5. #5
    Join Date
    May 2005
    Location
    Toronto / New York
    Posts
    166
    Thanks Ameen, I appreciate the response. But still just looking for an answer to how much more will the "cost per credit" be? The email was vague at best. Will you be enforcing a minimum bandwidth purchase, or can I continue with paying for what I use (which isnt much since I'm mostly doing development work)?

  6. #6
    Join Date
    Mar 2006
    Posts
    358
    I think it increases the base vm price by $14-$25/month

    Bandwidth & IP were initially included in $10/month, then the started charging $4 for a usage IP, then they started charging extra for bandwidth and allowed pooling, then they have added base bandwidth into the package and doubled base price without 4IP.

    So initial we got base vm (including bandwidth & IP) for $10/mo that is now at $24-34/month.

  7. #7
    Join Date
    May 2005
    Location
    Toronto / New York
    Posts
    166
    Quote Originally Posted by WindsOfChange View Post
    I think it increases the base vm price by $14-$25/month

    Bandwidth & IP were initially included in $10/month, then the started charging $4 for a usage IP, then they started charging extra for bandwidth and allowed pooling, then they have added base bandwidth into the package and doubled base price without 4IP.

    So initial we got base vm (including bandwidth & IP) for $10/mo that is now at $24-34/month.
    holy smokes

  8. #8
    Join Date
    Nov 2002
    Location
    Chicago IL
    Posts
    900
    Quote Originally Posted by WindsOfChange View Post
    I think it increases the base vm price by $14-$25/month

    Bandwidth & IP were initially included in $10/month, then the started charging $4 for a usage IP, then they started charging extra for bandwidth and allowed pooling, then they have added base bandwidth into the package and doubled base price without 4IP.

    So initial we got base vm (including bandwidth & IP) for $10/mo that is now at $24-34/month.
    That is incorrect, we never sold a package for $10.00/mo with bandwidth. Initially when we had vpshive, we sold packages not resource blocks, the lowest package was $25-30/mo with bandwidth.

    We switched to resource block system and did not include bandwidth, now we are including it and still lower then the rest of the market.

    Also you could not pool bandwidth before, and now you can. As far as the IP's go, because we give you private vlans we have to allocate a complete subnet, a /30 the smallest allocation you can do is 4 IP's. If we did not give you private vlan's you would not have the ability to move IP's between virtual machines.
    GigeNET
    Dedicated Servers + Cloud Servers + Colocation + DDOS Protection + IP Transit with FCP optimized routing
    Locations in Chicago Los Angeles and Ashburn

  9. #9
    Join Date
    Mar 2006
    Posts
    358
    ameen

    Yes, I checked! Earlier were under vpshive at $20/mo. Apologies.

    The costing system is very confusing. What would a base cPanel vm and Windows vm cost now with a IP?

  10. #10
    Shouldnt the price only affected those Windows VM? You stated in the email that it is due to windows licensing. What has it got to do with linux VM?

  11. #11
    and I am stuck with higher VM now. HDD size cant be reduced and I have applied all to the VM.

  12. #12
    Join Date
    May 2005
    Location
    Toronto / New York
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    166
    Also please clarify about the minimum bandwidth commitment, since it impacts developers like me.. Do I have to get a minimum 20gb now?

  13. #13
    Join Date
    Nov 2002
    Location
    Chicago IL
    Posts
    900
    Quote Originally Posted by fancypocket View Post
    Shouldnt the price only affected those Windows VM? You stated in the email that it is due to windows licensing. What has it got to do with linux VM?
    The windows licensing is different then the resource blocks. We are now including bandwidth with the resource blocks.

    Please open up a ticket directed at sales with your concerns and we will work with you on your questions and concerns.
    GigeNET
    Dedicated Servers + Cloud Servers + Colocation + DDOS Protection + IP Transit with FCP optimized routing
    Locations in Chicago Los Angeles and Ashburn

  14. #14
    Join Date
    Aug 2005
    Posts
    309
    Quote Originally Posted by ameen View Post
    It has been an extremely high request to have bandwidth included in the resource blocks...
    I'm not sure who asked for bundled bandwidth, but forcing everyone to buy it is a huge mistake. There are those of us who need large CPU/RAM deployments who don't use much bandwidth, and forcing us to double our costs just to pay for bandwidth we don't use making it hard to justify staying with this service.
    Last edited by Samuraid; 11-11-2010 at 09:11 PM.

  15. #15
    Ameen,

    If you told me 2 weeks ago, I would surely bring my VM elsewhere. This kinda business practice is bad and dishonest.

    I dont need to use that much of bandwidth and I am now forced to pay double the amount.

    My resource pool was 39.90 and now has become 87.89 and I cant scale down my VM because you cant reduce the HDD space.

  16. #16
    Join Date
    Apr 2003
    Location
    Montreal, Canada
    Posts
    222
    lol... that king of business practice is actually dishonest. Scary for current customers. Im actually amazed by this thread.

  17. #17
    Join Date
    Sep 2010
    Posts
    269
    I'm a bit more fortunate because I can scale back by deleting one of my four VMs. But it still won't bring the price back to where it was - I usually only use 50 - 100 GB of bandwidth at most and now I'm having to pay for 1250 GB!
    My biggest problem with this is that it came out of nowhere. There was no warning that this was going to happen. We did get an email about 1 HOUR before the changes started and the portal went down:
    Dear GigeNET Cloud Customer;

    Due to changes in our licensing structure with Microsoft and the competitive nature in our business, we are forced to change the pricing structure for our Cloud services. Unfortunately, we are no longer able to extend Microsoft Windows for free on our Cloud offerings. While our pricing is increasing, we will now include levels of bandwidth in our offers in order to keep the prices highly competitive in our market place.

    As you already know, we are arguably the most feature-rich Cloud providers on the market today. We will continue to upgrade our offers in the weeks to come, adding more features and improving speeds. It is our goal to offer you the most reliable Cloud product on the market today. It is important to us as an organization that you understand that we never take steps like this lightly and hope we can keep you, our clients, the most satisfied in our industry.

    We look forward to continued business with you and hope that if you have any issues, you will feel free to contact us so that we can work together to help your business succeed.

    Sincerely,
    GigeNET Cloud Management
    The Microsoft stuff was fine - I expected that, and I don't use Windows myself, but the bandwidth stuff was a huge surprise. I didn't expect Gigenet to remove options and flexibility from their offerings.
    I've been talking with support to see if they can offer me pay as you go bandwidth so I can get the cost under control.

  18. #18
    I'm sure there are very few (if any) customers happy with this change. Does Gigenet really want a swarm of unhappy customers bashing the company within forums all over the net? Will prospective customers, applying due diligence, want a host that doubles prices suddenly in a single day? Is this a bait & switch? What's to say this won't happen again? I for sure would want to avoid such a company.

    I'm ready to move to VPS hosting within a week if these prices remain. And yes I have found better deals. I would appreciate at least being grandfathered into previous pricing. If not, I'm out.

  19. #19
    Join Date
    Mar 2005
    Location
    Chicago
    Posts
    61
    This change was taken very seriously. We had several meetings about it and it simply had to be done. In no way was this a bate and switch. We feel horrible about having to charge people for windows licenses.

    The fact is we had dozens of customers begging us to include bandwidth in our packages so that was the reason we raised the pricing there. We also made MAJOR upgrades to our centralized storage and will be releasing a product that is now in beta that will quite literally shake the market to its knees. We have devoted 99 percent of our resources to make this product the best on the market today.

    That being said this will NOT happen again and the pricing is still below our closest competitors with the bandwidth being included and all things considered. We are very happy that we were able to provide such low prices to everyone for awhile but now the prices reflect what we absolutely have to charge in order to remain the least bit profitable. If you are a customer and are unhappy with the price change please email me directly at chris@gigenet.com and I will address everyone's issue.
    Chris Armer - Cloud Communications LLC
    GigeNETCLOUD.com GigeNET.com
    Phone: 1-800-561-2656 x 8106
    Email: chris.armer@gigenet.com

  20. #20
    Join Date
    Apr 2003
    Location
    Montreal, Canada
    Posts
    222
    Quote Originally Posted by chrisarmer View Post
    The fact is we had dozens of customers begging us to include bandwidth in our packages
    So for 12 customers you changed your maketing and sales pitch to include bandwidth?.... unreal.

  21. #21
    Join Date
    Mar 2005
    Location
    Chicago
    Posts
    61
    no.. dozens. We had about 50 customers requesting this feature as they were paying a lot of money for bandwidth. This was a VERY high demand feature and we also made network and san upgrades.. and we also had an increase in our microsoft licensing cost.

    I know that this is sudden but like I said. I am dealing with our customers and working with them. If you are a customer email me and I will help you out. I don't want to put people out of business or hurt anyone with this. chris@gigenet.com please email me and I will satisfy your needs.
    Chris Armer - Cloud Communications LLC
    GigeNETCLOUD.com GigeNET.com
    Phone: 1-800-561-2656 x 8106
    Email: chris.armer@gigenet.com

  22. #22
    Join Date
    Feb 2007
    Location
    Florida
    Posts
    1,932
    I'm actually spending less now because the additional cost was how much I was spending on bandwidth and now I have about 200GB of extra bandwidth.
    -Joe @ Secure Dragon LLC.
    + OpenVZ Powered by Wyvern | KVM | cPanel Hosting | Backup VPSs | LowEndBoxes | DDOS Protection
    + Florida | Colorado | Illinois | California | Oregon | Georgia | New Jersey | Arizona | Texas

  23. #23
    What is your resource pool like?

  24. #24
    Join Date
    Feb 2007
    Location
    Florida
    Posts
    1,932
    My main VM is just a 4 block VM (0.80CGHz/512MB RAM/20GB Disk) with cPanel. My other VMs are usually only up for an hour or 2 for testing and range from 3-9 blocks.
    -Joe @ Secure Dragon LLC.
    + OpenVZ Powered by Wyvern | KVM | cPanel Hosting | Backup VPSs | LowEndBoxes | DDOS Protection
    + Florida | Colorado | Illinois | California | Oregon | Georgia | New Jersey | Arizona | Texas

  25. #25
    Quote Originally Posted by chrisarmer View Post
    no.. dozens. We had about 50 customers requesting this feature as they were paying a lot of money for bandwidth. This was a VERY high demand feature and we also made network and san upgrades..
    Really? I haven't seen such commitment for rolling out other features? How many customers have requested for separate storage pricing? Also, this is not the first time pricing has increased. Pricing was also changed for IP addresses awhile ago. Pricing was also added for 7 day snapshots (pretty pointless feature). By this pattern alone, almost all the 'coming soon' features will sooner or later have a price tag, even if it's one of the more basic features.

    I hope the new product can justify the uproar GigeNet is getting over all of this, but at the same time if the cloud offering could not come close to many of the standard features of many other providers over the span of six months, then not sure what this holds for the new offering. Let's see.

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