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Thread: SM new deal

  1. #1
    Join Date
    Jul 2002
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    3,374

    SM new deal

    i guess the good old day are gone. you'll never get a server for below $100 from SM. SM newest offer have no setup fee and that's it. i remember last year when i got my first SM, it was $89 per month with $99 setup fee and free cp. now the setup fee are higher and either free setup or cp. i got my first server for only $94.88 (this included tax, i'm in texas) and if i want to order a new server, i'll pay $114 (tax not included).

    can someone explain how the price keep going up instead down since hardware/BW are cheaper now than ever. btw, U.S. IT labor are still cheaper compare to 2000 dotcom rush.

    sorry, if this thread come across like a little rant. i just don't quite understand why the price hike compare just last year.

    cheer.

  2. #2
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    Re: SM new deal

    Originally posted by jt2377
    i guess the good old day are gone. you'll never get a server for below $100 from SM. SM newest offer have no setup fee and that's it. i remember last year when i got my first SM, it was $89 per month with $99 setup fee and free cp. now the setup fee are higher and either free setup or cp. i got my first server for only $94.88 (this included tax, i'm in texas) and if i want to order a new server, i'll pay $114 (tax not included).

    can someone explain how the price keep going up instead down since hardware/BW are cheaper now than ever. btw, U.S. IT labor are still cheaper compare to 2000 dotcom rush.

    sorry, if this thread come across like a little rant. i just don't quite understand why the price hike compare just last year.

    cheer.
    They are running a special right now... check out the Dedicated Offers forum. It is like $89 with no setup fee.

    The bottom line is, they are in business to make money. If they aren't in your budget range, then you may need to re-evaluate your budget or find another provider that can accomodate what you are willing to pay.

    I hope to see prices continuing to rise... tends to eliminate the kiddie-hosts and the fly-by-night hosting companies.

    Sirius
    I support the Human Rights Campaign!
    Moving to the Tampa, Florida area? Check out life in the suburbs in Trinity, Florida.

  3. #3
    Dedicated server providers have been locked in a race to the bottom in terms of price. The bad news about the race to the bottom is that the winner is just the first guy to go bankrupt.

    Consider this - one is looking at about $400.00 to buy the server to rent out for $89.00 / mo (not including taxes etc). That's 4.5 months if you don't use any bandwidth. Now throw in bandwidth consumption, setup time (assembly), OS installation, the cost of network maintenance (spammer removal, assign and provision IP addresses, etc), the cost to the accounting department to set up the accounts and maintain the people who refuse to pay on time, signup support, and power...it's pretty easy to stretch that out to nearly 6 months by the time you calculate in labor costs - and that's just to pay for the initial signup. The margin on an $89 server is really slim and even after the box is paid for it's still probably only returning in the ballpark of $20/mo.

    I think dedicated providers are just refusing to run the race. Customers really expect the world for $89 and I don't think SM is willing to play that game any more. Other companies have increased their prices recently and I expect that more are going to follow.

    The math on <$100 dedicated servers doesn't work unless you have extremely automated systems and don't provide too much support.

  4. #4
    Server cost is not the only cost components here. They have been actively adding new network pipes and have leased an additional datacenter and just purchased yet another to host new servers. This would mean new employees and additional costs. They have acquired several enhancements such as the Riverhead and been offering several other software add-ons for free. All of which would have cost them an insane amount of money.

    If there were to offer the old rates, chances are they would not be able to afford to offer all of the new enhancements without being in the red.

    I am sure that SM is in for the long haul and that means having a positive cashflow in order to serve us better.

    The prices now are not overageous. You should see prices way back before 2000.

  5. #5
    Join Date
    Dec 2004
    Location
    Charlotte, NC
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    60
    maybe the low prices were just to capture marketshare. My vote is for HiVelocity they are up and coming.
    Chris Austin
    Verae, Inc. Charlotte, NC
    800-99-VERAE / Verae.com
    Dedicated voice and data services

  6. #6
    Join Date
    Jul 2002
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    3,374
    SM can offer extra ram or hd with the new price. they are offering the same spec server that cost more. hardware price drop, SM should at least give out higher cup, ram or hd.

  7. #7
    they did made up for it by adding more premium network pipes and DDoS protection equipments for free amongst other things. I would think that those in itself is fair value.

  8. #8

    Re: Re: SM new deal

    Originally posted by sirius
    They are running a special right now... check out the Dedicated Offers forum. It is like $89 with no setup fee.

    The bottom line is, they are in business to make money. If they aren't in your budget range, then you may need to re-evaluate your budget or find another provider that can accomodate what you are willing to pay.

    I hope to see prices continuing to rise... tends to eliminate the kiddie-hosts and the fly-by-night hosting companies.

    Sirius
    Id rather see prices go lower. I think the "other" consumers outweigh the amount of people wanting to be kiddie hosts and fly by night hosting companies.

  9. #9
    Join Date
    Jan 2004
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    UK
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    if you have an account in orbit... there is a special offer which is $79 I think with no setup

  10. #10
    Interesting thread.

    Prices in the German market for a dedicated server is as low as EUR 29 (about 40 US$ at the moment). Crazy.

  11. #11
    Join Date
    Nov 2003
    Posts
    1,093
    But bandwidth on those is severely limited (10-15GB)

    SM have barely any space to put servers, both datacenters are full and the new one isn't fully launched until February...wait till then for lower pricing.
    ManageMyServices was sold by me in September 2009. I no longer have any affiliation with this company.

  12. #12
    Originally posted by Laws
    But bandwidth on those is severely limited (10-15GB)
    Are you talking to me?
    No, I speak about a dedicated server with 100 GB traffic for 30 EUR.

  13. #13
    Join Date
    Dec 2001
    Location
    Toronto, Ontario, Canada
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    Originally posted by jt2377
    SM can offer extra ram or hd with the new price. they are offering the same spec server that cost more. hardware price drop, SM should at least give out higher cup, ram or hd.
    You obviously haven't done the math.

    If you think theres such a huge margin out there, why dont you do some prep work and start selling dedicated servers (and I dont mean reselling)? You'll quickly learn how thin things can get I think, especially with that attitude.
    Myles Loosley-Millman - admin@prioritycolo.com
    Priority Colo Inc. - Affordable Colocation & Dedicated Servers.
    Two Canadian facilities serving Toronto & Markham, Ontario
    http://www.prioritycolo.com

  14. #14
    Join Date
    Jan 2005
    Location
    2004-Tsunami.info
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    23
    Originally posted by Tris-SA
    if you have an account in orbit... there is a special offer which is $79 I think with no setup
    IF !...

  15. #15
    Originally posted by Walter
    Are you talking to me?
    No, I speak about a dedicated server with 100 GB traffic for 30 EUR.
    But SM is offering at least 12 times that amount of bandwidth for their plans.

  16. #16
    Originally posted by eddy2099
    But SM is offering at least 12 times that amount of bandwidth for their plans.
    I know this - I didn't want to compare a $40 server with a $89 server.

    The really interesting topic for me is (may I quote):

    Originally posted by WH-Coach
    Dedicated server providers have been locked in a race to the bottom in terms of price. The bad news about the race to the bottom is that the winner is just the first guy to go bankrupt.

  17. #17
    Join Date
    Nov 2003
    Posts
    385
    it all boils down to one thing: interest rates went up

  18. #18
    Join Date
    Mar 2002
    Location
    Philadelphia, PA
    Posts
    2,517
    It boils down to one thing:

    ThePlanet is running out of space, it's that simple. They increase prices to slow down the slew of new sales.

  19. #19
    Join Date
    Dec 2002
    Location
    Prince Edward Island
    Posts
    2,289

    Re: SM new deal

    Originally posted by jt2377
    i guess the good old day are gone. you'll never get a server for below $100 from SM. SM newest offer have no setup fee and that's it. i remember last year when i got my first SM, it was $89 per month with $99 setup fee and free cp. now the setup fee are higher and either free setup or cp. i got my first server for only $94.88 (this included tax, i'm in texas) and if i want to order a new server, i'll pay $114 (tax not included).

    can someone explain how the price keep going up instead down since hardware/BW are cheaper now than ever. btw, U.S. IT labor are still cheaper compare to 2000 dotcom rush.

    sorry, if this thread come across like a little rant. i just don't quite understand why the price hike compare just last year.

    cheer.
    If a company is running out of space really quick to put servers do you think they would maintain their pricing? Its supply and demand. SM has been running out of space to put their servers therefore they had to slow the demand by increasing prices. Once the new DC opens and the space they have increases you will see some amazing deals. In the mean time you get the higher cost dedicated servers from them with occasional really good SM specials.

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