Results 1 to 19 of 19
Thread: SM new deal
-
01-03-2005, 07:05 PM #1Web Hosting Master
- Join Date
- Jul 2002
- Posts
- 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.
-
01-03-2005, 07:11 PM #2Retired Moderator
- Join Date
- Nov 2002
- Location
- WebHostingTalk
- Posts
- 8,901
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.
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.
SiriusI support the Human Rights Campaign!
Moving to the Tampa, Florida area? Check out life in the suburbs in Trinity, Florida.
-
01-03-2005, 07:16 PM #3Web Hosting Guru
- Join Date
- Apr 2003
- Posts
- 282
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.
-
01-03-2005, 07:27 PM #4Web Hosting Master
- Join Date
- May 2001
- Posts
- 8,076
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.
-
01-04-2005, 12:10 AM #5Junior Guru Wannabe
- Join Date
- Dec 2004
- Location
- Charlotte, NC
- Posts
- 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
-
01-04-2005, 02:07 AM #6Web Hosting Master
- Join Date
- Jul 2002
- Posts
- 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.
-
01-04-2005, 03:12 AM #7Web Hosting Master
- Join Date
- May 2001
- Posts
- 8,076
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.
-
01-04-2005, 06:03 AM #8Disabled
- Join Date
- Oct 2004
- Posts
- 83
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
-
01-04-2005, 06:19 AM #9Web Hosting Master
- Join Date
- Jan 2004
- Location
- UK
- Posts
- 1,346
if you have an account in orbit... there is a special offer which is $79 I think with no setup
-
01-04-2005, 08:08 AM #10Web Hosting Master
- Join Date
- Mar 2001
- Posts
- 2,057
Interesting thread.
Prices in the German market for a dedicated server is as low as EUR 29 (about 40 US$ at the moment). Crazy.
-
01-04-2005, 08:19 AM #11Web Hosting Master
- 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.
-
01-04-2005, 08:32 AM #12Web Hosting Master
- Join Date
- Mar 2001
- Posts
- 2,057
Originally posted by Laws
But bandwidth on those is severely limited (10-15GB)
No, I speak about a dedicated server with 100 GB traffic for 30 EUR.
-
01-04-2005, 08:43 AM #13Web Hosting Master
- Join Date
- Dec 2001
- Location
- Toronto, Ontario, Canada
- Posts
- 6,896
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.
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
-
01-04-2005, 08:43 AM #14Disabled
- Join Date
- Jan 2005
- Location
- 2004-Tsunami.info
- Posts
- 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
-
01-04-2005, 10:07 AM #15Web Hosting Master
- Join Date
- May 2001
- Posts
- 8,076
Originally posted by Walter
Are you talking to me?
No, I speak about a dedicated server with 100 GB traffic for 30 EUR.
-
01-04-2005, 10:11 AM #16Web Hosting Master
- Join Date
- Mar 2001
- Posts
- 2,057
Originally posted by eddy2099
But SM is offering at least 12 times that amount of bandwidth for their plans.
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.
-
01-04-2005, 11:07 AM #17Aspiring Evangelist
- Join Date
- Nov 2003
- Posts
- 385
it all boils down to one thing: interest rates went up
-
01-04-2005, 11:29 AM #18Russ
- 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.
-
01-04-2005, 03:18 PM #19Web Hosting Master
- 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.