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  1. #1

    Question about VPS hosting pricing and value

    It seems that if a dedicated server is going for $99 a month and entry level VPS is going for around $40 a month. VPS is a nice way for hosting companies to make better profits (and fill in the gap before dedicated servers).

    I am guessing that a host can have 8-10 entry level VPS accounts on what would otherwise be a $125 a month dedicated server? So the profit is much higher. Does that mean I should hold-out for better prices on VPS or am I mistaken in my assumption.

    Please don't be condecending in your answers I am really looking at this from a laypersons view.

  2. #2
    Join Date
    May 2004
    Toronto, Canada
    You are mistaken.

    While you CAN run 8-10 vps accounts on a box with that price it would VERY quickly catch up with you. Performance and reliability would catch up with you. What you should be getting with VPS providers are highly reliable boxes with lots of ram, disk (must be hardware raid for redundancy) and lots of CPU. <<snipped>> Then lets talk about bandwith (minimum 100mbit port) vps control panel software etc..

    The node servers become your babies and you need to watch them like a hawk. <<snipped>> I am willing to bet that most companies do this and also have hot standby nodes and test nodes for trying new software and configurations as we do.

    I hope that helps. You should be able to get for $40 a vps that is run on a enterprise server class box with good uptime and support. You also should be able to get access to burst resources in excess of a $125 server.
    Last edited by anon-e-mouse; 10-03-2006 at 01:38 AM.
    André Allen | E: aallen(a)
    Linovus Holdings Inc
    Shared Hosting, Reseller Hosting, VPS, Dedicated Servers & Public Cloud | USA, Canada & UK - 24x7x365 Support

  3. #3
    Not necessarily, instead of 1 customer on per box, you might have 10-20. So even though a box brings in more revenue, there are higher costs associated with it.
    Slicehost - Xen VPS hosting
    Community - Forums, wiki, chat and technical articles

  4. #4
    Join Date
    Feb 2005
    Plus a $99 dedicated host is likely to give you worse performance than spending $99 on a VPS. All dedicated servers are not equal - a low-end dedicated effectively gives you far less resources than a high-end VPS.
    Koroush Ghazi
    Currently Hosted by: EuroVPS

  5. #5
    A $99 dedicated server normally has a spec of only one CPU, 512 MB RAM, ~80GB of hard disk space, no RAID-1. If you tried to put 10 clients on one of these, assuming you're not overselling, you be offering them 8 GB of space, ~50MB of RAM and an unreliable storage medium for $40. Profits are not that easily made!

  6. #6
    Here is a good article outlining dedicated vs. VPS hosting. You should be able to see from the specs the cost/time diff that goes into a VPS.
    Slicehost - Xen VPS hosting
    Community - Forums, wiki, chat and technical articles

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