View Poll Results: When leasing dedicated servers, which do you prefer?

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  • Monthly - Higher Price

    18 69.23%
  • Contract - Lower Price

    8 30.77%
Results 1 to 23 of 23
  1. #1

    Monthly or Contract - Which do you prefer?

    Is it important to have the option to pay monthly or are you happy with term contracts, as long as the price and service standards are there?
    Shawn Bray
    Pinellas Hosting - www.pinellashosting.com
    Dedicated Servers | Collocation | Webhosting | Data Backup | Domain Registration

  2. #2
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    Well, I hate contracts when it is the first time I'm going with a host. If I don't like them, I'm fed up with them. However, if I know that the company is good (for my needs) then a contract can be nice, if you expect to use the server for atleast the duration of the contract.

  3. #3
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    I think with where the industry and most of the competition are going there's no reason to go with anything BUT a monthly term.

    Many reputable hosting, or dedicated providers have no issue offering a discounted monthly contract on par with any long term contract.

    Every business out there loves to be able to book a long term contract to lock in a client, but I think a with the right company and client offering a pure monthly is a win-win.

    I also like that some companies have been offering the "6mo buy-downs/setups" for monthly customers, letting them minimize the monthly even more if they've reached that comfort level that often characterizes the point where a customer would signup for say a year term.

    That's not to say that long term contracts aren't necessary in some cases like Colo, but most larger companies can minimize or eliminate that necessity if they desire.
    Last edited by sshepherd; 03-03-2008 at 09:24 PM.

  4. #4
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    I hate contracts because I have to pay too much at a time.

  5. #5
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  6. #6
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    Quote Originally Posted by sshepherd View Post
    I think with where the industry and most of the competition are going there's no reason to go with anything BUT a monthly term.

    Many reputable hosting, or dedicated providers have no issue offering a discounted monthly contract on par with any long term contract.

    Every business out there loves to be able to book a long term contract to lock in a client, but I think a with the right company and client offering a pure monthly is a win-win.

    I also like that some companies have been offering the "6mo buy-downs/setups" for monthly customers, letting them minimize the monthly even more if they've reached that comfort level that often characterizes the point where a customer would signup for say a year term.

    That's not to say that long term contracts aren't necessary in some cases like Colo, but most larger companies can minimize or eliminate that necessity if they desire.
    Unless theres a large build out cost, colo is actually the best service to offer on month to month.
    The clients are more mature, and theres less risk of churn.
    Dedicated server clients you run the high risk of not even receiving a cancellation notice or replies to outstanding invoice notices saying they want to cancel. They think they can run away and get scared and dont reply when they get past due invoices.

  7. #7
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    I`d go with monthly and lower price. If you have good & reliable service people will stay and grow with you. Why penalize them with higher fees if they want to be on month to month terms
    Petr Kral - FDCServers.net LLC
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  8. #8
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    Quote Originally Posted by bummer6666 View Post
    I`d go with monthly and lower price. If you have good & reliable service people will stay and grow with you. Why penalize them with higher fees if they want to be on month to month terms
    I agree 100%
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  9. #9
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    Quote Originally Posted by AFerrier View Post
    What does a contract have to do with how much you pay at once?
    i agree im sure a contract is just a lockdown and if you choose to not pay another month they have the right to charge a exit fee.

    Contracts dont limit you to how often yo upay them.
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  10. #10
    Join Date
    Jan 2004
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    I have no problem in going on contract if the DC/provider has on their terms that if the DC/provider does not provide 99,5% uptime then the client can cancel at any time with douth paying full contract.

    The contract would have to be based on SLA hardware and network.

  11. #11
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    I always go contract free if I can. Contracts rarely seem to be locking a good price for a long time but rather locking you into paying for a long time. I seldom see a contract that looks so good that I cant turn it down in comparison.
    Joe Morgan @ Joe’s Datacenter, LLC- www.joesdatacenter.com
    Affordable & Reliable Dedicated Servers| VPS |Colocation in the Midwest

  12. #12
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    I hope theres this many of you still rooting for month to month when your provider raises your prices.
    For some reason lots of people think hosting is absolved from increased costs, and bill changes. If you are month to month, just like your electric bill, cable bill, rent/mortgage and more can change at any time, so can your hosting bill. After all, you are only guaranteed that price for 1 month; the month you paid for. Month to month... thats how it works.

  13. #13
    If I was customer (I was at the tiem actually) I'd prefer contract. But in most cases contract means you have to pay in advance. I think that there is an option to charge customers less on monthly basis when they have an annual contract signed... but this is something that every web host shall calculate for itself.
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  14. #14
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    Quote Originally Posted by AFerrier View Post
    I hope theres this many of you still rooting for month to month when your provider raises your prices.
    For some reason lots of people think hosting is absolved from increased costs, and bill changes. If you are month to month, just like your electric bill, cable bill, rent/mortgage and more can change at any time, so can your hosting bill. After all, you are only guaranteed that price for 1 month; the month you paid for. Month to month... thats how it works.
    The upside being month to month the customer is completely free to transfer their service to another company if they don't feel the value is there to justify the raised price.

    It can also keep a hosting company honest as if their support or network quality are allowed to degrade, the client isn't locked into the contract and can find another provider.

    If we were talking about leasing a cage or rack, yes I'd definitely do a contract to lock in my costs there, but not for hosting or dedicated servers - not enough upside IMO to make it worthwhile.

  15. #15
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    A contract is good to have, it gives both part a secure ground to hold on, with the many fraudent companies lately, it's a good thing to have when you go up to curt.

    But, as some mentioned, Month to Month is mostly used/preffered, and so do we, for the smaller servers thought, our high end servers are on contracts.

  16. #16
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    I prefer monthly contracts and ability to cancel the service anytime. Sometimes it comes to me useless to tell provider that "I will cancel my service 40 days later!" So, no-contract - low fees - low cancellation time -not 40 days but maybe 1 week-

  17. #17
    Join Date
    Nov 2007
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    411
    Term contract is cheap may get discount . But no hosting is cheap day by day degreesing the price. So better monthly or short term contract is better

  18. #18
    Join Date
    Apr 2007
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    136
    Hi!

    I would prefer monthly, though i know i have to pay something extra for the same but at least i have a option to shift my services at any point whenever i will find the services are not satisfactory.

    Regards,
    "When You fail to Plan, then you Plan to Fail"

  19. #19
    Quote Originally Posted by -p9- View Post
    I hate contracts because I have to pay too much at a time.
    With most contracts, you don't have to pay all up front. It's just a matter of putting in certain terms, like for a reseller to receive a SUPER discount he/she must meet certain revenue goals on schedule.

    I believe what you are referring to are options like either paying monthly, quarterly, semi annually, or annually. With annually, you will pay less overall but all upfront.
    Shawn Bray
    Pinellas Hosting - www.pinellashosting.com
    Dedicated Servers | Collocation | Webhosting | Data Backup | Domain Registration

  20. #20

    Cool Price is not the only contract ingredient

    Quote Originally Posted by MOCCP View Post
    I always go contract free if I can. Contracts rarely seem to be locking a good price for a long time but rather locking you into paying for a long time. I seldom see a contract that looks so good that I cant turn it down in comparison.

    I'm glad you wrote what you did. It made me think about another post about what is most important when looking for a host. Keep in mind that price is not the only important ingredient in a contract. Other VERY important things might be, network up time and an out if it is not met; the fact that the price is lower and locked in and won't be raised when monthly prices rise; and other negotiated terms which simply cannot be done with a monthly agreement.

    Thanks for mentioning this.
    Shawn Bray
    Pinellas Hosting - www.pinellashosting.com
    Dedicated Servers | Collocation | Webhosting | Data Backup | Domain Registration

  21. #21
    Quote Originally Posted by MOCCP View Post
    I always go contract free if I can. Contracts rarely seem to be locking a good price for a long time but rather locking you into paying for a long time. I seldom see a contract that looks so good that I cant turn it down in comparison.
    You say you always go contract free if you can? Let's say that maybe you are a reseller. You might think having no contract is the best way for you, because if your customer cancels you can cancel. But what if that is already built into the reseller program and a contract could offer something like, a hefty discount starting today in exchange for a contract commitment to reach a certain revenue goal within a determined amount of time? And maybe even special perks when goals are met, like a FREE 1st month on your next server?? Don't shut the door on contracts. If negotiated properly, they can be to your advantage.
    Shawn Bray
    Pinellas Hosting - www.pinellashosting.com
    Dedicated Servers | Collocation | Webhosting | Data Backup | Domain Registration

  22. #22
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    i think you missed one option:
    3) Monthly - Lower price

  23. #23
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    Quote Originally Posted by sbray View Post
    You say you always go contract free if you can? Let's say that maybe you are a reseller. You might think having no contract is the best way for you, because if your customer cancels you can cancel. But what if that is already built into the reseller program and a contract could offer something like, a hefty discount starting today in exchange for a contract commitment to reach a certain revenue goal within a determined amount of time? And maybe even special perks when goals are met, like a FREE 1st month on your next server?? Don't shut the door on contracts. If negotiated properly, they can be to your advantage.
    That's really not necessary IMO, most dedicated reseller programs with monthly terms just offer their discounts based on the total number of servers you have rented, and break that down into discount tiers.

    I think there's merit for a large scale client to pursue additional concessions with a contract if they feel its warranted, but that's usually going to be a pretty small group anyway.

    With monthly you're able to offer a customer or reseller a better deal sooner and with less delay to realize those benefits. Obviously if you have an inefficient process for setting up new clients/servers, or significant cost of acquisition, etc it could be a potential risk if they terminate their account before you recoup costs, but again you're providing more value this way (which hopefully translates to lower churn and happier clients).

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