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08-08-2009, 07:53 PM #1Web Hosting Guru
- Join Date
- Mar 2002
- Posts
- 328
Hardware Amortization ...not based on government standered !!
When you buy hardware and then try to charge monthly to the cusotmer , in how many months do you want to recover the cost.
For example if the server is 1K ...what the monthly price do you want to charge.
In my case if the customer signs a 12 month contract, i will charge 100$ month on a 1K hardware (this does not include bw, colo, management etc)
But i see hosts charge 50$/Month for a 1 TB drive..when these drives are all most 100$ wholesale.
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08-09-2009, 12:20 AM #2Private Citizen
- Join Date
- Jan 2009
- Posts
- 3,878
Thats actually one thing I hate is the expensive addons for drives, when they are as cheap as they are. RAID cards I understand in most cases, they are not cheap for good ones.
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08-09-2009, 01:07 AM #3Web Hosting Master
- Join Date
- Aug 2009
- Location
- Orlando, FL
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- 1,063
That's how budget hosting companies make $$$. The planet has some of the lowest prices for a well-run large US shop. Not to say there aren't cheaper solutions just as good, but that is their MO.
If you need something basic, they have it CHEAP. However, the more you add-on and the more cost THEY incur, the more profit they are setup to make. Large hosting shops get hardware for dirt cheap. They are making large profits on the add-ons.
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08-09-2009, 01:11 AM #4Private Citizen
- Join Date
- Jan 2009
- Posts
- 3,878
I think that hurts the long run relationship, at least with us anyway. If hardware addons were cheaper we would just keep a business model leasing equipment from data centers. However the long term goal is to just lease data center space with our own equipment. At least that's how it is with us, I am sure many clients are not hosting niche providers. But rather SMB's who need a server for their apps, etc. Granted I am just speculating...
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