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  1. #1
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    Is the VPS market saturated?

    Hi,
    Do you think there are already enough Hosts in the VPS industry in particular and overall Hosting industry in general?
    Just wanted to know the experts' opinion, because I can see thousands and thousands of web hosting companies online.

  2. #2
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    I don't think so in general. There are far fewer VPS hosts than web hosts. There are also some more barriers to entry for a VPS host (extra costs and skills). Windows VPS hosting is also not as saturated as Windows shared. The general trend is towards VPS hosting and away from shared however so I would imagine that more VPS hosts will enter the market to meet the demand.

  3. #3
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    There are also some more barriers to entry for a VPS host (extra costs and skills).
    Can you explain?

  4. #4
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    Generally to get a vps host up and running you need a powerful server with dual core CPU, 4 HDD's, 8 GB of RAM etc. Some virtualization technology has licensing fees as well. Generally a VPS host will need to either lease or colocate the server. Shared hosts can just buy a reseller plan and start reselling someone's else service without any server costs.

    Shared hosts setup per month: As low as $20
    VPS hosts setup per month: between $200-$500 per month

  5. #5
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    There are number of VPS hosting providers available but what matters is the quality of service offered by the hosting providers. "Quality" service would help you to survive in these saturated market.
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  6. #6
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    Whilst there are a lot of providers out there, the market is relatively small in terms of there being only a few big players. The hosting industry in general is a very large and competitive sector, as described above almost anyone can 'setup' as a shared host; but saturated, I think not. With new innovations constantly being developed and launched the industry has plenty of room to grow now and long into the future in my view.

  7. #7
    After the launch of cloud hosting, virtual private servers are loosing importance. Clients move from software virtualization to hardware virtualization which ensures reliability over a software-based VPS.

  8. #8
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    There are far fewer VPS hosts than web hosts.
    Isn't that how it's supposed to be? We cannot conclude from it that there are not too many VPS providers out there. For that we would need an ideal VPShared ratio (how it is to be determined, I do not know), and the current VPShared ratio, which we do not actually know.

    Too much competition would drive prices down, and result in bankruptcies of the inefficient businesses or increasingly numerous buyouts and mergers. Do we see any of that?

    IMHO the danger in the VPS market is the hype (too many people are fast to suggest "go with a VPS", even though for many it's not really needed or even recommendable, and the "cool" factor. There may thus be a false or temporary high demand, leading to an unnatural size of the VPS market. There's also the danger of new cool toys for the boys breaking the market, you know, the airy cloudy stuff.

  9. #9
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    VPS vs Dedicated.

    But, can we say VPS is the next best thing to Dedicated?

  10. #10
    I do not know if you could say a VPS is the "next best thing" but what a VPS can do is virtualize your server as VPS; allow for easier management, it is scalable (up to the configuration of the server) and portable.

    Therefore VPS' are just another tool designed to provide a Client or Prospect what they need. I kind of relate it to a Pickup Truck or a Semi Truck. If I need a truck to haul small items around; I don't need a semi to do it. Although they both are trucks.

    John
    Last edited by ucwebhost; 10-06-2009 at 03:06 PM.
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  11. #11
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    The hosting market is saturated, and thats a good thing from a consumer point of view. We've seen prices come down from what they were a couple of years ago and quality has gone up (on average). You still have the teenager with $300 and too much free time starting a terrible VPS company stuff happening but its a lot less common than before. Quality comes at a price and most people understand that.

    Growth is still possible, but its often at the expense of another companies customer base as people naturally move from one kind of technology to another, such as shared hosting moving to VPS.

    There are new companies starting up and people are spending more time shopping online etc. That all translates into greater demand for hosting technologies in addition to the natural migration between low to high value.

    The quality hosts will take that new business away from the other hosts as time goes on, so I don't see saturation as a bad thing for companies offering great value.
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  12. #12
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    Quote Originally Posted by Generation Xeon View Post
    After the launch of cloud hosting, virtual private servers are loosing importance. Clients move from software virtualization to hardware virtualization which ensures reliability over a software-based VPS.
    Unfortunately the term 'cloud hosting' can mean many different things, and so its mostly a marketing term thrown around by everyone. If you're talking about Google style clouds with servers in every city on the planet, yeah, thats a big improvement for serving web pages but it sure isn't cheap and it ain't new either.
    Last edited by vpsville; 10-06-2009 at 03:50 PM.
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  13. #13
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    No market is over saturated. That would be like saying there are too many grocery stores in this world. You will always have people who prefer your host and not another. This works especially with local hosts. You may think that the tons of hosts that don't put their best efforts into this industry over-saturate the market. However, poor quality hosts just don't get customers.

  14. #14
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    I think its not saturated and the customers who is having the reseller hosting or premium hosting has got a tendency to go for a VPS, because there is no much price difference.

    I also think that some website will be running slow in VPS when compared to shared one . I know most of you will disagree with me. But I am in the technical field for more than 2 yrs and had come across with the similar situation. And I think it is because of limited resource availably in VPS. Anyway both as got its own advantage and the markets are not seems to be saturated :-)

  15. #15
    Quote Originally Posted by Nick Joyce View Post
    I think its not saturated and the customers who is having the reseller hosting or premium hosting has got a tendency to go for a VPS, because there is no much price difference.

    I also think that some website will be running slow in VPS when compared to shared one . I know most of you will disagree with me. But I am in the technical field for more than 2 yrs and had come across with the similar situation. And I think it is because of limited resource availably in VPS. Anyway both as got its own advantage and the markets are not seems to be saturated :-)
    Well, exceptions are everywhere. However, i definitely believe VPS is a better option over a shared. Infact, if you have a cloud hosting setup, there is nothing like it.

  16. #16
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    Not really, there seems to be a few bigger contenders but the little guy can still get in.

  17. #17
    Quote Originally Posted by HIG-Jerry View Post
    Not really, there seems to be a few bigger contenders but the little guy can still get in.
    If you don't like to pay much and your requirements are low...then yes

  18. #18
    Not really, still have room to grow, especially for the group of student who can't really afford to maintain their costly server. Unless they setup at home
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  19. #19
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    Thing I don't understand about VPS prices is sometimes its cheaper to just go get a $50 month server elsewhere.
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  20. #20
    It differs from one hosting company to another.

  21. #21
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    To me, what I'm quoting here is the typical case of someone copying what he read elsewhere without thinking.

    Quote Originally Posted by Generation Xeon View Post
    After the launch of cloud hosting, virtual private servers are loosing importance.
    What kind of cloud are you talking about here? If it's the type like Amazone EC2, then it's VERY expensive at Amazon, and I never head about a successful could company that is not Amazon. If you are talking about Google Apps type of cloud, well same: find me a company that is not google that has a lot of success doing this.

    As opposed to this, I saw few thread on slashdot where people are saying that Amazon is not worth the buck, and that other company offering "normal" VPS are both more reliable and cheap.

    Quote Originally Posted by Generation Xeon View Post
    Clients move from software virtualization to hardware virtualization which ensures reliability over a software-based VPS.
    What are you saying here? That hardware virtualization (eg: HVM mode of Xen, for example, or KVM) is faster than paravirtualization? Well, it's quite the opposite way in fact. Paravirt. is a lot faster, more reliable, and as much secured.

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  22. #22
    Personally, I think the cloud thing is at least some hype and that VPS hosting is a SMOKING hot product right now. from cheap $3.99 all the way to $150 per month for a 1/4 server, I think there is something for everyone.

  23. #23
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    I don't think there could ever be enough, I mean its always good if there's a lot of competition for this will result for hosting companies to keep improving their services in a much affordable price..

  24. #24
    Quote Originally Posted by gplhost View Post
    To me, what I'm quoting here is the typical case of someone copying what he read elsewhere without thinking.



    What kind of cloud are you talking about here? If it's the type like Amazone EC2, then it's VERY expensive at Amazon, and I never head about a successful could company that is not Amazon. If you are talking about Google Apps type of cloud, well same: find me a company that is not google that has a lot of success doing this.

    As opposed to this, I saw few thread on slashdot where people are saying that Amazon is not worth the buck, and that other company offering "normal" VPS are both more reliable and cheap.



    What are you saying here? That hardware virtualization (eg: HVM mode of Xen, for example, or KVM) is faster than paravirtualization? Well, it's quite the opposite way in fact. Paravirt. is a lot faster, more reliable, and as much secured.

    Thomas
    Ok, i am sure you must have mis-read with the one-liners.

    Cloud computing definitely relates to cloud servers that are setup with applogic's or Vsphere or any other cloud computing application. Although, the initial investment cost for the servers and application are high which of course the hosting provider needs to take care of, but if you provide the same specifications as a VPS, you will be able to provide the servers for a much lesser cost and offer more redundancy. How about taking a look at the following link :

    http://3tera.com/Cloud-computing/

    I am sure you'll definitely understand the restrictions and performance differences between a VPS or cloud-based Server. Not sure how you were tricked with one-liners. A hosting company never misses that...

  25. #25
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    Quote Originally Posted by Cape Dave View Post
    Personally, I think the cloud thing is at least some hype and that VPS hosting is a SMOKING hot product right now. from cheap $3.99 all the way to $150 per month for a 1/4 server, I think there is something for everyone.
    I agree, I think cloud is the future but VPS is the here and now.
    Last edited by HIG-Jerry; 10-15-2009 at 01:25 AM.

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