We are forced to raise prices for NEW server orders by almost 2 times due to changes in conditions in the Data Center partners
Greetings Usually, companies use their blogs for posting promotions and luring new customers, in this case we are the opposite. Unfortunately, we are forced to inform you of the most unpleasant news, you can, in fact, contemplate it in the title, and the essence itself will be revealed in a post. Yes, and so the crisis, yes, the demand will fall even more, yes, we know that Hetzner is cheaper, but we have never tried and will not be able to surpass the low-cost in the premium level segment, it is simply impossible, we understand this and not sorry The reasons and details of this difficult decision under a cat.
Immediately make a reservation - without panic, we will not change the prices for already rented servers, we are only talking about NEW orders!
')
For a long time, we have been trying to do our job flawlessly and efficiently, offering services only in data centers (data centers) of premium level. Back in 2012, I realized that cooperation with low-cost sites or even Data Centers of the average level (this level is far from being determined by the Tier of the data center or the Tier of its uplinks) sooner or later leads to big problems, this is the conclusion that was made result of cooperation until 2012 with lower level sites. After all, the most valuable thing we have is time, and its consumption increases markedly when logistics is not magic. For me, a premium-level data center is not necessarily a Tier IV data center, but a data center with the right logistics, an optimal price / quality / efficiency ratio for solving problems, which is essentially what is required for the majority of adequate subscribers. In 2012, we found such a partner and literally in 1.5 years of work, confessing the right approach to business, grew from a small hosting provider to a provider with 1000+ servers, whose subscribers generate 256+ Gbit / s of traffic to the Internet only on one of our sites!
But now it's not about that, about the prices of services. The market of 2012 was oversaturated with a low-cost segment and, as a result, selling servers in the data center at a higher level at higher prices was extremely difficult. It was very difficult to explain to people that quality costs money and is worth overpaying for it. Many people just had to realize this in practice. Some companies began to carry out dishonest dumping, trying to get a large part of the market, in runet providers, alas, were not limited to dumping, but used more dirty methods. In this regard, we tried to provide our subscribers with the lowest prices, so that as many people as possible could evaluate the services of a completely different level. The partner company, owner of the EvoSwitch data center in the Netherlands, in which we provide services, apparently also observed the need to stimulate the market and not long before the end of 2012, partly to the detriment of its partners who already had signed long-term contracts with the old price policy , I could not think of anything better and nearly brought down the cost of services as part of the pre-Christmas sale almost 2 times. We had to react appropriately and also lower prices, although besides the advantages of this solution, which of course appeared, there were many drawbacks.
In contrast to the partner company, we realized that the margin drops dramatically, primarily at the partner company (after all, electricity prices and depreciation are the same and even increase due to inflation and crises, and for some positions, it was easy to calculate that they just went into the minus), but the leadership of our partner apparently looked at the momentum, and not at the margin. We also got, because it was necessary to sell 2 times more to provide the same level of remuneration for the work for our employees. At the same time, it was necessary to keep the same decent level of service with the increased load, as there were more customers per employee now.
We even managed to get customers of the low-cost segment, who previously didn’t look at us because of the higher price. But at what cost? The level of support for data center engineers has noticeably decreased due to the increased load on them, and the timing of equipment provision has sometimes been delayed. In order to continue to receive the operational level of service, we had to ask the management about the allocation of personal remote “workers”, since the SLA was frankly violated, but it didn’t suit us radically. We were not to blame for the situation. Moreover, I frankly asked the management to reconsider their approach to such sales, since in my opinion it should be different in the bark than the sale of underwear at the market. Of course, that we, as a client partner, using only about 1% of all servers in the data center (about 600 out of 60,000 at the time), did not have the proper influence on this policy. Despite the fact that the data center is automated and as efficient as possible in terms of human time, problems happen and they just need to be promptly addressed. Of course, a solution was found for our subscribers, but the direct subscribers of the data center, alas, suffered a little, because the staff of Data Center could not increase it in spite of the dynamic growth of the customer base.
Completion of the action was postponed month after month, the growth of turnover was extremely good, apparently it slightly eclipsed the mind, and it essentially turned into a permanent offer. As a result, many people are accustomed to this, even those subscribers who were previously satisfied with the higher price now would not like to order servers for much less favorable conditions. And now to cancel this offer was extremely difficult.
Apparently, having finally started counting margins, Data Center changed its approach last week, completing a nearly 2-year sale and notifying us of the change in conditions. The prices were not just increased, but in fact the conditions of 2012 were returned, with only minor changes towards cheaper customization (it will now be possible to order the same IPMI, hardware load balancer or firewall, change the bandwidth for standard servers, and not custom built for quite a good price). The only thing is that they were late with this offer exactly for 2 years, since they didn’t get the right one (we asked for it a long time ago), we have already introduced this service and in a better form on our other site in the Netherlands in the Data Center Switch a few months ago only much cheaper. Nevertheless, the increase in prices, in contrast to the dumping reduction, is not an error; finally, it will be possible to start working according to a more sensible scheme and further improve the quality. I am sure that the new prices will help to “improve” the market and very soon there will be very interesting additional services for lovers of high-quality services.
For our subscribers, due to the existing small reserves, we decided to give a little time for a “smooth transition”, and not just put before the fact, for the next 24 hours you have the opportunity to place an order for a dedicated server with instant activation through our website for the old favorable conditions:
http://ua-hosting.com.ua/nl-servers.html - you can order and receive servers instantly here!
NL - Intel Dual-Core G850 / 4GB DDR3 / 4x1TB SATA2 / 100Mbps Unmetered (4 only!) 59.00 / month (instead of 104 per month)
NL - Intel Quad-Core Xeon X3440 / 8GB DDR3 / 2x1TB SATA2 / 100Mbps Unmetered (only 4!) 69.00 / month (instead of 150 per month)
NL - Intel Xeon E3-1230 / 8GB DDR3 / 4x1TB SATA2 / 100Mbps Unmetered (18 Instant) 89.00 / month (instead of 150 per month)
NL - Intel Xeon E3-1230 / 16GB DDR3 / 4x1TB SATA2 / 100Mbps Unmetered (only 2!) 104.00 / month (instead of 165 per month)
There are few servers left and the sale will be relevant anyway for no more than 24 hours from the moment of publication, do not be late to receive your dedicated server at a good price! Even if you are just thinking about your project and while the server is not needed - it's time to order, because saving in the long term is significant, and having an “idle” dedicated server will encourage you to work on your project, will serve as an additional motivation for the soonest implementation :)
Immediately make a reservation - without panic, we will not change the prices for already rented servers, we are only talking about NEW orders!
')
For a long time, we have been trying to do our job flawlessly and efficiently, offering services only in data centers (data centers) of premium level. Back in 2012, I realized that cooperation with low-cost sites or even Data Centers of the average level (this level is far from being determined by the Tier of the data center or the Tier of its uplinks) sooner or later leads to big problems, this is the conclusion that was made result of cooperation until 2012 with lower level sites. After all, the most valuable thing we have is time, and its consumption increases markedly when logistics is not magic. For me, a premium-level data center is not necessarily a Tier IV data center, but a data center with the right logistics, an optimal price / quality / efficiency ratio for solving problems, which is essentially what is required for the majority of adequate subscribers. In 2012, we found such a partner and literally in 1.5 years of work, confessing the right approach to business, grew from a small hosting provider to a provider with 1000+ servers, whose subscribers generate 256+ Gbit / s of traffic to the Internet only on one of our sites!
But now it's not about that, about the prices of services. The market of 2012 was oversaturated with a low-cost segment and, as a result, selling servers in the data center at a higher level at higher prices was extremely difficult. It was very difficult to explain to people that quality costs money and is worth overpaying for it. Many people just had to realize this in practice. Some companies began to carry out dishonest dumping, trying to get a large part of the market, in runet providers, alas, were not limited to dumping, but used more dirty methods. In this regard, we tried to provide our subscribers with the lowest prices, so that as many people as possible could evaluate the services of a completely different level. The partner company, owner of the EvoSwitch data center in the Netherlands, in which we provide services, apparently also observed the need to stimulate the market and not long before the end of 2012, partly to the detriment of its partners who already had signed long-term contracts with the old price policy , I could not think of anything better and nearly brought down the cost of services as part of the pre-Christmas sale almost 2 times. We had to react appropriately and also lower prices, although besides the advantages of this solution, which of course appeared, there were many drawbacks.
In contrast to the partner company, we realized that the margin drops dramatically, primarily at the partner company (after all, electricity prices and depreciation are the same and even increase due to inflation and crises, and for some positions, it was easy to calculate that they just went into the minus), but the leadership of our partner apparently looked at the momentum, and not at the margin. We also got, because it was necessary to sell 2 times more to provide the same level of remuneration for the work for our employees. At the same time, it was necessary to keep the same decent level of service with the increased load, as there were more customers per employee now.
We even managed to get customers of the low-cost segment, who previously didn’t look at us because of the higher price. But at what cost? The level of support for data center engineers has noticeably decreased due to the increased load on them, and the timing of equipment provision has sometimes been delayed. In order to continue to receive the operational level of service, we had to ask the management about the allocation of personal remote “workers”, since the SLA was frankly violated, but it didn’t suit us radically. We were not to blame for the situation. Moreover, I frankly asked the management to reconsider their approach to such sales, since in my opinion it should be different in the bark than the sale of underwear at the market. Of course, that we, as a client partner, using only about 1% of all servers in the data center (about 600 out of 60,000 at the time), did not have the proper influence on this policy. Despite the fact that the data center is automated and as efficient as possible in terms of human time, problems happen and they just need to be promptly addressed. Of course, a solution was found for our subscribers, but the direct subscribers of the data center, alas, suffered a little, because the staff of Data Center could not increase it in spite of the dynamic growth of the customer base.
Completion of the action was postponed month after month, the growth of turnover was extremely good, apparently it slightly eclipsed the mind, and it essentially turned into a permanent offer. As a result, many people are accustomed to this, even those subscribers who were previously satisfied with the higher price now would not like to order servers for much less favorable conditions. And now to cancel this offer was extremely difficult.
Apparently, having finally started counting margins, Data Center changed its approach last week, completing a nearly 2-year sale and notifying us of the change in conditions. The prices were not just increased, but in fact the conditions of 2012 were returned, with only minor changes towards cheaper customization (it will now be possible to order the same IPMI, hardware load balancer or firewall, change the bandwidth for standard servers, and not custom built for quite a good price). The only thing is that they were late with this offer exactly for 2 years, since they didn’t get the right one (we asked for it a long time ago), we have already introduced this service and in a better form on our other site in the Netherlands in the Data Center Switch a few months ago only much cheaper. Nevertheless, the increase in prices, in contrast to the dumping reduction, is not an error; finally, it will be possible to start working according to a more sensible scheme and further improve the quality. I am sure that the new prices will help to “improve” the market and very soon there will be very interesting additional services for lovers of high-quality services.
For our subscribers, due to the existing small reserves, we decided to give a little time for a “smooth transition”, and not just put before the fact, for the next 24 hours you have the opportunity to place an order for a dedicated server with instant activation through our website for the old favorable conditions:
http://ua-hosting.com.ua/nl-servers.html - you can order and receive servers instantly here!
NL - Intel Dual-Core G850 / 4GB DDR3 / 4x1TB SATA2 / 100Mbps Unmetered (4 only!) 59.00 / month (instead of 104 per month)
NL - Intel Quad-Core Xeon X3440 / 8GB DDR3 / 2x1TB SATA2 / 100Mbps Unmetered (only 4!) 69.00 / month (instead of 150 per month)
NL - Intel Xeon E3-1230 / 8GB DDR3 / 4x1TB SATA2 / 100Mbps Unmetered (18 Instant) 89.00 / month (instead of 150 per month)
NL - Intel Xeon E3-1230 / 16GB DDR3 / 4x1TB SATA2 / 100Mbps Unmetered (only 2!) 104.00 / month (instead of 165 per month)
There are few servers left and the sale will be relevant anyway for no more than 24 hours from the moment of publication, do not be late to receive your dedicated server at a good price! Even if you are just thinking about your project and while the server is not needed - it's time to order, because saving in the long term is significant, and having an “idle” dedicated server will encourage you to work on your project, will serve as an additional motivation for the soonest implementation :)
Source: https://habr.com/ru/post/237749/
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