Does web hosting cost reduce over time?

bknights

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By cost, I mean the cost of hosting packages offered by hosting companies. I got this doubt because of the decreasing cost of the storage devices. What are your thoughts?
 

hostnesta

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The price reduces because of the cut-throat competition among hosts.
New comers try to under-cut, while established companies try to maintain the pace.

Web hosting is the highest competitive industry you will find online.
Same services, but each company tries to present its services as best as possible.

I don't think the price of hosting has anything to do with the cost of storage devices.
It has more to do with man-power.
 

LJSHost

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I agree with the comments above, thanks to a million people who believe the shared hosting business is a get rich quick scheme in addition to all the "kiddie hosts" the price has been driven down to little as $1 a month. Many of these providers having awful service and support.

The only way to make money with shared hosting anymore is with a large amount of customers.
 

amberhuntus

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I don't think that cost of will go down with the dercreasing cost of storage devices because cost of web hosting packages also depends upon a lot of factors other than storage devices.
 

UWH-David

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You will always have value hosting providers willing to offer dirt cheap pricing just to stay relevant but support suffers in the end.
 

R Langley

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It depends on exactly what you need. If you are constantly innovating then the cost should decrease. Its like going from renting servers to owning and colocating servers the end cost decreases over time, but in reality it just depends on your business plans.
 

ForwardWeb

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By cost, I mean the cost of hosting packages offered by hosting companies. I got this doubt because of the decreasing cost of the storage devices. What are your thoughts?
If you analyze the rates of the big players over the past 10 years, you will notice prices have been going up (which is to be expected). The general cost of goods and services always goes up. However you will always have the small time provider claiming to offer services for peanuts.
 

HostXNow

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What did 2TB of SATA diskspace cost 5 years ago? What does it cost now?

What did 4TB of SSD diskspace in HARDWARE RAID 10 cost 5 years ago? What does it cost now?

Same with CPU's. They manage to make newer faster ones making the older ones more affordable etc. Hardware and networks get cheaper and cheaper, but resources are squeezed more and more, either way, e.g providers may offer better specs but put more customers on the beefier servers because of it which is the same as less beefy servers with fewer customers on it.

The main thing that costs money is labour/admin time, and by offering so-called "unlimited disk space" for peanuts, it will eventually catch up with them (think EIG). That is the case when a large number of customer's abusing their service by uploading around 1TB of data for $1.99/month and who are probably the type of customer's submitting 50 tickets a month.

In the end, you get what you pay for, and while you might get a great offer to start with, it most likely will not last if the offer is too good to be true.
 

lingfart

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In my personal experience, it does not actually decrease. We are talking about web hosting cost here and not web hosting price. So, let's start. First of all, the more you create articles and different content, the more space you'll need. If you run out of space, you'll have to purchase additional storage space which will mean additional costs. Same with getting a lot of traffic over time. Lots of traffic has an effect on the speed of your website. You'll again need an upgrade from shared hosting to dedicated hosting which is much more expensive in order to speed up the loading of your site.

Also, when you initially sign up for a web host service, you are presented with a lot of discounts. But when you'll be renewing your plan, those discounts will all go away and you will be charged with a higher monthly fee as compared to when you initially signed up for their web hosting service. :(
 

fishmonk

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I think this depends on how the web hosting operates. Larger companies can afford to offer cheap rates to survive in this market. The trade-off would be the hardware. They might try to implement cost-cutting actions by using cheaper hardware or cutting down on headcount. In this case, support will most likely be affected as they cannot cope to handle the volume of enquiries or service requests.
 

Gettingmile

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The cost of storage doesn't by any means affect hosting cost.There is a popular saying that says: "When you are the only one in a field you make and decide all the rules & cost but immediately you are two or more everything changes"
The same also goes for hosting company, competitions are just increasing every day by all providers.I mean some hosting providers charges as low as 2$/month while some are very expensive. Many factors (such as offering low product and charging less, giving very high service and charging a crazy price, new start-ups charging low because they want to get more clients and move to the top, etc) affects the fluctuation of the price but competitions play a major role.
 

fishmonk

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fishmonk
Yes. This is pretty much accurate. Start-ups often charge low as they are new to the market and want to attack the market segment. However, this may not be sustainable for them so it's pretty common to see the rise and falls of web hosting companies.
Retention of customers is very important since the competition is very stiff.
 

Rapid2

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Its rare that the price of hosting will go down overtime. The only case this will normally happen is if your host offers to beat other hosting companies. Lot of hosts prices will go up overtime due to the increase in running costs for the company.
 

Soulwatcher

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Your hosting costs are only going to go up unless your website is stagnant and dead in the water. Think of it this way most budget web hosting provider plans will support 10~40 simultaneous visitors depending on what scripts that you're running. After that your website is going to start getting limited and visitors are going to get really unhappy. And more users means your going to need a VPS and even more users you're going to need a dedicated server.

P.S. Most web hosts also limit disk space as well. That's another problem your quickly are going to run into when you start making more and more content.
 

CertaHosting

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There will always be hosting companies that will offer rock bottem prices and there will always be someone thats cheaper than someone else.

I would say that the best way in this industry is not to concertante on price but quality of service. People value this. So will hosting cost reduce i would say not as to keep a service with a high level of quality and support comes at a cost to the DC or the host. Why would you want to pay less and get a bad service.

Always pay the little more and get quality i would say
 

24x7serverman

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To maintain the current customers and gaining the new one, web-hosting companies do reduce the cost over the time. It's totally depend on the type of service they are providing and current market cost. To run the business and keep the identity in field, companies need to apply discount coupon, some free domain registration and sometimes free hosting too. It's strategy of gaining the business and maintain the place in the market.

So it's fine if the web hosting company is reducing the cost over time.
 

martindrox

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You get what you pay for, don't think paying next to nothing will get you great service and support. Now New hosting companies will set their prices low so that they get clients, but maybe over time they'll increase the prices instead of letting them stay the same or even cheaper. I believe that's because they would need more income to keep the hosting service alive and running. Pay for your quality, what you want and if you can afford it or not!
 

Floxera-Jose

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High prices keep spammers away. 50 cents/month only bring troubles.
No one serious likes cheap and dirt imo.
 

vinaya

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I don't think so. I paid $9.88 for the first year. The renewal fees was $29.The package that I renewed for $29 in the second year cost me $38 in the third year. Since I am using the cheapest package, there is no other cheap options for me if I am staying with this host.
 

EzzyTech Networks

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Web hosting price isn't affected much by it's storage cost. There are lot's of other factors which fixes the hosting price. Price is actually determined by market competition.
 

MooMooHost

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Prices aren't exactly an indicator of quality , it's just an indicator of the profit margin one's company is.

Bigger companies charge higher prices, also because their advertising campaign is a lot higher than smaller companies, so the need to charge a higher price
 
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