Except the fact that the first 2 want to earn more money ...
There is always difference @ the hardware/network level.
There is difference between SSD type . There are SSD which have the same IO of HDD (Currently don't have the time to go further but you can check this out
I have to agree with CyberHour. Products advertised a certain price is all just marketing. It's what your buying at the technical which is important.
I would never buy any hosting product without asking the provider what hardware and software was powering it regardless of price, if they fail to provide a good answer I would not buy from them.
Prices do have a wide range for hosting services, some expense can be bad some cheap can be very good. It all depends on the provider.
For me a fair price for a hosting account is around $5 per month
Lowend VPS $20 (depending on backend)
Linode and DigitalOcean are completely unmanaged and need to be configured and ran all by yourself. HostGator and others offer fully managed VPS, meaning they will help you with support questions and other related things (make sure to check their policy as some are limited to certain distros and control panel) but that is usually why you see the huge difference. Linode and DigitalOcean are more self-managed and developer oriented, although you can make your Linode managed for an extra fee a month. They do have a pretty good service.
Apart of the Managed and UN-Managed marketing gimmick that is being applied, there is little or no difference is the products to justify the pricing.
When you compare two providers, they offer basically the same specs but their prices are quite different.
It takes more than the knowledge of an end user to be able to justify why one provider is better than the other.
You must have actually used and tested the services to be able to justify the prices, on aspects such as connectivity, upload/download speed, Hardware quality...
What I will suggest is to always try and get others opinion about a particular provider such as reviews, rather than be moved by their pricing.
Higher pricing does not necessarily mean high quality or better services.
In my opinion the support quality matters the price mainly as now a days the hardware used is almost the same by most of the providers. Also the additional features provided should be checked as well like Phone call support for emergency reboot, Remote Reboot facility, Remote console / KVM console facility , Pure SSD and other Hardware facility etc matters the most.
In this busy world no one cares to spend time to check and confirm the backend items like Server hardware specification, Data center facilities like which Tier they belong to etc and most of the customers are unware of those still. And hence the plans will have no such mention. People know SSD drives are better than HDD and hence they put the name SSD Drive and want to get more traffic.
I urge to customers to have a thorough check on the technical specification if they are buying a VPS / Dedicated servers and compare and take enough time to decide things.
I have to say, I am probably the farthest from an "expert" when it comes to hosting. Most of you are far more knowledgable than me about it. That being said, I have made my hosting decision(s) based on two observations:
1. Availability - I needed hosting, and I saw an ad. In this case I bought mostly based on price and cared nothing else about it.
2. The salesperson / owner - I've bought hosting from one person over another simply because they answered my calls, questions, and were nice. In that instance, I didn't care about anything else.
This does reflect wide price variation on VPS products, however firms that are on the higher side of the curve are playing a dangerous game.
Their are many hosting providers and it's easy to price yourself out of the market regardless of how great the firm or support is.
In short, you usually get what you pay for! If it looks too good to be true, it probably is.
If you are interested in a provider but unsure why their service is cheaper or more expensive than it should be, then just ask the provider to confirm things. Do this with several different providers, so you get a better idea of who offers the best service overall, but more importantly meet your requirements within your budget.
I think the real reason why some hosts are more expensive than others is simply because they can afford to wait for someone to pay more. Also, websites like Hostgator and GoDaddy are so popular that people are more likely to buy more expensive hosting plans just because of their popularity.
You get an SLA with the expensive ones (usually). Useful for critical operations or for enterprise uses. You can't really expect much from cheap. When they work they're a great value for your money but when they don't, a lot of them don't offer the same level of support those with "expensive" packages offer.
Some webhosting plans are more economical while other web hosting plans are expensive as there are different webhosting providers. There arise a difference in the cost of web hosting plans as there are various factors like the specification of servers, the level of support, features and addons, and geo-location of the web host. Hence web hosting plans are priced at different costing.
The hardware and network backbone is a reason but also another main reason is a brand. The hosting companies who are well settle, their hosting cost is higher, even though there are so many hosting providers their hardware is also good and performance too, but they are small company, hence to attract customers they keep lower cost and its true fact.
It's all up to the marketing trend and business plan they have setup when they initially started their business, you will find many great shared hosting providers offering almost the cheapest hosting but charging way more than other for dedicated servers for instance, i guess simply dedicated servers is NOT their field !..
Also you may look into it this way, if you get a lot of happy shared hosting clients, eventually they will upgrade to a dedicated server with YOU ONLY since they already began to trust your service despite how costly your dedicated servers are compared to others, i believe there are other providers also out there who provide really quality services a bit costly than others but jsut worth it !..
also dont rush to any KNOWN hosting name and sign up for their services just for no reason, word of advise, been there, tried that with 1&1 Shared Hosting, they are not that good at all, as we faced multiple downtimes and weird server migrations which should not take place with a reputable provider !...
Its all depends upon the features and hardware you purchase for hosting purposes, If you select shared web hosting it would be lowest cost. If you go with VPS or Dedicated server web hosting charge you the physical hardware measures that tay would provide you.
For example i had paid a UAE based web hosting company for this hardware for a moth.