OVH Dedicated Server Price Increase by 20%

HostXNow

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What do you think of this email that I received earlier this morning regarding OVH increasing the cost of their servers by 20%? Only affects UK customers at the moment, but could well apply to everyone soon.

Dear customer,

At OVH we are committed to remaining competitive in both our prices and product ranges. While we have postponed action for as long as possible, economic changes following the Brexit decision have forced us to re-evaluate our pricing.

Back in June the UK decided to leave the European Union which caused the UK economy to rock and weakened the British pound against the Euro/Dollar. This impacted many businesses across the UK and in OVH's case it triggered a price increase from our suppliers which we have absorbed over the past few months.

In response, OVH has had to carefully review its pricing structure across certain product ranges. As expected, following our in-depth review we have had to increase our Dedicated Server prices by 20%. We are in the process of updating our website to reflect this change today (Thursday the 15th of December). At the moment the new pricing only affects new customers and new orders. In contrast, as a valued existing customer, these changes will not be applied to your existing servers until your 15th of January 2017 invoice.

Thank you for your understanding and continued trust in OVH.

Hiren Parekh,

Director, Sales & Marketing

OVH UK
 

LJSHost

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Who knows what they up to really and the true reasoning behind the decision. One thing is for sure 20% on the large amount of customers they have will be huge revenue boost.
 

Colombiawebs

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Good day

I am an ovh customer in the United States

At the moment, they have not reported increases in the prices of their dedicated servers

I hope this does not happen, because its dedicated servers are powerful and with great performance.

Blessings
 

ForwardWeb

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What do you think of this email that I received earlier this morning regarding OVH increasing the cost of their servers by 20%? Only affects UK customers at the moment, but could well apply to everyone soon.
Where will their new pricing put them in comparison compared to their competitors?
 

HostXNow

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Good question. To be fair, attacks are causing more and more havoc these days, and because of this a lot of individuals and businesses choose OVH due to them having one of the best DDoS protected networks around and the fact they include the protection with their servers for the same price. Should OVH start bumping the prices up then I think their competition may start to offer just as good DDoS protection (or at least something to help prevent the silly small attacks above 2-10Gbps which what most providers offer), and competition could offer slightly lower pricing to gain new customers that way? OVH know their DDoS protection is one of the best around and so can get away with charging that extra 20%. I just think they need to be careful not to be too greedy or misleading by the bait and switch method only for them to increase the price later as that never goes down well.

They may increase their profit by adding the extra 20% and will no doubt lose many customers because of it, but that means they'll have better quality over quantity support-wise, which means they charge more for their services and have fewer support tickets to deal with. That, of course, means less staffing costs, and so it's a win-win for them either way. Again, I just think they need to be careful, e.g., they could have allowed existing providers not to pay the extra 20% and have it only apply to new customer's, but soon they'll be getting 20% extra from new and existing customers. That will rub many existing customers up the wrong way... if they went with OVH due to the low pricing in the first place.

They could be using Brexit as an excuse for all we know to try adding the 20% to see if it increases their profit/improves their response/resolution times to their support tickets. To be honest, why wouldn't they? Because that's one of the main things people complain about OVH is their support (mostly from users who are used to managed services). If the change goes well, they may do the same for other countries.

I guess time will tell.
 

SenseiSteve

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I think we all knew their pricing had to go up sooner or later, so this 20% increase really doesn't surprise me.
 

Skylarkhosting

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OVH is mostly milking money from their customers now and with this increase, I am sure it will make more..
 

JixHost

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Too bad I found their support to be non existent. The increase would be fine if support would increase in quality in my opinion.
 

VirtuBox

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Using dedicated servers with an IaaS means you have total control over your server. You have complete freedom, allowing you to reinstall when you need to, update when you want to, and modify and maintain your software as you see fit. Your success is the product of the synergy between the hardware of OVH and your software expertise. Additionally, this relationship guarantees the complete security of our customers' data.

As our products are aimed at customers who are their own SysAdmin, OVH does not have a software support staff, instead focusing on hardware support. This is to the customer's advantage, as we pass the savings on to you.

Problems?
Here are answers to our most frequently asked questions: http://docs.ovh.ca/en/

Source :
https://www.ovh.com/us/support/

The support is not bad, there is no support. But they are not saying they provide it.
 

cPanelHosting

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Depending on what you have with them it might be a fair price increase. DDoS attacks, hacking attempts, etc have been on an incline and stuff like that happens to be very costly. So, it might seem unfair to you but in the end it's just a matter of asking yourself "is the product worth it?"
 
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