What is a dedicated server setup fee?

bknights

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#1
I checked dedicated server offers and some are telling me that they will charge me a fee around $50 for setting up dedicated server. What that fee is? what will they setup for me? Can I do dedicated server setups for myself so that i don't need to pay this fee?
 

24x7CSM

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#3
Set up fees means server provisioning charges , Few of the providers to charge such fees in case you have customized server set up , its a server hardware , partitioning , installation charges as per your requirements. If you go with servers providers servers plan then set up charges are waved.
 

R Langley

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#4
I checked dedicated server offers and some are telling me that they will charge me a fee around $50 for setting up dedicated server. What that fee is? what will they setup for me? Can I do dedicated server setups for myself so that i don't need to pay this fee?
Provisioning a lot of folks who buy dedicated servers don't actually know there is an actual setup that needs to be done. Most providers who have there own hardware don't actually have these servers powered up before clients buy then or even racked. So setup includes racking the server, powering up the server, installed the required OS, partitioning the server as usually requested and setting up any monitoring add ones some providers charge x1 the MRC of the server for setup. Anyhow that is what providers usually charge setup fees for.
 

GswHosting

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#5
I checked dedicated server offers and some are telling me that they will charge me a fee around $50 for setting up dedicated server. What that fee is? what will they setup for me? Can I do dedicated server setups for myself so that i don't need to pay this fee?
You can only look for servers offers that don't have setup fee.
As all before me says setup fees can be in protective reason or they don't have that server running.
 

HostXNow

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#6
Managed Providers usually charge a setup fee. Most unmanaged providers don't charge any setup fees. If you see a setup fee for managed services, then there is not much to worry about as admin time can involve a lot of labour setting up the server, securing it, and optimising it, etc.

Any managed provider would be silly not to charge a setup fee. The only time where they might not charge a setup fee is because they are providing a server to you from an old customer of their's who no longer needs the server, and there isn't anything wrong with that either, providing the ex-customer hasn't killed the SSDs (not usually the case).
 
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#8
when you ordering dedicated servers you only pay price of dedicated servers. and you dont pay server setup price
 
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#9
Sometimes the setup fee is a one-time cost to offset the monthly cost of the server. We sometimes offer 'setup fees' as a way to keep your monthly recurring low as there's no real reason to pay for certain parts of a server forever. That way the customer has an option of paying a setup fee vs. a monthly fee for a hard drive upgrade for instance and keep a lower monthly cost.
 
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#10
DefaultUser
Excuse my lack of knowledge in this area but are you meaning that you will either pay a setup fee and lower monthly payments or no setup fee and higher monthly payment?

I don't know much about dedicated servers and the aspects.
 
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#11
That is correct. In some cases, the setup fees are just an option that lowers your monthly cost. For example, if you are renting a server for 2 years, it doesn't really make sense to pay $10/mo. ($240) for an 16GB RAM Upgrade. The memory stick could be worth $80, and you end up paying three times as much. So instead, we offer the option to pay only $80 one-time, and then you can save a considerable amount of money over the long term, especially if you keep the server even longer.

From our side, we leave potential revenue on the table, but we have the comfort of knowing the server is much more likely to be rented for a longer period of time which is a win for us.

Now of course there is an inherent cost to setting up a dedicated server. It's not like a VPS where a push of a button creates a virtual instance. Someone has to physically configure the server like you wanted it, an OS needs to be installed, hardware checked, licenses issued, etc. It takes time. So if a customer rents a server for just a month, especially in the low price arena, there's a good chance that most (if not all) of the first month's payment would have to go to cover that labor (on top of the inherent costs of putting a server online (HW price, power, space, bandwidth)). Some hosts prefer not bearing that risk and they charge a setup fee just to cover those costs. Otherwise they have to spread that risk over the sale price of all of the servers and have higher prices.

So the direct nature of setup fees varies from host to host, but the overall result is you have a lower cost over the long term.
 

bknights

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#13
Setup fees are most of the time a way to limit orders with short renew period. Because it's costs more for the provider and if you cancel your subscription the next month, your provider may not earn any anything.
Set up fees means server provisioning charges , Few of the providers to charge such fees in case you have customized server set up , its a server hardware , partitioning , installation charges as per your requirements. If you go with servers providers servers plan then set up charges are waved.
I want to try a dedicated server at OVH but a provider wanted to help me to buy there and setup dedicated server for me to use. He asked for setup fee, does this make sense?

I can buy a dedicated server and setup everything like I did on a VPS?
 
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#14
I checked dedicated server offers and some are telling me that they will charge me a fee around $50 for setting up dedicated server. What that fee is? what will they setup for me? Can I do dedicated server setups for myself so that i don't need to pay this fee?
This fee is used to cover the initial setup procedure for your server, also sometimes, this is to avoid the migration between old servers to new servers, or even to reduce the cancellation rate, considering a re-order would require again a setup fee. :)
 
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#16
Setup fee is good, it helps to avoid some monthly service hunters, who wants to spam or host some kind of badware.
 

HostYourNet-DR

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#17
Setup Fees are normally associated to custom server build or more complex that what they offer in a base package.

As these take extra time to set up.
They also can be used as a stop gap in case the reseller has a 30 day cancellation policy with the datacentre to help cover the costs.
 

racksandcloud

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#18
Few of Dedicated server providers charge setup fee for the dedicated server, few of them charge if you have selected only special custom configurations or upgrades. This cost is for provisioning the dedicated server or adding devices like RAID Card and its a one time fee.
 
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