Why is OVH so cheap?

Gecko

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I've been looking at some different web hosting services and have noticed that OVH seems like it's a little too cheap in comparison to some of the other big hosting providers. I have never used them but looking from the outside it has me curious about their pricing.

So, why is OVH so cheap?
 

AlbaHost

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I've been looking at some different web hosting services and have noticed that OVH seems like it's a little too cheap in comparison to some of the other big hosting providers. I have never used them but looking from the outside it has me curious about their pricing.

So, why is OVH so cheap?
It's easy to give away the world when you're getting $300,000,000 from banks & French government subsidies.
 

HostXNow

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Well OVH is increasing costs to UK customers and charging an additional 20%. So not cheap anymore.
 

eva2000

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Why are they increasing prices to the UK customers?
one of my Centmin Mod users in UK using OVH got this email
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
 

Gecko

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Gecko
I didn't realize that the UK leaving the EU had any kind of noticeable impact on the pricing of things like that. Many of us Americans don't realize the things that happen on the other side of the pond and the impact they have. I guess I need to check out the news more often. ;)
 

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gagah

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It's what happens when you don't have the immediate need to make a profit by having strong investment support. Kind of like Amazon, really. Just enough revenue to stay afloat and a little bit of bonus, but you get the ability to crush your competitors. But for OVH case, they seem to have the worst marketing team in the world so average people doesn't know about them, and now they're starting to increase their price. I mean if you think they're cheap now, kimsufi used to sell their atom powered dedis for 2.99 euros :D
 

Gecko

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Gecko
Maybe they need to fire their marketing team and get some people who know what they are doing. Just as long as they keep their prices down because I might use them at some point in the future. :vteen:
 

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Well they're french, so i don't think their marketing's gonna improved soon. :rolleyes2: but their price will definitely gonna increase though. You know it's pretty bad when digitalocean is more popular than you when you're selling dedis and they're selling VPS. just the cost alone...:think:
 

Gecko

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Well they're french, so i don't think their marketing's gonna improved soon. :rolleyes2:
Good one, that made me laugh! :clap:

but their price will definitely gonna increase though.
Yeah, all the cheap places will usually do that at some point. It would be nice if they keep them cheap for a while or at least till I decide if I want to use them or not.
 

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OVH has many clients in France also they are biggest in their country, they provide cheaper service than other but thats is their trick to get more clients and maybe one day everything will be changed but for now they will continue with it.
 

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AlphaNine Vini

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If a company get a funding from a organisation or an investor . They try to attract maximum customer to increase their profits and expenses and reach their break even.
 

CertaHosting

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OVH are a very big company and have been able to reduce costs over time.

There are good and bad reviews about OVH but i suppose this is something that you get with a company of this size
 

VirtuBox

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OVH prices are not related to the company size. Other companies like Godaddy, Bluehost or Hostgator are at least 10x more expensive, for outdated hardware and without unmetered bandwidth.

The main difference is OVH is a Iaas (Infrastructure as a service) so they only provide unmanaged servers, and they do not have any affiliate program, when several other providers seems to be better on marketing than on service.
 
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