Why some web hosting services are expensive?

Kaz Wolfe

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#1
I checked some VPS hosting offers, some are offering under $20 / mo for 4GB of RAM while others are offering around $40 / mo. What made this difference? or they are competing against each other? Any thoughts?
 
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#2
The price depend on "how much you want to oversell your node" (how many users you put on a server)....

and also the virtualization technologies.. KVM vps usualy cost more than openVZ because your resources are dedicated with KVM.
 

VirtuBox

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#3
I checked some VPS hosting offers, some are offering under $20 / mo for 4GB of RAM while others are offering around $40 / mo. What made this difference? or they are competing against each other? Any thoughts?
There are always difference between providers, but in web hosting, there is no relation between the price and the performance or the quality of service. Some providers are very expensive for a poor service, and some other are cheap but provide servers with good performances.
 
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#4
Well its depends on many reasons.
I will explain why we are not ad cheap as other.
1. To keep quality... when you are based on a small country as Panama, you can't afford top quality service charging 10usd per a year of hosting, it will not get the enough amount of money to pay for Internet, DataCenter Staff, Administrative Staff, new Hardware and many other expenses.
2. We do not oversale... Many companies do oversale of resources so they sale the same capacity 5 or up to 10 times, in order to provide the best quality of service we don't do over sale.
Thats the 2 main reason for us.
 

mobin

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#5
Though its supposed to be the quality of service/support should be directly proportional to the price, many times you cannot find it true. As said, you may find poor support from providers with a high price. But of course there are some premium providers with good service/support - you may choose them if you have enough budget and looking for reliable managed servers. If you want to choose some cheap servers and need good service, carefully review their feedback and choose.
 

hostens

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#6
Price depends on many factors and that is not only the technical specifications you see on the promotional website. Here are a few factors that usually are overlooked:

- the hardware, software, virtualization;
- customer support methods (chat, ticket system, phone) and availability 24/7.
- how involved is the support when you contact them. Are you only gonna get general answers or technical help as well;
- community/knowledgebase that creates great content about VPS, tutorials, articles that are useful;
- general development, how adaptive is the provider of global changes and trends in hosting market.
- etc.

Sometimes you may get exactly what you see - plain resources, without anything else for the fairly cheap price and that could be enough for your needs. But if you want more, usually it will cost more as well.
 

HostBastic

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#7
Price can be an indicator of quality, for example better support, real 24/7 support, decent hardware, non oversold server nodes, allocated resources, additional features, etcs... But like mentioned above price and quality are not always related, sometimes provides just jack up the prices for higher profits. Probably the most important factor in terms of price and quality would be the size of the provider, larger or mid sized providers tend to have more resourcers and can lower the price for such services, while smaller providers usually only have a couple of servers.
 

qbeststar

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#9
I checked some VPS hosting offers, some are offering under $20 / mo for 4GB of RAM while others are offering around $40 / mo. What made this difference? or they are competing against each other? Any thoughts?
Price for VPS it's not only RAM, you must check what CPU they use, what SSD drive's or HDD, did they use RAID , did they provide support for vps, BW
But if you need only RAM then you can try cheaper , but many company who give cheap price use OpenVZ and they limit ram resources
 

Nixtree

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#10
Many factors will be there and some time in Industry I have cases like they are simply have high rates just because they have enough clients which is having no issues which normally are some country limited or local limited hosting company and clients may be mostly unware of the Industry rates and standards.

But normally the below is the main things we need to consider

1. Extra Paid softwares provided for the customers like the below

Website Builder,
Easy Software Installer like Softacuilous/Fantastico,
Whether Litespeed is used or not
Whether extra security plugins are used

2. Extra amount is spend on the Server Hardware costs like

Raid 10
Backups server / Backup drive
More number of backups available

3. Quality of the Support like

24/7 real support staff is available
Lesser delay in Response in tickets
24/7 livechat is available or not

4. Datacenter on which they have their server and its Standards like Tier 3 Tier4 etc and goes on.

For VPS, normally I have see some give the below as free but in short all are almost paid but will have that fee covered in the rate for sure

free Blesta/whmcs
Free Domain
Free SSL
Managed Support

In short there should be some profit as it is business and the rate will be dependent on that.

It is simple business in the end :)
 

webhostuk

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#11
The main reason for higher cost is due to below reason:
1) High-quality hardware and infrastructure used to offer best quality hosting service.
2) Quality support available 24x7
3) uptime guarantee
4) They do not oversell resources just by overstuffing accounts for more profit.
So its pretty simple its quality over quantity that will cost you, if you are looking for into performance rather than just cost.
 
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