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Thread: ' BULL or BEAR ' hosting price

  1. #1
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    ' BULL or BEAR ' hosting price

    As we know - 'Everything is more expensive than it used to be'

    Why hosting still cheap? Any hidden cost? or demand still high or ppl still looking for cheap product c/w good service? or ppl like to be cheated or too many competitors. or there are a lots of monkey prefer peanut than banana.

    Any comments

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    Good question.

    I believe the price of hosting will keep dropping due to the followings:

    1) Hardware is becoming cheaper and cheaper, and bigger/faster. How much a 120GB harddisk cost you now comparing with few years ago? Wait, do they even have 120GB harddisk few years ago?

    2) Competitor. The new web host need to slash price to gain new market, while the old web host..due to having established a group of old customers (hence the recurring income is already there), can afford to sell cheaper too.

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    One reason is that it has become quite easy to setup a hosting service. Even many kids or teenagers are running such hosting service. They don't need to make profits like a regular company needs to. So prices are very low. Many people are attracted to these low prices. Sometimes these hosting services disappear after a while. Then the people who signed up look for other services. But because they are used to paying such a low price, they keep looking for similar low prices.

    The more serious hosting companies do not necessarily compete on price. People don't understand that a company needs to make a profit to stay in business and provide better services. They will compare the higher prices of these companies against the very low prices offered by some other service and say that the company is overcharging.

    Another reason is people don't seem to care about quality these days. They just want the cheapest and expect a lot. When they don't get it, they start to complain. But really, what do you expect when paying such cheap prices?

    Hosting companies have also taken overselling to the extreme these days. Look at the large amounts of space offered by some companies these days. People are attracted to it as they think they are getting much more for their money.

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    Quote Originally Posted by limcs View Post
    Good question.

    I believe the price of hosting will keep dropping due to the followings:

    1) Hardware is becoming cheaper and cheaper, and bigger/faster. How much a 120GB harddisk cost you now comparing with few years ago? Wait, do they even have 120GB harddisk few years ago?

    2) Competitor. The new web host need to slash price to gain new market, while the old web host..due to having established a group of old customers (hence the recurring income is already there), can afford to sell cheaper too.
    1. Hard disk is cheaper . how about bandwidth?

    2. New player need to suffer for losing money in 2-3 years?

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    Quote Originally Posted by mylinear View Post
    One reason is that it has become quite easy to setup a hosting service. Even many kids or teenagers are running such hosting service. They don't need to make profits like a regular company needs to. So prices are very low. Many people are attracted to these low prices. Sometimes these hosting services disappear after a while. Then the people who signed up look for other services. But because they are used to paying such a low price, they keep looking for similar low prices.

    The more serious hosting companies do not necessarily compete on price. People don't understand that a company needs to make a profit to stay in business and provide better services. They will compare the higher prices of these companies against the very low prices offered by some other service and say that the company is overcharging.

    Another reason is people don't seem to care about quality these days. They just want the cheapest and expect a lot. When they don't get it, they start to complain. But really, what do you expect when paying such cheap prices?

    Hosting companies have also taken overselling to the extreme these days. Look at the large amounts of space offered by some companies these days. People are attracted to it as they think they are getting much more for their money.
    A good view. But how to educate ppl what to choose and where to buy?
    What we are looking now is “Easily accessible”. not bigger storage c/w small mbps ......

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    Quote Originally Posted by gaspersoul View Post
    A good view. But how to educate ppl what to choose and where to buy?
    What we are looking now is “Easily accessible”. not bigger storage c/w small mbps ......
    Well, I think people already know. But yet they still go for the cheapest things. It is like as if if they pay a bit extra than others, they are losing out on something. But you can always read about people getting the very cheap or free web hosting and they laer start complaining about it. I think these are mostly the individual users who have personal home pages etc. Maybe they think its ok if their site is down or their host disappears. They will just move to another cheap host later. I think companies don't follow this. They want reliable service etc and got the budget for it.

    About space / bandwidth, you can see last time you may get something like 100mb / 1gb or say 1gb / 10gb. Those were quite good ratios based on how many pages you have and how many visitors you expect etc. Nowadays you can sometimes see something like 100gb / 100gb or 500gb / 500gb. The ratio is changed to much lower. Because it seems like the space is cheaper now and the host knows you won't use it all anyway.

    People should look at their requirements and buy what is suitable for a reasonable price and get good product and service, not only buy the cheapest.

  7. #7
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    Hello,

    Although the cost per GB for HDD is cheaper but the RENTAL, SALARY, SECURITY etc is getting expensive. As for bandwidth, Malaysia is one of the most expensive bandwitdh provider (from my comparision with other country).

    However, consumers like to compare hosting package with teenagers hosting as mentioned by mylinear. Thus, good webhosting provider must cut down their prices to compete. Lower profit margin, lower service profit. means they also must cut down service cost.

    Normally, these outragoues plans are for students, personal websites etc. For company website and solution, premium webhosting still have their own niche market.

    Thank you,
    Fivio.com | Customize Solutions
    Webhosting - Dedicated Server - Managed Colocation

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    Premium webhosting packages from Malaysian companies are truly premium if compared to those in the States. Slicehost (google slicehost if you like to hear what people are saying about them) offers a 256MB of RAM VPS package for only USD20 a month, with no setup fee. Tell me if you can find a similar package from a Malaysian company. On top of that, I place more trust on slicehost on their capability to handle and maintain their servers and service better than Malaysian companies. No offense to people like fivio but I do not make any reservations for Exabytes

  9. #9
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    Please note that there are other factors involved before a comparison can be done on the price. Prices will differ based on the virtualization program used, whether a control panel is included, whether it is a commercial control panel or not, whether there is burstable RAM available, what CPU allocation is given, specifications of the hardware node, what badwidth providers are used, etc etc.

  10. #10
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    Nowadays the trend in Malaysia are looking cheap price for the web hosting.. for the new company they have to follow the market even the cost are high . But to educate people to do a research about the company is so hard..

    Comparing the price between malaysia and oversea , i think oversea have lower price than malaysian company..

  11. #11
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    Quote Originally Posted by Infinityx View Post
    Nowadays the trend in Malaysia are looking cheap price for the web hosting.. for the new company they have to follow the market even the cost are high . But to educate people to do a research about the company is so hard..

    Comparing the price between malaysia and oversea , i think oversea have lower price than malaysian company..
    ya..a lot of oversea webhosting company offer cheap price with huge space. but i think malaysian hosting company will go for this trend soon.
    MyExHost Solutions 2006-2008 http://www.myexhost.com
    5GB Space + 50GB Bandwidth + Domain = RM100/yr

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    Hello,

    Most malaysian webhosting company will go to this direction. Past 3 - 4 years ago, webhosting is considered very expensive. 10MB for RM 180 yearly.

    However, now you can get 10GB for just RM 200.

    Customers always say that HDD are cheaper now, but they fail to see the other direct cost is getting expensive. Bandwidth and salary are getting expensive. Moreover, Webhosting is a YEARLY CONTINUING SERVICE.

    You must pay a reflexology RM 50 per hour (and finish) for full body massage. But complain when paying RM 200 for 1GB YEARLY ?

    Is webhosting service already drop to this level of expertise ?

    Thank you,
    Fivio.com | Customize Solutions
    Webhosting - Dedicated Server - Managed Colocation

  13. #13
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    As you say, hard disk space is getting larger and cheaper, but that is not the only cost involved in hosting. Most hosts giving such large space are overselling. And overselling has been taken to the extreme nowadays. You can easily estimate a cost of a server and figure out that if the host really provides the large amount of space, they can't even cover the cost of the server.

    Quote Originally Posted by fivio View Post
    Is webhosting service already drop to this level of expertise ?
    In some cases, I think there is hardly any level of expertise. I guess you can charge very little if that is the case. IMO, the level and quality of service and support locally is way lower than overseas providers.

  14. #14
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    my tips..

    avoid web host offer too many add-on domain.
    data transfer -
    how many ppl can 'laypark' hahaha is it new word ?

    if you go for oversea hosting - u are facing problem in connection..hahaha

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