Remeber the Good Ol' Days?
- Thread starter Macrolect
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PebbleHost
High performance, consistent uptime and fast support. Minecraft hosting that just works.
Oh how I wish we could go back to that..
Problem is people don't understand that even a Minecraft host has real expenses. It's possible to run a host at $3/GB yes, but the margins are so small (and forget about hiring any employees for a long time if you want to pay them a fair wage). I don't think some people really understand that haha.</rant>
$6/GB is still pretty cheap for a good service. Obviously, back then the market wasn't flooded with 'businesses' that operated simply to put others out of business. There isn't really any business logic in this market with the pricing demonstrated here. The profit margins are minimal. I see how people offer $3/GB with $60/mo 128GB servers from OVH's legacy lines (thanks to MikeA) and overload them, with $324 profit per 128GB, $2.5 profit per GB that would be. It's pretty bad and unsustainable, to be honest with you. Legitimate companies would find it hard to operate like that and cover all expenditure.
Premium hosts charge 10x more than $60/mo for 128GB servers, and premium hosts don't overload that much, we still typically do a 32GB per server setup with a powerful CPU to offer maximum performance. We have a higher profit per GB, yes, but we also have to sustain other expenses to offer a premium service. It would be unreasonable to ask a decent provider to stoop to those prices.
People are just unwilling to pay. $6/GB is extremely cheap considering what you make from donations. That's 6 chocolate bars a month. Keep in mind the host *is* your backbone, the reason why players enjoy the experience, the reason why servers still make income and the actual mainframe of your server, the work behind the scenes from logging in to logging out.
Premium hosts charge 10x more than $60/mo for 128GB servers, and premium hosts don't overload that much, we still typically do a 32GB per server setup with a powerful CPU to offer maximum performance. We have a higher profit per GB, yes, but we also have to sustain other expenses to offer a premium service. It would be unreasonable to ask a decent provider to stoop to those prices.
People are just unwilling to pay. $6/GB is extremely cheap considering what you make from donations. That's 6 chocolate bars a month. Keep in mind the host *is* your backbone, the reason why players enjoy the experience, the reason why servers still make income and the actual mainframe of your server, the work behind the scenes from logging in to logging out.
The discount form OVH is only for 3 months. It's not a lifetime discount. Also I don't use the 128GB E5-1620v2 discount servers and I still offer $3/GB with great stability and performance.
Since you mention profit, for example I could charge more, but why? I like profit, but I don't need to pay multiple employees nor do I need to buy myself a nice new car.
no means to sound rude, I just don't like you mentioning me in situations that hint that my services are bad in some way, when all of my clients are happy.
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Lmao! If it works, then why not xD
I felt like mentioning you in that sentence was confusing. I only referred to you as the person who told me those lines exist - I didn't know they did. It was put into a confusing context, though. That didn't refer to you in any other way.
It's hard for you to charge more. You'd have troubles after $4/GB probably. Larger businesses do pay multiple employees and want a nice new car, I want a nice new car even, not sure if you're serious when you say you don't. For a lot of businesses, these costs are unsustainable.
Make that "you will" have issues charging more than ~$4/month. I remembered when I used being able to get some progress out of my a "older" startups compared my past two newer ones (despite heavy improvements in my latest try).
The way I see things going on that they don't have any (or at least very little) regards to qualities. As long as a host can make it runs then they "thinks" that enough to warrant the service being worth it.
"Why pay x3-x5 amount when works just "fine" at the ~$3/GB?"
The problem is that they don't understand limitations of such operations such as...
limited/no improvement budgets, reactive/sub par "proactive" management, and/or the like are the common grounds such operations are most likely based.
Either different directions need to taken to suppress the usual "Multicraft+hardware" servicing to make the increased pricing deems more worthy. Or your may be just better off hosting in a different manner completely (Virtualization for instance).
I ride motorcycles, much cheaper and more fun, you should look at them
This isn't true. I have plenty of funds put back for expansion (even in my own hardware if I wanted), along with a very large credit line (from multiple sources) to support anything crazy if I ever wanted to do something, even though it wouldn't make sense.
Each company is different though, yeah :- )
What I said and said is true as it doesn't apply to every single company yes.
What's your probably able to do (and I would admit some others I bet does this as well) is creating loss lead product(s) so other products can "back it up". Sometimes this works because when your clients move on to "larger investments" (for example dedis and/or VPSes) it pays off to provide them the cheaper stuffs.
However cheaping out overall will have it side effects in the long run. I means in the fashion as in GGservers and the like as they have little places to spread their expenses around.
I understand what you're saying but that's not what I do either. None of my services create a loss though. The main reason GGServers has such as bad rep is A.) Their support is extremely lacking B.) They have bad monitoring in place with weekly downtime on individual systems.
I wouldn't consider GGServers as a service meant for overall growth and 'great service' though, heh.
Exactly while I had a "rough drive" the last few times, it doesn't necessarily make it a "bad thing" either.
It just means those who want to get Minecraft hosting business on the "roll" will have to "lift more weight" than ever before. Just look at how far some of the other hosting sectors are going at changing things around.
Competition is good, but Minecraft is saturated. How can someone be expected to innovate if his profit is only 0.1$ per GB he sells.
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