We are forced to increase prices for NEW server orders by almost 2 times due to changes in conditions in the partner data centers
Greetings! Typically, companies use their blogs to post promotions and attract new customers, in this case we are the other way around. Unfortunately, we are forced to give you unpleasant news, you can essentially see it in the headline, and the essence will be revealed in the post. Yes, and so the crisis, yes, demand will fall even more, yes, we know that Hetzner is cheaper, but we never tried and we can not surpass the low-cost in the premium segment, it is simply impossible, we do not understand this and this is not sorry The reasons and details of this difficult decision under the cut.
Immediately make a reservation - without panic, we will not change the prices of already rented servers, we are only talking about NEW orders!
For a long time, we have been trying to do our job flawlessly and efficiently, offering services only at premium data centers (data centers). Back in 2012, I realized that cooperation with low-cost sites or even mid-level Data Centers (this level is far from being determined by the Tier DPC or Tier uplinks), sooner or later leads to big problems, just such a conclusion was made in the result of cooperation until 2012 with lower-level sites. After all, the most valuable thing we have is time, and its consumption increases markedly when logistics is not magical. For me, a premium level data center is not necessarily a Tier IV data center, but a data center with the right logistics, the best price / quality / speed solution to problems, which is essentially what is required for most adequate subscribers.
But now it’s not about that, about the prices of services. The 2012 market was oversaturated with the low-cost segment and, as a result, it was extremely difficult to sell servers in a higher-level data center at higher prices. It was very difficult to explain to people that quality costs money and is worth overpaying for it. Many who simply needed to realize this in practice. Some companies began to conduct dishonest dumping, trying to get most of the market; in RuNet, providers, alas, were not limited to dumping, but also used more dirty methods. In this regard, we tried to provide our subscribers with the lowest prices so that as many people as possible could evaluate services of a completely different level. The partner company, the owner of the EvoSwitch data center in the Netherlands, in which we provide services, apparently she also observed the need to stimulate the market and not long before the end of 2012, partly to the detriment of her partners who already had signed long-term contracts with the old pricing policy, could not come up with anything better and brought down the cost of services as part of the New Year’s sale almost at 2 times. We had to react accordingly and also lower prices, although in addition to the advantages of this decision, which of course appeared, there were many disadvantages.
Unlike the partner company, we realized that the margin is falling dramatically, especially for the partner company (after all, electricity and depreciation prices are the same and even rise due to inflation and crises, and for some items, it was easy to calculate that they simply went negative), but the leadership of our partner apparently looked at the momentum, and not at the margin. We also got it, because it was necessary to sell 2 times more in order to ensure the same level of remuneration for work for our employees. At the same time, it was necessary to maintain the same decent level of service with an increased load, since now there were more customers per employee.
We managed to get even customers of the low-cost segment who had not looked at us before due to the higher price. But at what cost? The level of support for data center engineers has decreased markedly due to the increased load on them, and the timing of the provision of equipment has sometimes been delayed. In order to get the operational level of service as before, we had to ask the management to allocate personal remote “working hands”, since the SLA was frankly violated, but this did not suit us fundamentally. We were not to blame for the situation. Moreover, I frankly asked the management to reconsider their approach to conducting such sales, since, in my deep conviction, it should differ from the approach for selling shorts in the bazaar. Of course, we, as a client-partner, using only about 1% of all servers in the data center (about 600 out of 60,000 at that time) did not have the proper impact on this policy. Despite the fact that the data center is automated and as efficient as possible in terms of human time costs, problems do happen and they just need to be quickly addressed. Of course, a solution was found for our subscribers, but the direct subscribers of the data center alas suffered a little, since the staff of the Data Center, despite the dynamic growth of the client base, for obvious reasons, could not particularly increase.
The completion of the action was postponed month after month, the growth in turnover was extremely good, apparently this slightly overshadowed the mind, and it essentially turned into a permanent offer. As a result, many are accustomed to this, even those subscribers who were previously satisfied with a higher price, now would not really like to order servers for much less favorable conditions. And to cancel now this proposal has become extremely difficult.
Apparently finally starting to count margin, Data Center changed its approach last week, completing an almost 2-year sale and notifying us of a change in conditions. The prices were not just increased, but in fact the conditions of 2012 were returned, with only minor changes in the direction of cheaper customization (now it will be possible to order the same IPMI, hardware load balancer or firewall, change the channel bandwidth for standard servers, and not custom built at a pretty good price). The only thing is that they were late with this offer for exactly 2 years, since they didn’t get the right one (we asked for this a long time ago), we already introduced this service and in a better form on our other site in the Netherlands at the Switch Data Center a few months ago only much cheaper. However, the price increase unlike dumping, this is not a mistake, at last it will be possible to start working according to a more robust scheme and to further improve the quality. I am sure that the new prices will help to "improve" the market and very soon there will be very interesting additional services for lovers of high-quality services.
Due to the small reserves available for our subscribers, we decided to give a little time for a “smooth transition” rather than just confronting the fact that over the next 24 hours you have the opportunity to place an order for a dedicated server with instant activation through our website on the old favorable conditions:
http://ua-hosting.com.ua/nl-servers.html - you can order and get servers instantly here!
NL - Intel Dual-Core G850 / 4GB DDR3 / 4x1TB SATA2 / 100Mbps Unmetered (only 4!) 59.00 / month (instead of 104 per month)
NL - Intel Quad-Core Xeon X3440 / 8GB DDR3 / 2x1TB SATA2 / 100Mbps Unmetered (only 4 !) 69.00 / month (instead of 150 per month)
NL - Intel Xeon E3-1230 / 8GB DDR3 / 4x1TB SATA2 / 100Mbps Unmetered (18 instant) 89.00 / month (instead of 150 per month)
NL - Intel Xeon E3-1230 / 16GB DDR3 / 4x1TB SATA2 / 100Mbps Unmetered (only 2!) 104.00 / month (instead of 165 per month)
There are few Servers left and the sale will be relevant anyway for no more than 24 hours from the date of publication, do not be late to get your dedicated server at a good price! Even if you are just planning your project and while the server is not needed - it's time to order, because the savings in the long term are significant, and the presence of a “stand-by” dedicated server will stimulate you to work on your project, will serve as additional motivation for speedy implementation :)
Immediately make a reservation - without panic, we will not change the prices of already rented servers, we are only talking about NEW orders!
For a long time, we have been trying to do our job flawlessly and efficiently, offering services only at premium data centers (data centers). Back in 2012, I realized that cooperation with low-cost sites or even mid-level Data Centers (this level is far from being determined by the Tier DPC or Tier uplinks), sooner or later leads to big problems, just such a conclusion was made in the result of cooperation until 2012 with lower-level sites. After all, the most valuable thing we have is time, and its consumption increases markedly when logistics is not magical. For me, a premium level data center is not necessarily a Tier IV data center, but a data center with the right logistics, the best price / quality / speed solution to problems, which is essentially what is required for most adequate subscribers.
But now it’s not about that, about the prices of services. The 2012 market was oversaturated with the low-cost segment and, as a result, it was extremely difficult to sell servers in a higher-level data center at higher prices. It was very difficult to explain to people that quality costs money and is worth overpaying for it. Many who simply needed to realize this in practice. Some companies began to conduct dishonest dumping, trying to get most of the market; in RuNet, providers, alas, were not limited to dumping, but also used more dirty methods. In this regard, we tried to provide our subscribers with the lowest prices so that as many people as possible could evaluate services of a completely different level. The partner company, the owner of the EvoSwitch data center in the Netherlands, in which we provide services, apparently she also observed the need to stimulate the market and not long before the end of 2012, partly to the detriment of her partners who already had signed long-term contracts with the old pricing policy, could not come up with anything better and brought down the cost of services as part of the New Year’s sale almost at 2 times. We had to react accordingly and also lower prices, although in addition to the advantages of this decision, which of course appeared, there were many disadvantages.
Unlike the partner company, we realized that the margin is falling dramatically, especially for the partner company (after all, electricity and depreciation prices are the same and even rise due to inflation and crises, and for some items, it was easy to calculate that they simply went negative), but the leadership of our partner apparently looked at the momentum, and not at the margin. We also got it, because it was necessary to sell 2 times more in order to ensure the same level of remuneration for work for our employees. At the same time, it was necessary to maintain the same decent level of service with an increased load, since now there were more customers per employee.
We managed to get even customers of the low-cost segment who had not looked at us before due to the higher price. But at what cost? The level of support for data center engineers has decreased markedly due to the increased load on them, and the timing of the provision of equipment has sometimes been delayed. In order to get the operational level of service as before, we had to ask the management to allocate personal remote “working hands”, since the SLA was frankly violated, but this did not suit us fundamentally. We were not to blame for the situation. Moreover, I frankly asked the management to reconsider their approach to conducting such sales, since, in my deep conviction, it should differ from the approach for selling shorts in the bazaar. Of course, we, as a client-partner, using only about 1% of all servers in the data center (about 600 out of 60,000 at that time) did not have the proper impact on this policy. Despite the fact that the data center is automated and as efficient as possible in terms of human time costs, problems do happen and they just need to be quickly addressed. Of course, a solution was found for our subscribers, but the direct subscribers of the data center alas suffered a little, since the staff of the Data Center, despite the dynamic growth of the client base, for obvious reasons, could not particularly increase.
The completion of the action was postponed month after month, the growth in turnover was extremely good, apparently this slightly overshadowed the mind, and it essentially turned into a permanent offer. As a result, many are accustomed to this, even those subscribers who were previously satisfied with a higher price, now would not really like to order servers for much less favorable conditions. And to cancel now this proposal has become extremely difficult.
Apparently finally starting to count margin, Data Center changed its approach last week, completing an almost 2-year sale and notifying us of a change in conditions. The prices were not just increased, but in fact the conditions of 2012 were returned, with only minor changes in the direction of cheaper customization (now it will be possible to order the same IPMI, hardware load balancer or firewall, change the channel bandwidth for standard servers, and not custom built at a pretty good price). The only thing is that they were late with this offer for exactly 2 years, since they didn’t get the right one (we asked for this a long time ago), we already introduced this service and in a better form on our other site in the Netherlands at the Switch Data Center a few months ago only much cheaper. However, the price increase unlike dumping, this is not a mistake, at last it will be possible to start working according to a more robust scheme and to further improve the quality. I am sure that the new prices will help to "improve" the market and very soon there will be very interesting additional services for lovers of high-quality services.
Due to the small reserves available for our subscribers, we decided to give a little time for a “smooth transition” rather than just confronting the fact that over the next 24 hours you have the opportunity to place an order for a dedicated server with instant activation through our website on the old favorable conditions:
http://ua-hosting.com.ua/nl-servers.html - you can order and get servers instantly here!
NL - Intel Dual-Core G850 / 4GB DDR3 / 4x1TB SATA2 / 100Mbps Unmetered (only 4!) 59.00 / month (instead of 104 per month)
NL - Intel Quad-Core Xeon X3440 / 8GB DDR3 / 2x1TB SATA2 / 100Mbps Unmetered (only 4 !) 69.00 / month (instead of 150 per month)
NL - Intel Xeon E3-1230 / 8GB DDR3 / 4x1TB SATA2 / 100Mbps Unmetered (18 instant) 89.00 / month (instead of 150 per month)
NL - Intel Xeon E3-1230 / 16GB DDR3 / 4x1TB SATA2 / 100Mbps Unmetered (only 2!) 104.00 / month (instead of 165 per month)
There are few Servers left and the sale will be relevant anyway for no more than 24 hours from the date of publication, do not be late to get your dedicated server at a good price! Even if you are just planning your project and while the server is not needed - it's time to order, because the savings in the long term are significant, and the presence of a “stand-by” dedicated server will stimulate you to work on your project, will serve as additional motivation for speedy implementation :)