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> VPS OS Upgrade Promotion
sohot
Posted: Jul 20 2006, 04:26 PM
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I currently have 2 customers (that I have resold your VPS to) who have VPS based on RedHat linux 7.1.

I am currently paying around $24.00 a month for these VPS. As your upgrade promotion VPS's with Fedora Core 2 start at $39.95 per month, there is not much incentive for these customers to upgrade.

I dont think that my customers will be prepared to pay an extra $16.00 USD or so for extra resources that they are never going to use (as they are currently not using up the resources they already have). Particularly as there was already around a 40% price increase on these accounts not that long ago with no increase in the accounts resources.

So the discount given is no incentive at all, particularly as it is only a temporary discount! Even with the discount it will still be a price increase for these customers.

If you create some plans for existing customers at their current price point & also give a discount & more resources then they might be more interested in changing their plans.

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andy
Posted: Jul 20 2006, 07:05 PM
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Group: Advantagecom Staff
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Joined: 12-July 02



Thanks for the feedback. We need it because thinking of everything is a tough job sometimes. wink2.gif

I'll take this into consideration. For the time being, we don't have an offering that is comparable to either of the two plans you have resold since they were quite small. Most VPS customers these days need much bigger plans than the two you have. Usually, with accounts that small, shared web hosting (like the WebPro accounts) is a better fit.

However, we are experimenting with some smaller VPS plans at lower rates. We can't guarantee anything, though, because they're still experimental and they may or may not be made available.

The reason our lowest priced plan is $40/month has a lot to do with there being higher baseline costs associated with VPS plans than something like a shared hosting account. The reason they're so big is so that the price is justifiable in the potential customers' minds because they don't intuitively understand costs to run a VPS. All they really look at is price, disk space, and data transfer. Granted, some customers actually value reliability and speed, but most only think about that when they aren't getting it.

<begin rant>There seems to be this natural perversion in hosting customers that when things are running great and everything is fine, start shopping for a lower price so you can throw all that in the toilet and have something to whine about. <end rant> Just so you know, that really has nothing at all to do with you. We've just had some new customers sign on with the larger plans that were more than willing to pay more than they were with their last host because their last host was a total nightmare and your post reminded me of that in a round about way.


--------------------
Sincerely,
Andrew Kinney
CTO, Advantagecom Networks

Please do not private message me. My regular management duties preclude responding to every customer that sends me a support issue. Instead, post on the forum or contact tech support.
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sohot
Posted: Jul 23 2006, 03:44 PM
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Any new accounts created could be 'Internal only' accounts for existing customers only, that are already on the lower priced accounts & not offered to the general public.

If it is really costing you 10's of thousands of dollars as you state to have customers on the older versions of Linux then you can only gain if you can convince all your customers to swap over.
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andy
Posted: Jul 24 2006, 01:29 AM
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Group: Advantagecom Staff
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QUOTE
If it is really costing you 10's of thousands of dollars as you state


It sounds as though you suspect us to be lying to you.

QUOTE
then you can only gain if you can convince all your customers to swap over.


True, but only if we can get *everyone* to switch, which isn't going to happen. Otherwise, scenarios exist in which getting only some customers to switch is better than getting other customers to switch.

For instance, a really high usage VPS on an old VPS will make more efficient use of the hardware when on the same node as other well used VPS using the same OS. This is due to the shared disk caching used by Virtuozzo, among other things.

On the other hand, if that same VPS is on a node with several other older VPS based on a different OS, everyone on that node suffers because that is one more OS to cache, leaving less RAM for other things or some of the OS simply aren't cached which causes more disk reads and lower performance for everyone on the node.

Dedicating one node per OS isn't really an option for older OS VPS due to dwindling numbers of older VPS. There are a couple of older OS in particular in which there are only a handful of VPS.

So, for small, lightly used VPS based on an older OS, there isn't much benefit for us in moving them to a new OS since they don't take advantage of any performance gains anyway. Remember, for a hosting company, better performance = higher density = higher margins and better profitability. Anything that can lead to better profitability in a world of declining prices for all things tech is something that must be actively sought. It won't simply jump into your lap without asking.

There will always be hold-outs when it comes to change, so there will always be old nodes and an array of lightly used older VPS accounts running on those nodes. What is in question is how many old nodes do we have to keep around to service those older VPS accounts. The space and power used by those servers is extremely valuable and it could be used by newer and more efficient hardware that allows more revenue growth in the same space without expensive new infrastructure investments and their associated maintenance costs.

If we hadn't forced the customers on Cobalt RaQ 1 servers onto Cobalt RaQ 2 servers by moving their data for them and not allowing any choice, we'd still have customers sitting on Cobalt RaQ 1 servers as they fell apart around them. The same can be said going from RaQ 2 to RaQ 4 and from RaQ 4 to anything newer. Without forcing those changes, we would not have had room or power for the nodes currently running our newest services. Customers always resist change unless they're a developer and are naturally drawn to the newest software. We always try to minimize the impact those changes have on customers.

For now, we're making it optional and offering discounts to ease the process. I can see a day a couple of years or sooner down the road that we may have to be a little more arbitrary with the process. As it is, RedHat 7.1 support has been completely discontinued by SWSoft meaning that no new security updates are being issued and their developers are slowly but surely stripping all support for that OS from HSPC and Virtuozzo. Virtuozzo 3.0 already doesn't support RedHat 7.1. It won't be that far down the road and they'll drop support for that OS entirely, meaning it'll be unuseable from HSPC and won't function with any supported version of Virtuozzo. This is not me being an alarmist. It's real and happening.

For now, you have an opportunity to do this on your own timeline and, for awhile, at a discount.


--------------------
Sincerely,
Andrew Kinney
CTO, Advantagecom Networks

Please do not private message me. My regular management duties preclude responding to every customer that sends me a support issue. Instead, post on the forum or contact tech support.
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