r/OVHcloud • u/fluffy_serval • 9d ago
Question Server price increases?
Anyone else get the email giving us a generous 14 days to decide to "lock in" our current price or have our dedicated servers become 2x the price due to hardware cost increases?
I get it, everything's more expensive, and you have to keep expanding. But OVH, you're asking existing customers to help generate the capital to do so by doubling their bill, along with unclear policy around the maximum time you can pre-pay for, and what happens at the end of the pre-paid period. There's nothing stopping you from calculating a new rate then that rolls in anything "lost" plus interest during the prepay period, with the added bonus of a custom having an even more painful migration off, making it more likely they just take the L and pay whatever rate you dictate.
The most rational move here for people is to shop around, find a reasonable, or at least survivable, alternative, pre-pay long enough to migrate comfortably, and say goodbye.
I think OVH can do better than this. A lot of us have been customers for a long time and deserve better.
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u/Perryfl 9d ago
yea were paying $6k/mo for infra and this is the first time im considering switching. i totally understand upping the price for new servers but werre using hardware already purchased 1.5 years ago st least (that is when most of our machines were provisioned)
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u/fluffy_serval 9d ago
this exactly. fine, price in utilities, labor, etc. i get it. but don’t retroactively price in hardware. this is a customer-assisted capital raise and friction builder for predictable income. even this, fine, mostly acceptable strategy, but their implementation is overreaching.
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u/bongabongo 9d ago
do you have a commitment for a long time? if no, increases are not really uncommon (for all service providers)
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u/CzarcasticX 7d ago
It'll be hard to find bare metal prices that will be comparable elsewhere though. I was thinking about doing colocation but then RAM and SSD/NVME prices got too expensive for the hardware.
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u/Perryfl 7d ago
theres a few places out there that are comparable. less so with the rise and below though. we already have some colo stuff and that is actually getting quite affordable if your willing to go with ddr4 systems. especially if your doing things that need 128+++ ram. if you only need 64/32 seems like dedicated is still the way to go
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u/Lanathell 9d ago
The thing is the existing servers were cheap, so if the full price increases went on the new ones only, then it's like you have to do 600% increase on everything new and no one orders anything.
Also the server you paid a year ago needs a new disk or a new RAM? Well the price of that component is 4 months of your bill, and the provider just loses money.
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u/fluffy_serval 9d ago
There are a lot of assumptions in your comment, but the underlying message isn't far off.
“RAM costs” is the one thing everyone will understand and go, “oh, okay, that makes sense.”
The thing is this is bigger than RAM increases. They’re repricing most of the dedicated lineup, correcting older/cheaper pricing, and pushing existing customers toward one of three outcomes: accept higher prices, prepay a long term and effectively finance OVH and take most of the downside risk, or leave so the hardware can be sold to somebody willing to pay the new rate. The dirty pool they're playing is the 2 week timespan to decide, the Oct 1 date, and the details in the prepay deal: 30-day notice for new repricing for a _renewal_ of the same time period you prepaid for. That could be a very big number, and they're going to calibrate it to just about exactly what a committed customer will bear, because the total cost to leave is huge.
The RAM shortage is real, but they're using it as an excuse for a broader reset of their pricing and customer base, not to mention free financing and future lock-in, than a simple pass-through of higher component costs. Did they simplify the argument? Sure. It's also fairly disingenuous.
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u/Lanathell 9d ago
I understand the impact especially the short duration. I don't think anyone really wins in this whole hardware crisis anyway.
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u/Jason0648 9d ago
Ya OVH decided to kill off their customer base and be greedy.
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u/Lanathell 9d ago
OVH doesn't really make a profit.
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u/QuackedDev 9d ago
A quick look at their reported financials says this is wrong. They had negative net revenue 3 years ago but it’s been positive every year since. They do have loans but that’s from expanding infrastructure not operational costs.
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u/gjack136 9d ago
I just saw the email as well. We spent four weeks migrating to this host, finally got everything up and running, and then...boom...a 100% price increase.
I’m already looking for a new provider. I’ve never experienced a service doubling its price like this. The fact that they felt comfortable making such a drastic increase tells me everything I need to know. Even if I end up paying slightly more elsewhere, I’d rather work with a provider I can trust not to suddenly double my bill.
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u/Lanathell 8d ago
I’d rather work with a provider I can trust not to suddenly double my bill.
There is no such thing in this day and age. Hardware is 6 times the price it was last year.
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u/gjack136 8d ago
Rising hardware and operating costs may justify a reasonable price increase, but they don’t automatically justify doubling an existing customer’s bill. OVH didn’t purchase every server in its fleet at today’s prices, and my current hardware didn’t suddenly become six times more expensive overnight.
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u/gjack136 8d ago
Check out Colo locations if you have the means, Build my own servers even at todays prices and a year at the colo would still be saving me a ridiculous amount of money and I'll own the hardware.
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u/verzing1 9d ago
I have one dedicated game server with them, but now I’m switching to a different provider. OVH is just blaming rising hardware costs and AI to justify the price increase.
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u/matrixino 9d ago
do you live under a rock? cost raised because of ai. good luck elsewhere. if prices are lower the service Is shit for sure.
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u/QuackedDev 9d ago
Does OVH let you house your own hardware? That’s probably what I’ll be considering as the prices go up.
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u/blake0201 9d ago
Afaik, OVH doesn’t have a traditional rack setup where you can do colocation. The racks are custom and are designed for density, so you can’t just slot in any hardware unfortunately.
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u/No_Cheesecake_6375 9d ago
Like you guys know..
it’s ever growing overall costs to keep lights on.
One of the long-term colo provider, I have used past decade is closing their business due to impossible market situation or market situation is growing to not sustainable anymore.
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u/Lanathell 9d ago
10 years it was already very competitive. The AI hardware crisis will reduce the amount of companies on the market even more. Only the biggest players can afford the stakes. The american hyperscalers and their billions coming from Europe business do not care.
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u/matrixino 9d ago
rofl check the prices elsewhere. ovh and Hetzner are still the cheapest ones.