What Makes So Called Low End Boxes Lesser Than Half Priced? There are many peoples who are running websites using VPSDime like cheap web hosting. What is Difference Between Costlier Cloud Server Vs Cheap Cloud Server? Is low cost related with low quality of service? We have tried to answer as much questions as possible.
What is Difference Between Costlier Cloud Server Vs Cheap Cloud Server?
First difference is the software used for virtualization, cloud computing. OpenVZ usually costs lower than KVM or XEN virtualization. We have an article comparing KVM vs OpenVZ. Secondly, any virtualization likely to have a chance of over-selling RAM, even disk-space. Premium web hosts unlikely to over-sell (rather go towards slight loss of RAM usage). That makes a difference between Rackspace and VPSDime or OVH or similar services. Unless one actually face trouble, there is not much difference for just hosting website. There are matters and terminologies like shared cloud, dedicated cloud took birth for the sole reason of various methodologies of deploying and selling cloud. Third, bulk sell of cheaper further decreases their pricing.
Forth, Fifth and so on are more towards practical matters. Cheaper web hosts have lesser man power resulting lesser expenditure. Man power is from peoples on live chat to included dedicated paid management. Managed servers always cost higher than unmanaged, semi-managed. Web designing of cheaper web hosts demands less expenditure. Another matter is research, contribution in open source development and new innovations. Cheaper web hosts will not invest for innovation of newer technologies, rather likely to use currently available open/free software and/or known proprietary software.
Now, if you think of Rackspace; you will understand that they has good expenditure behind non-server matters, which possibly no lesser than 10-50% of total expenditures. As a result, the end service becomes quite costlier. When it becomes costlier, number of customers become lower in number – of different segment than mass. That factor further increases pricing as there is a physical limitation of owning number of datacenters.
But in reality, many cheap cloud servers are actually good for the purpose. A very important busy site is not practical to get hosted on cheaper. The user segments are different.