[kwlug-disc] OVH costs and prices?

[Chris Frey]

Back around November during the sales, I purchased a year-long subscription
to a VPS that has 8G RAM and 75G SSD storage.  It was a pretty good
deal... the total for the year was about $75, so across 12 months
it was about $6.25.  If I had signed up for monthly billing, the price
likely would have been higher.

Then on Feb 20 I got an email from OVH saying that the monthly
price was going up to $10.25/mo.  I had already purchased the full
year, so it didn't affect me.  But their email blamed AI.  Here's
a quote:

	In recent months, the cost of essential hardware components
	has increased, driven by growing demand for computing, AI, and
	data-intensive workloads, combined with limited global production
	capacity of key hardware components, notably RAM and NAND memory
	used in storage drives.

	While we continue to optimise wherever possible, and this
	adjustment allows us to maintain a reliable and consistent
	platform over time and affects only a targeted selection of
	servers.

	Against this backdrop, we continue to invest in designing and
	operating our own infrastructure, diversifying our supply chain,
	and planning for long-term capacity. The rapid growth of AI and
	GPU-driven workloads is reshaping how cloud platforms are built
	and scaled, and we are actively adapting our infrastructure to
	support these new demands.

	Our priority remains to deliver predictability, transparency,
	and long-term stability. We are committed to helping our customers
	innovate, scale, and keep control of their data within a trusted
	and sustainable ecosystem

I expressed my disappointment at their poor planning.  I figured that
rolling out a new VPS line in November should have more solid financial
planning than something that needs a price hike in only 3 months.

Anyway, I'm still in a good spot, and I'll watch for another round
of deals next November. :-)   If the AI bubble has popped by then,
VPS prices might even come down.  Who knows.

Hope that's the info you were looking for.

- Chris





On Sat, May 30, 2026 at 05:25:09PM -0400, Khalid Baheyeldin wrote:
> Chris,
> 
> Can you please elaborate on what you said below in another thread?
> 
> What prices increased?
> 
> On Wed, May 27, 2026 at 1:54 AM Chris Frey <cdfrey at foursquare.net> wrote:
> 
> >
> > I mean, the inflation caused by AI companies have distorted the economy so
> > badly that huge cloud companies like OVH have to recalculate their costs
> > and prices.

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