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No, ‘low-cost’ is not necessarily a bad thing (well, not forever), however when it comes to a services trade as competitive and with as thin margins as the net hosting industry, customers better watch out. Hosts providing ‘low-price’ services tend to supply the planet for Rs. 900 per year however, usually fail to deliver even the most basic of services. Shocked? I’m not. Let me justify some basics for the benefit of the vast majority who would still be unsure on what I’m rambling about.
A “net host” could be a company (well, most like to think of themselves as such but that’s an entire new article) that is in the business of procuring bandwidth (net connectivity) and servers (glorified computers) with the intent to re-sell the same, in smaller bits, to individuals who want space for storing for his or her e-mails and websites. This can be typically (scan perpetually) accomplished by renting out dedicated servers with a decent onerous drive and bandwidth quota and then using a hosting automation suite (management panel) to divide the server resources up into smaller chunks called ‘hosting plans’. The goal is to cost these plans during a means that they remain reasonable for the shopper while helping the host maximize exploit the resources it has.
Now comes the fun part…
Since there are virtually no barriers to entry in this specific business, new internet hosts keep popping up every day. This helps keep the price for hosting services sane and ought to also mean better service for the customers since there are various hosts competing for his or her business. What really happens is that one Johnny-return-lately decides that the only approach he will grab some market-share is by providing all-time low prices. Once customers begin quoting his worth to the host struggling for his or her business, the host decides to match it. Before you recognize it, everybody has slashed their costs by 0.5! This, in Pakistan, will be seen every 10 – 12 months.
“Sensible”, you say? Scan on…
What will this mean for the internet host? Suddenly, all their existing clients are paying them [*fr1] of what they used to. This implies that in the coming year, they would have to generate twice as abundant new business just to form the identical quantity as last year! Is this considered growth? I assume not!
Sadly, the quantity of shoppers will not magically increase with every value shave. Therefore, the web hosts are left with little alternative different than to cut prices just to create ends meet. Where there have been 3 support individuals, they decide to form do with simply one. Where there were 2 servers earlier, they decide that they will load all of the shoppers onto simply one server resulting in lower operating costs. These measures, needless to say, do have a positive impact on the host’s bottom-line but deteriorate the services resulting in un-answered support queries and long periods of downtime (web site/email inaccessibility) or extraordinarily slow server response thanks to excessive loads on the server.
Currently, if the host were to put their existing clients 1st, they would worth their service fairly so that every client not solely feels smart in his wallet, but will conjointly rely on the service being offered. I guess, all it boils down to is; whether a internet host is in this business to produce a prime-notch service with a protracted-term business goal or is just there to form a fast while competing with all the fly-by-night hosts who happen to come back along.
Recently, I’ve got return across at least three such hosting firms that are currently in financial peril as a result of they could not resist the urge to slash prices so as to try and capture some new business. Sadly enough, these aren’t folks who are ‘new’ to the industry. Such an impact on the market is magnified ten fold when an older host decides they would be better off by simply slashing prices rather than improving on service. Therefore, the younger corporations follow suit and create a large number for themselves and more importantly their clients. The ultimate outcome is that pissed off shoppers decide to change to foreign net hosts that offer a better service at a saner price.
From experience, I’ve got learnt that providing a sensible service is what really matters. The rest falls into place when purchasers realise that they will only run their online business if the service they get is of good quality. Once all, you get what you pay for. What good is a low cost service when you’ll eventually stop getting any?
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