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OVH amazing new deal

Discussion in 'Server Configuration and Hosting' started by Floren, Oct 25, 2013.

  1. Floren

    Floren Well-Known Member

    Dedicated server PE 2
    Technology: Nehalem
    CPU: Intel Xeon W3520 (4 cores / 8 Threads)
    Frequency: 2.66GHz (3.4GHz Turbo Boost)
    RAM: 24 GB DDR3
    Hard disk: 2TB SATA2
    Bandwidth: 100Mbps - 5 TB/month

    All this for $60/month. o_O
    OK, everyone knows I like OVH (there is a reason for that)...
    Be aware, no failover IP's on that one (who cares for this price).

    Example of redundant setup: 3 x PE1 (web) + 2 x PE2 (db) = $310/month WHOA.
    All webs nicely syncing static data with a clean Facebook style replication and async on MariaDB... Amazing.
    Last edited: Oct 25, 2013
    Adam Howard likes this.
  2. p4guru

    p4guru Well-Known Member

    Adam Howard likes this.
  3. Marcus

    Marcus Well-Known Member

    Thanks for sharing your setup. I would be happy if you could elaborate why you prefer OVH. I heard it is a reliable huge host, there are problems with emails as OVH did host spammers in the past. I could use another hoster for sending out emails, so this is not a main problem for me.
    Adam Howard likes this.
  4. WSWD

    WSWD Well-Known Member

    Not a good deal at all I'm afraid. For around the same price (within $10), you can get a E3-1230v3, which benchmarks twice what the W3520 does, and will run circles around it. Plus, you get it in a real datacenter. OVH has a horrible network, horrible support, and a horrible business model.

    WAY better options out there.
  5. Tracy Perry

    Tracy Perry Well-Known Member

    For $55 base a month I'm getting a dual L5520, 24GB RAM, 1TB HD. For $10 more a month I get 30TB of transfer at 1Gbps port speed.
  6. WSWD

    WSWD Well-Known Member

    Which will smoke the W3520 too! :D
  7. Luke F

    Luke F Well-Known Member

    Not as impressive a deal as the Kimsufi 2G

    1.2ghz celeron - 1.6ghz dual core atom (luck of the draw)
    2gb ram
    500gb hdd
    100mbit unmetered within reason

    ~£4 a month

    disregarding the lack of raid and gigabit, it's probably the cheapest 'cloud' storage on the market
  8. WSWD

    WSWD Well-Known Member

    That's why they're over 1/2 $billion in debt...yes...billion with a B. You aren't going to see many of those deals anymore because it's putting them out of business.
  9. Parminder Singh Chahal

    Parminder Singh Chahal Active Member

    Debt is not bad when it is used for expansion of a business which is exactly what OVH has been doing.

    That is true for any capital intensive business and other companies with similar capacities are in even worse conditions when it comes to debt. OVH does not advertise if you have notices and their Canada facility is completely sold out apart from some cheap stuff that is still available. This is a very lean company with no nonsense approach. I myself have a few servers with them in their French and Canadian facilities and their service is second to none.

    The kimsufi range they have is their advertising tool and people like us advertise for them on every forum that is out there :) Like we are doing in this thread taking about how reasonable the prices are of as you said you wont see more of these deals. Its been like this for as long as I can remember. Instead of spending $5 a click on adsense they just sell cheap boxes which are priced to break even at the very least or even make a little profit so they are advertising without having to spend money. A very clever stratgy in my view.

    I have been using OVH for a long time now and I am a very happy customer.
  10. Parminder Singh Chahal

    Parminder Singh Chahal Active Member

    I have used many data centers over the years and I find OVH's network to be one of the best out there. Support is excellent and I am least bothered about their business model as long as I am getting what I pay for.
  11. WSWD

    WSWD Well-Known Member

    You're kidding right? Their network is one of the most overloaded out there. Guess you actually haven't been in any decent datacenter. If you're comparing bargain-basement bottom-of-the-line budget datacenters, yes, you're probably right, but they can't compete with real datacenters. If they could compete, they wouldn't be selling servers for $5/mo.
    Last edited: Oct 26, 2013
  12. WSWD

    WSWD Well-Known Member

    The problem is that they are never going to be able to recover from the debt selling $5/mo. servers. That came straight from the CEO. LOL!! The product overturn is so high that it is putting them out of business. That's not my opinion; that's straight from them!

    Did you wonder why they stopped orders completely on their low-end products, and are now restructuring their entire business model? Again, that's straight from the CEO. He realizes what everyone else has a long time ago...selling $5 servers is not going to pay off 1/2 billion worth of debt.

    Starting Monday, they're going to start selling their old junk at extremely discounted prices, because they have to make up the cost of that hardware. They have a crapload of old, outdated hardware laying around because nobody wants it...they sell their new stuff at $5/mo. and everybody moves to that. It's an absolutely horrible business model.

    Would you be bothered by their business model if they went bankrupt? That's exactly where they were heading!
  13. Parminder Singh Chahal

    Parminder Singh Chahal Active Member

    The number of banks ready to invest in OVH says an entirely different story. There are a number of banks happy to invest in OVH's business and that too without having to pledge any shares. What more evidence do you need. These banks arent stupid. Its a fine business model and they will not go bankrupt any time soon is all I know.

    Those $5 servers hardly cover the electricity bills if they are not highly subsidised which I believe they are but even if it is normal business rates it is barely enough for the amout of electricity the box uses ever month but it is just a tool for advertising and look at us talking about those $5 servers here without them having to pay us lot :) Its clever advertising my friend. You see OVH being discussed every where thanks to those few cheap KS servers they sell. Have you noticed the adwords bids for dedicated server related keywords lately? OVH does not spend that money that other do.
  14. Moshe1010

    Moshe1010 Well-Known Member

    And you need 24GB RAM for...?
  15. Tracy Perry

    Tracy Perry Well-Known Member

    Without context of who you are referring to
    1. Because I want it?
    2. Because on one of the servers I currently have 6 forums, 2 Coppermine Galleries and 3 WP blogs set up?
    3. Because I run Memcached with a 2GB cache?
    4. Because I run xCache with a 1GB cache?
    5. Because it's only $55 a month?
    6. Because I want it? ;)
    Last edited: Oct 26, 2013
    trizz, Alfa1, Shelley and 3 others like this.
  16. Floren

    Floren Well-Known Member

    Memory is essential for a large MySQL server. A quick example on this machine running only MariaDB:


    [root@dserv493-mtl2 ~]# grep -c processor /proc/cpuinfo
    [root@dserv493-mtl2 ~]# cat /proc/cpuinfo | tail -n 25
    processor       : 15
    vendor_id       : GenuineIntel
    cpu family      : 6
    model           : 46
    model name      : Intel(R) Xeon(R) CPU           X7560  @ 2.27GHz
    stepping        : 6
    cpu MHz         : 2266.818
    cache size      : 24576 KB
    physical id     : 1
    siblings        : 8
    core id         : 11
    cpu cores       : 8
    apicid          : 54
    fpu             : yes
    fpu_exception   : yes
    cpuid level     : 11
    wp              : yes
    flags           : fpu vme de pse tsc msr pae mce cx8 apic sep mtrr pge mca cmov pat pse36 clflush dts acpi mmx fxsr sse sse2 ss ht tm syscall nx rdtscp lm constant_tsc nonstop_tsc pni monitor ds_cpl vmx est tm2 ssse3 cx16 xtpr sse4_1 sse4_2 popcnt lahf_lm
    bogomips        : 4532.90
    clflush size    : 64
    cache_alignment : 64
    address sizes   : 44 bits physical, 48 bits virtual
    power management: [8]
    Last edited: Oct 26, 2013
  17. Slavik

    Slavik XenForo Moderator Staff Member

    Selling as in, physically selling the hardware, or re-purposing old servers?
  18. Alfa1

    Alfa1 Well-Known Member

  19. WSWD

    WSWD Well-Known Member

    As far as I understood, re-purposing them. They really can't sell the hardware whole (they would have to part it out) because they don't use conventional cases or racks. They'd pretty much be of no use to anyone else unless they just sold the parts.

    The problem they were having is that they would offer one server at say $5/mo., no contracts, etc. Then they would offer a much better server a month or two later at the same $5/mo. People would simply upgrade to the new server, leaving OVH with all sorts of hardware that they haven't come anywhere close to reaching the ROI on. This was quite literally driving them into bankruptcy. Nobody wanted to have the old hardware when they could purchase better hardware at the same price...or cheaper. For that matter, you aren't going to reach the ROI on $5/mo. servers...ever. That's problem #2. They're $500+ million in debt, and weren't making profit on any of their servers. They will likely never be able to pay back that debt. They'll either be bought out, go bankrupt, or the EU will just keep funding the massive failure. Yet some people in this thread seem to think that's a wonderful business model. This isn't rocket science. It's simple 3rd grade math. $5 doesn't pay for the power and bandwidth, let alone the hardware and a half billion dollars in debt.

    If you look at their new plans (http://www.ovh.com/us/dedicated-servers/), you'll see that they're also limiting the bandwidth on anything under $80/mo. This is to curb the INSANE overloading that was taking place on their network. So now you don't get unmetered until you get to the higher-priced servers.
    Walter likes this.
  20. Floren

    Floren Well-Known Member

    Their metering counters don't work, so you actually get unmetered service. They have been broken for years now.

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