OVH Dedicated Server Price Increase by 20%

[HostXNow]

What do you think of this email that I received earlier this morning regarding OVH increasing the cost of their servers by 20%? Only affects UK customers at the moment, but could well apply to everyone soon.

Dear customer,

At OVH we are committed to remaining competitive in both our prices and product ranges. While we have postponed action for as long as possible, economic changes following the Brexit decision have forced us to re-evaluate our pricing.

Back in June the UK decided to leave the European Union which caused the UK economy to rock and weakened the British pound against the Euro/Dollar. This impacted many businesses across the UK and in OVH’s case it triggered a price increase from our suppliers which we have absorbed over the past few months.

In response, OVH has had to carefully review its pricing structure across certain product ranges. As expected, following our in-depth review we have had to increase our Dedicated Server prices by 20%. We are in the process of updating our website to reflect this change today (Thursday the 15th of December). At the moment the new pricing only affects new customers and new orders. In contrast, as a valued existing customer, these changes will not be applied to your existing servers until your 15th of January 2017 invoice.

Thank you for your understanding and continued trust in OVH.

Hiren Parekh,

Director, Sales & Marketing

OVH UK

 

[Harry P]

I am expecting they will down price on their VPS and dedicated server packages but it's not a good news when reading this.
I don't understand why they only increase price for UK customers, it can be a test before applying for all other locations?

 

[HostXNow]

Rather than me copy and paste (duplicate content) you can find more information regarding this topic at http://forumweb.hosting/14177-ovh-dedicated-server-price-increase-by-20.html

 

[Zack]

That doesn't seem quite fair. I don't follow that kind of thing but did leaving the EU cause a 20% in what the British Pound was worth compared to the Euro/Dollar?

 

[serversget]

Hello! Maybe its depends on TAX. Hetzner has the same for Russian customers few weeks ago, they announce news about adding 18% for all services to Russians.

 

[Fusion Servers]

Really is because of the decline and Brexit, whatever happens next is ultimately up to the British government (and its people) and things aren't looking so good right now.

 

[SenseiSteve]

I don't think this is all that surprising given OVH's pricing model. They need to turn a profit just like everyone else in the industry. Sometimes, pricing adjustments are simply a necessary tweak to your operations.

 

[Harry P]

Harry P

I agree with SenseiSteve, they decrease prices but its helping increasing number of sales for them.
because more people want to have cheap hosting packages and ready to buy when they see an good offer.