OVH – 10% Price increase for services
ovhcloud.com
OVH – 10% Price increase for services
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Re: OVH – 10% Price increase for services
#2Well that's lame. There was 0 increase in electricity here, neither did the salaries. They could have use this fact to be more competitive.
Re: OVH – 10% Price increase for services
#3Well that's lame. There was 0 increase in electricity here, neither did the salaries. They could have use this fact to be more competitive.
They say themselves that this increase is because of inflation + energy prices (https://blog.ovhcloud.com/ovhcloud-price-adjustments-in-2022...). Are you saying they are lying about this?
> In 2021 and especially in 2022, the global rates of inflation have changed our daily lives. With an annual rate reaching +8.9% in July 2022 in Europe
> Thanks to the long-term management of our energy costs in 2021, we did not immediately need to change our prices. However, at the end of 2022 and in 2023, part of our energy purchases coverage are coming to an end and we are going to end up buying energy at a higher price
Re: OVH – 10% Price increase for services
#4Well that's lame. There was 0 increase in electricity here, neither did the salaries. They could have use this fact to be more competitive.
Where is "here"? Metropolitan France?
Re: OVH – 10% Price increase for services
#5do any of the hyperscalers have vertical integration in energy production for their datacenters?
Re: OVH – 10% Price increase for services
#6Well that's lame. There was 0 increase in electricity here, neither did the salaries. They could have use this fact to be more competitive.
All hosters in Europe that I know of increased prices this year due to increased electricity costs. If anything OVH is late to the party.
Re: OVH – 10% Price increase for services
#7On mobile this is unreadable: each column is converted to a row with no label.
Re: OVH – 10% Price increase for services
#8Well that's lame. There was 0 increase in electricity here, neither did the salaries. They could have use this fact to be more competitive.
Electricity prices for consumers currently are heavily subsidized in France because otherwise there would be riots: spot market prices are regularly above 0.40€ and the current end user price would probably be around 0.80€.
OVH is a business, thus they have to pay the real prices.
In the end we will all pay via massive inflation for the competence of the European politicians.
Re: OVH – 10% Price increase for services
#9do any of the hyperscalers have vertical integration in energy production for their datacenters?
My understanding is that for their own data centers (e.g. us-east-1 or us-central1) they are able to negotiate excellent costs of power by soliciting 100MW+ long term contracts, so they don't really need to. Energy is a lower margin business than tech, and they'd rather not get into the messy business of power generation.
For colocation data centers (e.g. Tokyo or Singapore regions), they're more reliant on the data center provider to do that negotiation, and they negotiate for rack space prices, so it's slightly different (thus why prices in regions can vary dramatically, though this is also labor, what the region can bear price-wise, etc.).
I assume they also have teams hedging power prices to keep those costs reasonable, while OVH and other tier 2's likely haven't reached that scale.
I'll briefly shill my product (crusoecloud.com) because we _do_ vertically integrate our power production and data centers by colocating modular data centers at oil wells (utilizing flare gas), wind/solar, etc. as a way of both keeping energy costs low/stable as well as solving related environmental issues (e.g. reducing methane emissions or providing base loads to renewables).
Re: OVH – 10% Price increase for services
#10Well that's lame. There was 0 increase in electricity here, neither did the salaries. They could have use this fact to be more competitive.
> There was 0 increase in electricity here
In France I think the price of electricity for professionals has been multiplied by five in the past few months. The price of electricity for residential customers and small businesses has only increased by 5% because the French state and EDF are shouldering the difference.