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Demand and Supply

, Demand and Supply

Demand and Supply

This is not an economy class but we are here to tell you the web hosting trend today. We can see the drop in demand of the dedicated servers but increases in VPS.

One reason I can see is the price. If you do not need the resources in a dedicated server, a VPS will help you save money. However, if you are calculating per gigabyte on RAM and the hard drives you will get, a dedicated server is cheaper.

In most cases, a dedicated server is not fully utilized. Average, we see servers used 40% or less is common. There are servers used as low as 15% at all times.

What are the reasons these customers have chosen a bare metal server over the VPS, here are my observations;

  • Past experience – In the past, virtualization is not popular and less stable. The choice is limited.
  • Privacy – Do not want a shared instance even it is virtualized.
  • Over-Provisioned – Expected traffic was underwhelmed.
  • Misled – Inexperienced, they were misled by the salespeople.

I’m a practical person and in my opinion, VPS or you call it a VM can fulfil 75% or more of the requirement. It is a matter of price. Most of these guest machine either they are low-weighted so they can have more guest machines in a node or the storage is expensive. There are cases you need storage space like a mail server.

However, you can see the price is coming down because of competition. Due to the demand, this will affect datacentre operators as well. As soon as it is virtualized, the footprint of the same in the dedicated servers will get smaller too. However, if the provider increased his ship in virtualization, his footprint will get larger in the datacentre.

So, it has depended very much on what they have focused and the market demand.

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