Almost every month, a new local (Philippine-based) web host provider would launch and offer unreasonable rates by undercharging potential clients in the hopes of getting a piece of the pie. But for what, a quick buck? Do they really expect to last very long? Maybe they did not thought of it really hard or must have missed a digit or two in computing their ROI.
What I am worried about is that these newcomers will pull down the average pricing to the point that it does not become profitable anymore. Support suffers directly proportional to the number of clients. But what form of support will you get if one pays Php25 a month? Even with a hundred clients, one can only get Php2,500 a month — will that be enough to pay one person to support all 100 clients? One may not feel it at the start but it will kick in when support tickets pile up by the dozen.
Either they’ll end up increasing their rates (to be able to get more staff) or face the eventual service degradation. Either way, it’s a lose-lose situation.
[tags]web hosting, dedicated servers, philippine web host[/tags]
new local webhost lower their price to encourage/atract the clients of other hosting provider to transfer to them without thinking the quality of the service they can provide.
other way/style of new webhost is posting a negative reviews of other webhost :) “DIRTY BUSINESS”, oh my… what a filipino “crab mentality”