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They’re out to destroy the Philippine web hosting industry




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]



Abe is the founder and Editor-in-Chief of YugaTech. You Can follow him on Twitter @abeolandres.

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9 Responses

  1. its me says:

    shhhh…. i agree to you.. i tested my wp with new host. it’s free. but now i cannot access my site. or even my cpanel there. a bad gateway is returned. hehehe… maybe you know who i am talking to. planning to purchase a paid hosting someday.

  2. guest says:

    which host charges P25 monthly?

  3. ganyan din ang problema sa industria ko sa pilipinas. maraming mga new players (most of whom are breakaway groups of the more established companies) who are offering services at low prices.

    yes, they don’t last long and they eventually fade away. problem is there are new players all the time.

    mahirap talagang mag negosyo ano?

  4. yuga says:

    It’s something the Philippine market has gotten used to. A lot of un-informed customers will decide primarily on the cost rather than the value. Long term players will eventually succeed if they have enough capital while customers can just hop from one service provider to another.

  5. Fleeb says:

    I remembered boxed versions of distros, which are priced not for the distro itself but for tech support, aside from commercial icons.

  6. Leon Kilat says:

    Abe,

    I think Ploghost shouldn’t be worried, you guys offer great packages and support. I’ve never had problems with Ploghost – ever. I’ve been telling some my friends – who ask me for help on their sites – to transfer to Ploghost.

    Leon Kilat

  7. Vix says:

    P25/month? What do people expect to get for that? Are we going back to the days of “Unlimited Bandwidth, Unlimited Space for Low Prices”.

    I can bet you that such a business is overselling on space. I pity the people who get sucked into this thinking this is a good deal. Heck you can’t even get a decent snack for P25!

  8. Fleeb says:

    That’s the tradeoff. Maybe it’s just the Filipino (could be others too) mindset.

  9. RuelMinds says:

    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”

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