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Hosting provider FirstDEDIC announced a price increase for dedicated server rentals. From August 1 onward, prices will rise by an average of 17 percent. The company points to the harsh reality of the market. Equipment procurement prices have grown several times over. Inflation spares no one, not even data centers.
The changes will exclusively affect the physical contents of the racks. Platforms, processors, RAM, disk drives, hardware controllers, and additional network cards will become more expensive. Meanwhile, Microsoft and ISPmanager licenses, additional IP addresses, and traffic will retain their current cost. The provider implies that software and bytes are not yet subject to the same pricing pressure as silicon and metal.
Discount Math and a Temporary Reprieve
Clients with active discounts will not lose their bonuses entirely. The discount will continue to apply. However, its value will be calculated from the new, higher base service cost. This is a classic maneuver. It maintains the illusion of loyalty while simultaneously boosting revenue.
The provider offers a method to lock in the current price. Clients can extend their server rental until August 1 inclusive. Terms of 1, 3, 6, or 12 months are available. After the paid period ends, automatic renewal will occur under the updated tariffs.
A Budget Baseline
The company offers an example of the most affordable configuration to assess the scale of changes. A server based on an Intel Xeon E3-1275 (3.4 to 3.8 GHz, 4 cores) with 8 GB of RAM and two 240 GB SSD drives currently costs $70 per month. A one-year rental of this same equipment amounts to $750. After August 1, these figures will become history and yield to new financial realities.