Hi Guys,
Considering the cheapest dedicated offer in Miami IX was 299 for 128 GB of Dual E5-2620, I want to know how anyone can make profits by selling 2GB XEN server ?
I am being realistic here. First of all you can not sell the whole node. Lets say you kept 10 GB Memory for your node to manage than you have left over 118 GB to sell. This at LEB standard price of 118/2 VM x 7 DOLLAR = 413, If I just now add cost of pricing of IP and the cost of transactions ( payment gateway ) and miscellaneous cost I can easily deduct 10% more....leaving you around 360.....Now that is a pretty close.....profit of 60 USD.
But what do you pay for support of those 56 Virtual Machines and your support staff ??
At the end.....Do you make considerable profits to buy your next node? Please comment.
The VPS business of this kind seems surprising to me. Surely it is a profit even at that prices, Thats why they are being sold in the first place.There must be some catch which only a good provider can explain I think.
Please do not consider buying your equipment and all that stuff, colocation, since those calculations will also come to a similar price standard too.