alt Hacker NewsAs a long term metal customer, I understood the need to raise prices for energy usage.... but for disk/ram I'm struggling to be sympathetic. The hardware I am using is already procured by them, and until such time there is a hardware failure I cannot support a price rise, because were is their justification for existing hardware?
Replies
greyb • today at 5:29 PM
Because in a free market, making rational choices about pricing in line with the industry allows you to build capital to further expand, which coincidentally also lets you buy more RAM.
t0mas88 • today at 5:38 PM
They are not raising prices for existing contracts, only new ones.
Stitch4223 • today at 5:32 PM
They will need to buy new hardware too I guess…
An ongoing business that intends to remain ongoing has to charge current customers based on the replacement cost of consumable items used to service those customers.
That's why for example gasoline prices react almost immediately after something affects (or even threatens to affect) the price of crude oil, even at gas stations that have just filled their storage tanks and will be selling that already purchases gas for quite a while.
Most of us don't usually thing of computer hardware as a consumable but to a hosting business it effectively is.