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90000 servers and the setup fee for old customers


Andy
24-02-2011, 13:25
Quote Originally Posted by Rilly
I'd be happy if you'd just stop charging a monthly charge for the USB drives after we've already bought the darn thing 3 times over... but I guess thats another story........
Would be nice wouldn't it...

Rilly
24-02-2011, 05:02
I'd be happy if you'd just stop charging a monthly charge for the USB drives after we've already bought the darn thing 3 times over... but I guess thats another story........

Myatu
23-02-2011, 17:49
Quote Originally Posted by marks
we're only trying to a) give an incentive to customers to keep servers for a certain time (at least) and b) once that time is reached, help customers to upgrade.
Essentially there'd be no difference between 1 customer keeping a server for 3 years vs. 3 customers using the same server 1 year each (which is what I'd suggested).

Though, as Andy pointed out, there's little incentive - even with a setup-fee waiver - to keep a server for such a period, as by halfway that time you can get a server with double the capacity at the same price.

It'll only be a handful customers who have tightly integrated things with their existing servers, or those who have built things like a house of cards and are worried about moving who'd would be inclined to keep it.

However, if instead you would have a sliding scale, then you might be able to change that. That is, it would be worth keeping the server for longer, as in year 2 you get X amount discount, year 3 XX amount, etc. This way, getting a newer server would not have the same or better benefits as keeping the old one.

Oh! ... And, it can work nicely with my suggestion (that is, if the customer decided not to take the discount in year 2 or 3, you can pass this discount on to the next customer who's willing to take the server over). Voila! Champagne?

RichardWnl
23-02-2011, 17:00
Most Kimsufi servers I have got are kept for 2 years. And the OVH servers for around 1 year.

I would like to point out something:

C-250G (new range) 14.99
C-05G (old range) 19.99

Differences: New servers have 250GB HDD instead of 500GB. New servers come with DDR 1 or DDR 2 RAM. Old range has DDR2 guaranteed. So almost the same.

If you don't need the extra 250GB space, it would be cheaper to switch to the C-250G after 1 or 2 years then waiting for 3 years to get a coupon, right?

What I am saying is, there is a setup fee. I am still not happy with it, but that's a different story. Though after 12 months I would say there is a good reason to reward a customer with a coupon. This to give them the opportunity to upgrade to a better server if needed. Order an extra server, give it a friend... you name it.

From what I understand is that if you have an OVH server for 2 years you'll be rewarded with 2 coupons. Why not make it 1 coupon coupon for each year / additional year?

And 1 coupon for each 2 years you keep a Kimsufi server?

Andy
23-02-2011, 13:58
Marks, the point is nobody will WANT to keep a server for 2 or 3 years. If a new range comes out, why should they be paying the same money for a server that you could get rid of, order a new one and get better specs? They won't, and that's the point.

I understand the issue with turnover, as you have to find a way to dispose of the old hardware which isn't ideal if it still works (I'll take it if you want rid by the way ). But as Myatu suggested you could "auction off" older hardware at a lower price and free setup. It will be a nice server for someone starting out with dedicated servers or who just needs a low power but full dedicated server. Once the hardware fails, your turnover problem doesn't exist anymore. You replace with older hardware again until that fails, and so on so forth.

Everyone benefits! OVH get money, and customers get an older but fairly nice server for a lower cost.

marks
23-02-2011, 13:23
Quote Originally Posted by Myatu
From this I gather that you replace the server with a newer model once the customer finishes his contract? That is very costly indeed!!
we're only trying to a) give an incentive to customers to keep servers for a certain time (at least) and b) once that time is reached, help customers to upgrade.

Certain models are replaced if they've been for a long time and they are not popular anymore. But it's not everytime a contract is finished - that would definitely be very expensive.

As long as the server model is on our website, it's put back to the pool of available servers after proper formatting, testing and replacing the harddrive if it's been running for too long.

Andy
23-02-2011, 13:13
Myatu's idea is a very good one and I would happily go with that.

Myatu
22-02-2011, 18:19
Quote Originally Posted by marks
yes, I understand that. The offer is an incentive to have customers use the servers for longer, as it's more sustainable for us and it reduces the turnover
From this I gather that you replace the server with a newer model once the customer finishes his contract? That is very costly indeed!!

Why not keep that server as-is for those 3, 4 years, then when a customer finishes the contract, you can put it back up for rent on a "bargain" page, akin to many of your competitors?

I'm sure there'll be people out there - me included - who'd be willing to recycle a discontinued server (and you could do those without the setup fee or a discounted monthly fee as a choice, for example, to encourage those servers to be used first).

stoner
22-02-2011, 17:49
Thats so true.
I have one of the last types of the EG bestof. (quad core 8gb ram)
its just nearly coming upto 12 months now, but for pretty much the same price (+ setup) I can get a much better server for my money, TBH I dont even know why i'm holding onto it anymore. But with this new offer you saying about I would need to keep it for another 12 months, by which time you will quite likely release another iteration of the EG besof range, so I will be even more outdated untill the 12 months has passed for me to then get an upgrade without paying the setup fee.

12 months = Free setup does sound much better, but even that is a long time to keep a server, when the provider (OVH) upgrades there plans 1 or 2 times a year. For the user who tries to keep on the bleeding edge, they will never get this free setup and thats not because they burn through servers, its simple because they want the best available to them at the time..

Maybe even do 6 months = half price setup.

marks
22-02-2011, 16:17
yes, I understand that. The offer is an incentive to have customers use the servers for longer, as it's more sustainable for us and it reduces the turnover.

This offer is saying that, if you keep the server for 2 years/3 years (ovh/kimsufi), then we make this upgrade cheaper for you. But that's after this time.

Andy
22-02-2011, 16:12
The point is marks, the hardware goes out of date a LOT more quickly than 2 or 3 years. Ideally everyone would want to upgrade every year, not every 2 or 3 years. That's why I think it's a bit steep. It's just Oles trying to sound like he's making a good offer when really it's not...

marks
22-02-2011, 16:11
Quote Originally Posted by Andy
Seems a bit steep really. I mean who is going to keep a server for 3 years when better hardware for the same price can be rented? I certainly wouldn't.
the idea would be to use the voucher from this server that you had for 2 years (for ovh, 3 years for kimsufi servers) towards the purchase of a new server to replace it. So, you can upgrade without paying the setup fee.

Also, just to clarify:
- if you have 2 servers for at least 2 years from ovh.co.uk: you can request a voucher for each server
- if you have 1 server for at least 3 years from kimsufi.co.uk: you can request a voucher for that server

makno
19-02-2011, 13:36
i do think that since you can avoid the setup fees for a 1 year contract, once you have a server for 1 year you should be offered a setup free upgrade, i mean you kind of prooved that you are not just recycling servers every now and than...

RapidSpeeds
17-02-2011, 19:15
Quote Originally Posted by Andy
Seems a bit steep really. I mean who is going to keep a server for 3 years when better hardware for the same price can be rented? I certainly wouldn't.
Hit the nail on the head.

No one wants old equipment; personally, I would rather take the 50 hit and just get something twice as powerful rather than wait 1/2yrs to get a free upgrade.

ITEXPERTS
17-02-2011, 11:56
OVH should make something like 1 Year for OVH and 2 Year for Kimsufi

OR for every 10 Dedi -Next one with Free Setup and It starts again or lets say for every 3 dedi

turbanator
17-02-2011, 05:52
fail ^ infinity

shud be kept simple..have an ovh server for more than 1 year..order a new one without set up fees..and the process starts again..keep that new server for 1 year again...

makno
17-02-2011, 01:34
fail

NickW
16-02-2011, 22:18
You have 2 coupons for 2 servers after 2 years
I have a server ovh 3 years, tomorrow I will
receive 3 vouchers for 3 new servers.
Am I misreading something?

Andy
16-02-2011, 22:12
Seems a bit steep really. I mean who is going to keep a server for 3 years when better hardware for the same price can be rented? I certainly wouldn't.

Rilly
16-02-2011, 22:07
is that counting start now? or does it include servers we've had since the beginning.. (I've had a kimsufi for 3 years now)

Winit
16-02-2011, 22:04
1 year for OVH and 2 years for Kimsufi would be reasonable.

slacker
16-02-2011, 21:20
from what i can ready it's 2 years for ovh, 3 years for kimsufi.
Not 1 year.

Tz-OVH
16-02-2011, 20:19
I've kept 1 of mine over a year now.

NickW
16-02-2011, 20:03
Hello,
Since the implementation costs of installation 1 year ago
We strongly reduced and the situation is tourover
manageable again. Installation costs have enabled us
also increase the quality of dedicated server delivered "OVH"
who have 6 months warranty to be delivered with
nine drives (less than 1000 hours or 1 month).

Thanks to strong growth in 2010 continues this year
we've gone about 10 days ago 90'000 servers (!)
on our infrastructure. Over 50% of park is less than 12
months. And less than 10% of the park has more than 3 years. As you
are more than 70% have more than one server, we discussed
with you and think about how to help you grow while
we avoid the problems of abuse. The goal is simple:

how to continue to offer quality.

Here's our idea. We set up a program
customer loyalty that keep the server on several
years. And after a while, the program allows
to have "a new voucher for a new server
which cancels the cost of installation costs.

This loyalty program is designed to assist you
your growth in 2011 and 2012. So you have the
opportunity to build new machines
your existing architecture or replace your old server.
Also, you can test this or any other kind of server
without paying the cost of installation.

You can use the vouchers for you, give
a friend, use them to deliver a server to a client or
.... resale. You are free on how to consume them.

The originality of this program, which automatically applies
to all existing customers, is that:

- If you have a server "OVH"
- You have 2 coupons for 2 servers after 2 years
- Then a voucher for a new server every year
Next if you keep the server one more year

- If you have a server "kimsufi"
- You have a voucher for a server after 3 years
- Then a voucher for a server in each subsequent year
if you keep the server one more year.

Example: I have a server ovh 3 years, tomorrow I will
receive 3 vouchers for 3 new servers.

This is the first time that OVH is a program that
not egalitarian among all customers. We made a
strong distinction between clients that we are faithful in
using a single server over several years and those
who come to us for specific needs. Because for
they think we redirect to the (future) publiCloud
with billing by the hour without installation costs (in
Instead of a dedicated server with installation charges and payment
then monthly), this to better respond to needs
timely, factual or calculation, but without having to manage
abuse.

Important:
For all servers that pass anniversaries
you will receive the vouchers once a month.
We decided to do the 4th Tuesday of the month. This month
it falls below 23. The next week, so you will
receive all vouchers for all servers
you ... hehey! The voucher is valid for 5 years (ie
in our case it is the infinite cosmos). By cons,
if you make us a dedicated server on which you
purchase orders generated for one month you use them
after the server. As a result, it
too late. In accounting terms, we need to expire the
vouchers (such as reward points) to avoid
problems with accounting experts that validate our
assessment ...

This program does not include servers or HG PHI.

Thank you for talking and the ideas you've
given on installation costs. I think
arrived at a nice solution that meets almost all
needs without us generate and abuse with which
we happen to offer quality without compromise.

And en route to the 100,000 servers ...

Regards
Octave
Good news for old customers, but it does mean you need to keep a server continuously for a year.

Tz-OVH
16-02-2011, 20:02
Thread title sounds promising, translate please!

oles@ovh.net
16-02-2011, 18:40
90000 servers and installation costs for longterm customers
Hello,

Since establishing installation costs a year ago, we have seen a large reduction in turnover and the situation is now manageable again. Installation costs have also allowed us to increase the quality of "OVH" delivered dedicated servers which have for 6 months are guaranteed of being shipped with hard drives that are less than 1000 hours or 1 month running.

Thanks to strong growth in 2010 which continues this year, 10 days ago, we exceeded about 90,000 servers (!) on our infrastructure. Over 50% of our stock is less than 12 months. And less than 10% of the stock is more than 3 years. As you are more than 70% likely of having more than one server, we have had discussions with you and are thinking of how you can help us to grow while avoiding the problems of abuse. The goal is simple:

How do we continue to offer quality?

Here's our idea. We set up a loyalty program for customers who keep the same server over several years. And after a while, the program allows for "a new voucher/coupon for a new server that cancels the cost of installation costs.

This loyalty program is designed to accompany you on your growth in 2011 and 2012. So you have the possibility of taking on new machines to enhance your existing architecture or replace your old server.
Also, you can test this or any other kind of server without paying installation fees.

You can use these vouchers for yourself or give it to a friend or use them to deliver a server to a customer or .... resell. Its up to you on how you use them.

The origins of this program, which applies automatically to all existing customers, works like this:

- If you have a "OVH" server
- you have 2 coupons for 2 servers after 2 years
- then a voucher for a new server every year if you keep the server one more year

- If you have a server "kimsufi"
- you have a voucher for a server after 3 years
- then a voucher for a server in each subsequent year if you keep the server one more year.

Example: I have an ovh server for 3 years, tomorrow I will receive 3 vouchers for 3 new servers.

This is the first time that OVH has had a program that is not equal among all customers. It makes a strong distinction between customers who have been faithfully using a single server over several years and those who come to us for specific needs. For the latter, it is thought that they will redirect (in the future) to the publicCloud with billing by the hour without installation costs (instead of a dedicated server with installation charges and then with monthly payments), which responds better to specific needs, events or calculations, but without having to deal with abuse.

Important:
For all servers that pass the anniversary dates you will receive the vouchers once a month. We decided to do the 4th Tuesday of the month. This month it falls on 23rd. So next week, you will receive all the vouchers for all your servers... hehey! The voucher is valid for 5 years (in our case it is the infinite cosmos). However, if you have returned a dedicated server for which you have gotten the voucher, you have the right to use it one month after the expiry of the server. After, it's too late. In accounting terms, we need to expire these vouchers (such as reward points) to avoid problems with accountants that check our accounts ...

This program does not include HG servers or RPS's.

Thank you for talking to us and giving us your ideas regarding installation costs. I think we reached a nice solution that meets almost every need without generating abuse and with which happens to offer quality without compromise.

And en route to the 100,000 servers ...

Regards
Octave