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This seems like a good strategy for Linode - rather than decrease their prices as their running costs get cheaper, they offer more for the same price. This keep
by jpallen 14y ago
This seems like a good strategy for Linode - rather than decrease their prices as their running costs get cheaper, they offer more for the same price. This keeps them competitive on price, but keeps their revenue high. It reminds me of the way that car manufacturers tend to make their smallest car get bigger with each new iteration, and then introduce another smallest model. People stick with the model they like but are now paying for the second smallest car, at a higher price.
- jewel 14y agoIt's especially good since storage can be overallocated. The odds that upon hearing the announcement everyone fills up the new space is slim, so adding 20% more storage doesn't add 20% more costs.
- TillE 14y agoDisk space is particularly cheap. It's probably almost a natural process as they swap out older failed drives with newer ones of the same price but higher capacity. They've upgraded RAM in the past too, but they're still not offering great value on those terms compared to Hetzner or other German hosts. CPU performance isn't particularly impressive either. What Linode does have are great customer service, a good web interface, and good choice of datacenter locations.