Problems of cheap hosting Vietnam that sink your company

September 16, 2017

It can be tough to get out of a downward hosting Vietnam price spiral. Competitors offer more and more space at lower and lower prices.

Clients urge you to do the same, with the unspoken threat of moving to other vendors if you don’t comply.

  1. Revenue downward

What is the answer? Suppose you go the cheap hosting route. Then you will have to reduce your costs accordingly if you still want to make a profit. Technologies like virtualization to fit more webs into each physical server and automation to help bring down headcounts and employment costs can only go so far. At some point, you will run into the following challenges:

  • Degraded finances: Making less money per client and experiencing higher churn is not good for your bottom line. You could end up spending more to acquire new clients than the revenue you receive from serving them.
  • Poor support: Good support can be cost-effective, but it still costs money. A “cheap and cheerful” pricing policy means you will have to offer less, sometimes zero, support for the webs you host for your clients. You will also receive little or no backup support if you are using the lowest vendor to buy your Vietnamese hosting resources at rock-bottom prices. Client loyalty suffers and churn goes up once again.
  • Performance limitations: Cramming more webs into one web hosting increases the risk that one greedy site will hog resources and leave the other sites starved of processor power, main memory, and network link capacity. You’ll keep one client happy, but see others cancel their service subscriptions with you.

Hosting vietnam

  1. Value is what counts

But is cheaper pricing the answer, either for your clients or for you as a hosting? Many clients really want value for money and good service, rather than the lowest prices. They recognize that they get what they pay for and that their objectives will be better met by a suitable hosting solution that offers good performance, reliability, support, and overall cost-effectiveness.

Some “plain vanilla hosting” players offer huge amounts of free hosting space. In return, they may oblige their clients to put online advertising on their webs or charge them premium prices for the additional services they need to make a real hosting solution. Neither of these solutions makes much sense to business clients looking for value and hosting solutions that let them reach their purposes.

  1. Differentiate with business benefit instead

Factor in the other items that clients need to make webs effectively run, like easy-to-use administration, integration with databases and additional modules, and 3 things happen.

Basic web hosting Vietnam costs for webs become a smaller fraction of the overall end-client budget and price pressure on hosting costs lessens. Business goals become more of a priority, allowing you to emphasize value rather than cost. You get more changes to offer value in the form of a complete hosting service that meets clients’ demand, rather than trying to undercut competitors’ prices.

In conclusion, cheap hosting services are not the answer, either for your clients or for you, the hosting. Value for money hosting services is a better way to go.

 

tags: colocation in vietnam