I have been searching hosting services in australia, singapore and many other countries but I find USA is only place provide cheapest hosting services, about 5-10 times cheaper than others. How can USA companies can provide such a cheap services?
its because of the stimulus package Obama gave out in some countries I know even internet connection is very expensive. makes sense why a good hosting could be expensive.
Its because in the U.S. a lot of people think they can simply create a webhost and get rich quick. They quickly realize that they don't have a business plan so they lower there prices in order to get customers. So just make sure to get some reliable hosting. -Matt from Hosterbox.com
It's cheaper in the US due to competition and the market.. cheaper price mean higher volume and good satisfaction for longer term.
Because America is a free country, and the coupon, and trial stuffs is a wise way to improve hosting sales, another thing is that the hard drives and internet connections are cheap in America, so they deducted the cost for hosting, and yes, there're many competition.
More competition.. free market!! I remember I bought a couple pine apples the other day, $0.99 each... I can not believe it is so cheap!!! Also, we are having a major deflation going on!!! Fed tries to do a QE2, and pump more into the system~
because there is so many hosting companies to choose from. Its basically a low differentiation industry so they compete through prices.
you can see the price variation in US from all service providers because, there might be tough competition in the market that competitors are offering less than and that goes even more decreased.
Exactly there are a lot of cheap offers, however most of those aren't reliable. Make sure to read some reviews or ask at boards if you want to decide for which host to go!
Yeap lots of competition creates a flooded market and makes prices go down. Just choose someone that has been around for a while because in flooded markets people usually start going broke and pulling out and the guys that have been in it for a while will usually stay while the new guys will usually fold. A 3yr hosting plain with a company that is going to fold next month is rather worthless.
It's because the price to run a hosting company is so low; bear in mind that some you may have looked at are rebadged resellers, if you get to the actual hosting company the price will involve; * Power (and...) * Data Centre Costs * Hardware costs * Bandwidth * Staff costs The basic cost for a service is the power and data center costs. The hosting company will put a markup on this which will cover the rest, PLUS their profit. Power and DCC are relatively cheap compared to some places; this means that they can sell services at low cost. Hardware doesnt really come into the equation because of how many shared services you can sell from one rack, virtual hosting and so on. Also bear in mind that because of competition the margins are squeezed down so much that numbers matter; "budget" providers will fight for pure numbers of customers to push up profit margins whereas higher end and managed services will have more outlay on their own costs (and thus, will me more expensive).
There is a lot of competition that undercut their competitors, so each company has to go lower and lower...
I think maybe there is fierce competition in the hosting business, so most of hosting providers reduce the price to get more customers.
Because America do things on a bigger scale. Host gator is massive and run on wind turbines out in the desert. Something like that anyway. If you do things on a bigger scale you can get the price down a bit like mass production of cars etc
US has a good boom in the field of web hosting.Due to the large no of webhosting companies,it has made cheap due to tough competitions.In Us Webhosting provides an individual business plan so they become rich quickly.