I'm looking at prices of around $39-$49 for 384 MB with 20 GB disk and 350 GB bandwidth. What would this have cost a few years ago and do you see prices heading down each year?
Yes, I have definitely seen prices heading down... However, it's kind of more related to the features and technology going up, than the prices really going down. There's always low-cost solutions available for online business needs, starting as low as free.... It's more what you get for your money that changes. For example, years ago, a VPS would normally go for the low end price of a dedicated server now... But at the same time, websites had less features, used less resources, and took up less space and bandwidth. What you need a VPS for today, the 'old skool' equivalent you could have probably hosted on a reseller account.... My opinion anyways.
It's hard to say what that would have cost a few years ago (possibly 1.5x the price), but they are heading down due to supply and demand. Despite increased demand, there is far more supply to compensate hence lower prices.
Agreed that they are headed down as hardware/ bandwith become cheaper. I also think you could find cheaper VPSs out there if you are so inclined.
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