cPanel insane price hike to affect the end user

cPanel, the most popular and widely used control panel for web hosting has recently announced their new pricing structure which shook the entire web hosting industry. Without any prior notice, the new policy was implemented giving no time for web hosting companies to remodel their business model.

The company changed its old pricing structure from a monthly/annual fixed amount basis to per account basis. This means that earlier was a dedicated server cPanel license which would cost around $45 which allows you to host unlimited accounts on it, with the new policy is charging $0.20 per month for every single account along with the base price of $45 for accounts above 100 accounts.

 

For an average doing web hosting company that hosts around 1500 (let’s say) accounts on each server, here is the price difference of old expenditure and the new expenditure.

 

Before New Pricing

Server Expenditure – $300 per month

cPanel expenditure (1500 accounts) – $45 per month

 

After New Pricing

Server Expenditure – $300 per month

cPanel expenditure (1500 accounts) – $325 per month

 

 

That’s almost 8x times the old price! Some companies even complained about 20x times price increase with the new pricing policy.

 

After the new pricing implementation, there was a complete backslash from web hosting companies throughout the globe yet no words expressed from the cPanel staff. Recently, the company was bought by Oakley Capital.

 

Other alternatives include DirectAdmin, Plesk, VestaCP, etc. which are more command based and difficult for newcomers after using cPanel from so many years.

 

Whats going to be the impact of this new pricing?

  • Increased prices for Reseller Hosting.
  • No more “Unlimited Accounts” plans.
  • Closure of small web hosting companies.
  • Shift to other control panels mentioned above.

 

As a result of this, web hosting companies will increase the prices for reseller hosting and the same will be collected by the reseller from the end user. Hence, the end user will suffer more than the web host. Getting their business online on the internet will cost more.

 

How does this affect shared and reseller hosting?

As a company that has provided reseller and low cost hosting for several years, this affects us in a big way. 

cPanel and Oakley are getting a lot of "negative feedback" (to put it nicely) from a lot of hosts following this announcement so we are all hoping they either revise the pricing or cancel the change altogether. Is this likely? Probably not but there is still a little time before the changes come into effect.

We are still working on a plan but we do expect changes to our reseller packages, it simply isn't possible for us to continue providing unlimited cPanel accounts under the new cPanel pricing.

We have only a few options to do.  Change Control Panel from cPanel to Other Panel or add that cost per month to your every cPanel. Mostly not more than 500 LKR  extra per annual (per cPanel). We still have to decide on the specifics but would also love to hear your feedback. 

There are still several weeks before the changes come in to effect and we're investigating all possibilities. Your feedback will help us decide the best way forward and we will be sure to keep you updated every step of the way.

 

Whats your thoughts? Do share in the feedback!



Thursday, July 4, 2019





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