Comment by conductr
14 hours ago
Sure, the market may shrink some but it's also relative to alternatives that are also increasing. There's no advice in the article the market is shrinking or that pricing is causing it to. People leaving the market on this type of cost will likely be people that have VPS's as idle resources, like some forgotten subscription they don't use but never canceled because it's <$10 per year. If that goes up to $20 per year maybe it triggers them to cancel it. It's so low cost I know this is a portion of their profit from customers like this, but it's just a business problem to solve and shouldn't kill any provider on it's own.
The comparison to 2000s telcom market does not seem similar at all to me.
$10 per year is extremely rare. $5 per month is common, and if it goes up to $10, a lot of people will still keep it if they're using it.
The provider is still making the same money for the same cost on that pre–existing service, so they might not even choose to raise the price for old customers. They're only losing an opportunity cost, and different businesses weight that differently.