The Cost Conundrum: Why Do Gcore Virtual Server Prices Vary So Much?

The Cost Conundrum: Why Do Gcore Virtual Server Prices Vary So Much?

In the world of virtual servers, we’re often faced with a wide range of price points, from shockingly cheap to expensive. Perhaps you’re wondering: what’s behind this price disparity? Are cheaper virtual servers worse, and expensive ones better? Not always! We at Gcore want to take you behind the scenes and share the factors that go into pricing virtual servers, including our own. By the end, you’ll be equipped with a deeper understanding of what drives these prices and be able to make informed decisions about how best to use your budget.

What Is a Virtual Server?

To understand the factors that affect a virtual server’s price, we first need to review briefly what a virtual server is and how it works.

A virtual server is a server that shares hardware and software resources with other operating systems (OS), as opposed to dedicated servers. It operates in a multi-tenant environment, meaning it shares the physical server with other virtual servers, but it still maintains its own dedicated portion of these resources. Virtual servers offer much of the functionality and capabilities of a physical server, but with more flexibility and scalability, and usually at a lower cost. They can be quickly spun up or down depending on needs, making them an ideal choice for many businesses.

Virtual servers can be highly customized to cater to different user requirements. Factors that can be customized include the server configuration, the processing power, storage capacity, bandwidth, memory, software licenses required, geographical location, security, and level of support. All of these factors affect the end price, and with so many factors at play, it’s no surprise that virtual server prices can be so variable.

Factors Affecting Virtual Server Prices

Let’s look in more depth at some of the factors that inform Gcore virtual server prices.

Compute Resources

As the amount of resources and output power increase, so too does the price. Gcore offers 21 ready-made configurations, with the cheapest offering 1 vCPU, 512 MB RAM, 20 GB disk, and Linux based OS from just €3.25/month. Highly powerful options, such as 6 vCPU, 8 GB RAM, 400 GB disk, and Windows OS comes in at €64/month in the Chicago location, for comparison.

For some projects, configurations with high RAM and disk space are essential, but less CPU is required. A tariff plan for this use case might include 2 vCPU, 8 GB RAM, and 200 GB disk. In Sydney, such a plan costs under $30/month when running Linux.

Evidently, it makes good financial sense only to pay for what you need. A provider with many options available, like Gcore, helps you secure the best value for money. Try out the configurator for yourself to explore configuration options and pricing.

Data Storage

Different virtual server configurations can offer different types and amounts of data storage. For example, servers with SSDs (solid-state drives) typically provide superior performance, but can be more expensive than servers with HDDs (hard disk drives.) The latter often have more storage but can be slower. A higher storage capacity, or the use of more expensive and faster storage technologies, can increase the cost of a server.

Network Resources

Virtual servers offer different levels of network resources, such as network bandwidth and number of network interfaces. Selecting higher levels of network resources will usually result in a higher server cost.

Geographic Location

The direct geographical location of the server can also affect the cost. It is more expensive to provide infrastructure in some geographic regions than others, which will directly affect the price of a virtual server. Geographic location affects the cost of a server for several reasons:

  1. Infrastructure and maintenance costs. There exist regional differences in data infrastructure, energy availability, network infrastructure and support levels. Some regions may have a more developed infrastructure, requiring higher server maintenance costs, which are passed on to the client.
  2. Taxes and regulatory requirements. Different countries and regions have varying tax structures and regulatory requirements that may affect the cost of servers. For example, some countries may have higher IT infrastructure taxes or additional data security requirements.
  3. Bandwidth and local shipping. If the servers are located in remote regions, the cost of bandwidth and local shipping may be higher. Data transmission over long distances may require expensive tariffs or more complex infrastructure, which can affect the cost of the server. For example, the location of servers in Australia and New Zealand may be higher due to their relative remoteness.

Bandwidth and Traffic

Regional differences extend to bandwidth and traffic, directly impacting the cost and maintenance of virtual servers. In some regions, unlimited data packages are more common, while in others, data may be more limited and may come at a premium due to infrastructure or regulatory constraints.

The following table shows the specific region and also the minimum traffic in GB that is available for free on the Gcore website when purchasing a virtual server. In the MENA region, the free traffic allowance is double that of the rest of the specific regions. This is due to the fact that in the MENA region, traffic is less expensive to maintain.

Specific regionMinimum free traffic
Asia500 GB
South America500 GB
Australia500 GB
Africa500 GB
MENA (Istanbul, Tel Aviv)1000 GB

Handling a large volume of traffic or accommodating high bandwidth necessitates a robust network infrastructure. This, in turn, requires substantial investment from the provider. Gcore allocates considerable resources to ensure high network performance capable of managing substantial traffic.

Type of Tasks Performed

Your choice of virtual servers should depend on the type of tasks you plan to perform on the server. Cheap options can work well for trial projects or hobbyists, whereas enterprise-level digital businesses may require the compute power that comes with a more expensive choice.

It is important at the planning stage to analyze your tasks and assess the necessary resources in order to balance budget and performance for your specific use case. We invite you to consult with us to choose the most suitable option.

Gcore’s Virtual Servers

Gcore’s virtual servers offer instant access, worldwide coverage, and superb connectivity, ensuring value for money whether you select our cheapest or most expensive option. For all tariffs, regardless of configuration, Gcore offers the following basic options:

  • 200 Mbps guaranteed speed without traffic
  • KVM technology guarantees productivity
  • Support for any operating system (including the option to install your own ISO image)
  • Fast SSD drives
  • Certified Tier III Data Center
  • Excellent connectivity
  • Protection against DDoS attacks
  • 24/7 technical support

Our configurator allows you to explore options across our vast global network. We offer full pricing transparency, because we offer exceptional value for money.

Conclusion

When it comes to virtual servers, one size certainly doesn’t fit all. Pricing can fluctuate based on a number of factors, such as the specific server configuration you opt for, its geographical location, and additional resources you might need. The trick is finding that sweet spot between your project’s demands and your budget.

Gcore’s numerous tariffs and global reach mean you’re sure to find a virtual server plan that meets your needs. Check out the Gcore configurator to explore your options.

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