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Hi All,
It’s been quite some time since we introduced our individual subscriptions. The first article on this topic was published back in October 2019. However, our preparations for setting up our cloud environment began well over a year before that. This involved selecting the most suitable hosting platform, acquiring the necessary hardware, and configuring the systems, among other tasks. Our core philosophy was to prioritize offering quality subscriptions instead of engaging in a race to the bottom on pricing. This approach meant that our initial prices were somewhat higher compared to some competitors. We elaborated on our reasons for this in a previous blog post, which you can read here. We even issued a cautionary note regarding some providers on the Nextcloud forum.
When we began, we were using Nextcloud server version 12. With the release of a new major version every 3-6 months, as indicated by the Maintenance and Release Schedule, we’ve since upgraded to a much more advanced version.
Throughout these versions, Nextcloud has introduced a plethora of features and improvements:
AI Integration: The platform now harnesses the power of artificial intelligence, enhancing the digital workspace experience. Read more about this in their introduction of AI-powered digital workspaces.
Talk Feature: Nextcloud Talk has not only been added but has also undergone significant expansions. It now offers voice messages, location sharing, and Outlook integration, as discussed in this blog post.
Functionality & Performance: Many existing features have seen enhancements. There’s the introduction of approval workflows, integrated knowledge management, decentralized group administration, and performance improvements, which are detailed in these articles: Nextcloud Hub 22 and Nextcloud Hub 21.
Dashboard & Unified Search: The debut of a comprehensive dashboard, unified search, and integrated notifications has further streamlined user experience. Discover more about these in the Nextcloud Hub 20 release post.
These are just a few of the highlights from versions 21 to 27 as detailed on the Nextcloud blog. There’s a wealth of other features and improvements in each version. For those who are interested in a detailed breakdown, the changelog offers a comprehensive view. To give you a sense of the scale, every major version introduces between 400 to 800 changes, while minor versions contain approximately 20 changes. Between versions 12 and 27, this totals to a staggering 8,000 changes.
As I reflect on the rapid developments in Nextcloud’s features and improvements, I can’t help but ponder their implications for us who are in the business of hosting such servers. The addition of novel features is undoubtedly thrilling for end-users, but it brings forth challenges for hosting companies like ours.
The increasing sophistication of Nextcloud means ever-evolving requirements. We’ve always endeavored to match the resources demanded by Nextcloud, yet we’re witnessing that the current CPU requirements exceed our current provisions.
Moreover, while inflation in the Netherlands/Europe, our home base, has skyrocketed –rising to an astonishing 14.5% in September 2022- we remain wary of modifying our pricing. We’ve already positioned ourselves as a premium service, emphasizing quality over being the most affordable option. Also, our current pricing isn’t so far off anymore compared to our existing competitors, so we think were on the right path balancing service/pricing.
Remarkably, since our inception, we’ve never increased our prices. Accounting for the average 2% annual inflation, we’ve effectively been reducing our rates year after year. By 2022 standards, we should have adjusted our pricing upwards by at least 10%. Yet, we are committing to not increasing the prices.
This decision, however, necessitates other adjustments on our end. Small instances, which are particularly resource-intensive, are becoming unsustainable for us. We’ve observed a significant number of these instances encountering CPU and memory shortages. Given that our smallest instance offerings were priced as affordably as possible, they now operate at a loss for us. Currently, this deficit is offset by customers opting for larger storage capacities and by our business clients. But without strategic changes, this compensation model may soon become untenable. It’s also worth noting our commitment to offering a free plan, a service that’s rapidly growing in popularity. Our latest statistics show a staggering 2,000 users registering for our free plan in just two weeks, with 754 of them actively using the service daily!
Upcoming Changes to Our Hosting Plans
As we navigate the ever-evolving landscape of hosting in a rapidly changing digital world, we’re always looking for ways to ensure that our services provide you with the best possible experience. Here’s what’s in store:
Transition to a 100GB Minimum Plan: Starting from the 9th of november 2023, our base offering will be a 100GB plan. This enhancement will enable us to allocate more resources, significantly improving the foundational performance when compared to the current 10GB, 25GB, and 50GB plans. Once this change is implemented, existing users will have 42 days after their current subscription ends to either upgrade or choose an alternative hosting solution if the updated storage size doesn’t align with their needs.
A Special Offer for New Users: We’ve always valued the ability for potential users to test our services without a significant upfront investment. The 10GB plan was an excellent opportunity for many to gauge our hosting quality and customer support. In preserving this sentiment, we’re excited to offer the 100GB plan at the same price as the 10GB plan for the first six months. This ensures that newcomers can still “test drive” our service without any change in initial cost.
We genuinely hope that our community understands the necessity behind these changes. Our primary aim has always been to provide superior service, and these alterations align with that mission. However, if you have concerns or require clarifications, please don’t hesitate to reach out via our contact form.