Why is Contabo so Cheap?

Do you plan to buy a Contabo VPS? Are you concerned about Contabo’s low prices? Don’t worry; we’ll address all your Contabo-related queries.

By the end of this article, you will be aware of Contabo use cases, factors to consider when purchasing a cheap VPS, and the pros & cons of using Contabo hosting.

But first, let’s answer your main question, “Why is Contabo so cheap?” in our next section.

Why is Contabo so Cheap?

Contabo is exceptionally cheap, especially for high Virtual Private Servers (VPS) configurations. The host mainly focuses on the needs of VPS users requiring high server configurations.

Thus, Contabo does not give importance to solving the problems of novices because its servers are primarily occupied with business applications run by experts.

These apps have more commercial value, pay regularly, and have very low chances of migration. All this helps Contabo reduce its operating costs.

Reasons for its cheap prices

Below are some additional reasons for Contabo’s cheap prices:

• Like many competitors, the host owns its data centers and hardware instead of renting or using colocation facilities. It helps Contabo drastically reduce its operational costs.
• It uses an open-source server solution, Proxmox, instead of premium enterprise solutions like OnApp.
• Contabo saves a huge amount of money by not hiring much technical support staff. It offers unmanaged servers under all its plans.
• The host does not provide server backups.
• All Contabo CPUs are virtual, so they are shared between many users. It impacts the efficiency of storage too.
• Its affordable VPS plans offer limited bandwidth between 100 – 200 Mbps.
• Contabo uses older single-core CPUs that deliver slower speeds.
• The host does not provide customer support outside of office hours.

Like OVH, Contabo mainly focuses on a single hosting element: the price! Thus, comparing its hosting features or server performance with big players like Vultr, Linode, AWS, and Digital Ocean would be unfair.

Contabo use cases

Now that you know “why is Contabo so cheap?”, let’s look at its suitability:

You should use Contabo if:

• You need a server for non-critical projects.
• You can create backups outside Contabo (even when they offer snapshots).
• You plan to perform a custom server setting to host your project.
• You have enough time to deploy your VPS.
• You want to carry out web application testing only at the non-production stage.
• Your queries are not urgent, and customer support is not very important to you.

You should not use Contabo if:

• You want to host a large app for your business.
• Server reliability is one of your major concerns.
• You don’t have enough time to deploy your server. Or, you require it only for a short duration.
• Your application demands Graphics Processing Unit (GPU).
• You plan to manage your virtual resources dynamically, like scaling your Software as a Service (SaaS) model.

Other factors to look out for in a cheap VPS

Some additional reasons also contribute to lower prices of any given VPS service, including:

• Market pressure or market saturation.
• Throttled connection.
• Overselling servers to maximize profits.
• Use free or lower-cost management software alternatives like OpenVZ instead of Virtuozzo.
• Keeping minimal profit margins.
• Heavy resource restriction.
• Use of older hardware to minimize capital outlay.
• Devaluation of lower-end services when slashing the prices of higher-end services.
• No frills or minimal service with each hosting account, like offering only a bare server without any control panel.
• Oversubscription of all available resources.
• Running perma-sale on a service i.e. always on sale. The price of such products never turns up to their list prices.
• The product is a loss leader in upselling other high-margin products.
• The host charges an additional amount for any assistance you might require. For instance, Contabo charges you to perform OS reloads.

Pros and Cons of Contabo

Contabo comes with the following advantages and disadvantages:

Pros of Contabo

• The host uses new NVMe storage much faster than the older SSDs, making your app run faster.
• It provides hosting at competitive prices that help you remain within your budget.
• You can easily scale your server resources.
• The host allows unlimited incoming traffic, which is handy during traffic spikes and makes your app fast and stable.
• Contabo has servers across four continents, allowing you to choose the most suitable server location for your project.
• You can choose from extensive hosting plans to match your needs.

Cons of Contabo

• Contabo doesn’t offer good customer support, so you must be self-sufficient to handle all server-related tasks.
• Unlike many of its competitors, Contabo doesn’t have any online chat support.
• You might notice slower performance due to disk I/O (IOPS) issues when you receive a lot of traffic. (We recommend asking Contabo to move your app to another node if you’re unsatisfied with their disk speed).
• Cheaper Contabo servers attract many service abusers. We have seen a lot of Contabo IPs getting blacklisted without our fault.
• Setting up a Contabo server can take about a day. The host activates your VPS only after verifying your ID when you buy a server for the first time.
• Contabo doesn’t have high availability of virtual servers.
• You cannot use a Contabo VPS for your SaaS projects since the host provides no API to order or manage VPS dynamically.
• Contabo offers a short money-back guarantee of 14 days and isn’t fast enough to respond to your refund requests.

Verdict

Contabo is better than all other cheap VPS providers, and we can confidently vouch for it. However, it doesn’t stand close to the big hosts like Linode, AWS, and Digital Ocean.

It is suitable for users not looking for a reliable or super-fast server because the CPU and disk are sometimes slow. Contabo oversells its servers to cut costs and make profits, so don’t expect good performance.

Looking for more Contabo-related answers? Comment your queries below for us to address.

FAQ (Frequently Asked Questions)

Is Contabo trustworthy?

Yes, Contabo is a trustworthy host with two decades of experience in the hosting industry.

What is the difference between Contabo VPS and VDS?

The physical server shares its resources across multiple users in the case of a Contabo VPS, but such sharing doesn’t happen in the case of a Contabo VDS.

Where is Contabo based?

Contabo is a German host based in Munich. However, it has its servers spread across four continents.

Is Contabo a KVM?

Yes, Contabo uses Kernel-based Virtual Machine (KVM) as its standard hypervisor.

Is Contabo good value for money?

Yes, Contabo is undoubtedly good value for money for the features it offers.