cPanel Price Hikes Impact On Shared Hosting Companies

So a few days ago cPanel/WHM made an announcement that they were changing their pricing model, which was not  happily received by the web-hosting community. In their statement they are saying that they are making it easier to be a cPanel customer 

“Our goal is to be as transparent as possible with our prices. We want to make it easier to become a cPanel customers. Additionally, it is important for us to provide licenses that target smaller instances, opening up a new revenue opportunity for our customers.” cPanel.net

cPanel has shaken the web hosting community with its new pricing model. They have changed their pricing  model from per server pricing to per account pricing. This is a major blow for small shared hosting businesses, small to medium businesses have few options to sustain in business. However it’s going to make running a website a bit more expensive than before.

So if you are or want to be a cPanel partner and you were paying $11 per cpanel license for each server and running 1000 websites , you will have to pay something close to $122, That’s approximately a 1000% price increase.

According to their statement here is a breakup of a 1000 websites

  • $32 for 100 Accounts
  • $0.10 for each for 900 accounts

The New Pricing

The pricing is different depending on the number of accounts the price for the end user is higher than that of cPanel partners 

General Pricing

  • For 5 accounts  - $20/month
  • For 30 accounts - $30/month
  • For 100 accounts - $45/month then $0.20 for each additional account

cPanel Partner Pricing 

  • For 5 Accounts - $12.50/month
  • For 30 Accounts - $17.50/month 
  • For $100 accounts - $32/month then $0.10 for each additional account

The Major Impact on Web hosting Community

Over the years many people have been relying on cPanel as the goto platform to manage their websites and they had gained a lot of market share. cPanel is the industry leader of turning a standalone server into a fully automated point and click hosting panel. According to Similar Tech  they are said  to be powering 197,926 websites.

 

cPanel’s popularity is because of its integration with Softaculous, LiteSpeed, PHP Selector, JetBackup, CageFS, CloudLinux, Imunify360, and much more. This has helped cPanel become faster, reliable, secure, and feature-rich.

Yes it’s true they are behaving just like any other monopoly and there are a few options  left for the hosting providers.

A lot of cpanel user have reacted on social media with aggressiveness threatening even to switch to other panels.

So who is affected most?

This is going to be bad for shared/reseller hosting providers and license holders in price-sensitive countries like Latin America, India, and other SouthEast Asian and at most African countries.

Should you  stick with cpanel?

Yes of course with their easy to use platform that has been used for more than 20  years, it’s not an easy process to just switch to a totally new control panel bit here are some pros and cons.

Pros:

  • cPanel has innovated over years with a user-friendly UI and a huge number of integrations
  • Less time to spend on customer support
  • No need to migrate data and involved in the risk of data loss
  • You will avoid downtime caused while migrating data

Cons:

  • With no annual billing, you will face the hassle of monthly invoices, lack of funds, etc.

Substantially increased costs may either make business unviable for a few or the end clients will end up paying extra for these additional costs.

Adjusting the prices to meet the new model

If you’re choosing to stay with cPanel, the only solution is to re-evaluate your pricing structure. Only people with 100+ accounts will be hard it. You can transfer the extra 10/20 cents charges to customers.

However, be sure to properly communicate the price changes to customers.

cPanel Alternatives

There are several talks around the market to shift to other hosting panels.With this unexpected change, people have already started finding alternatives. Some of them are:

    1. DirectAdmin
    2. InterWorx
    3. Virtualmin/Webmin
    4. VestaCP
    5. ispConfig

But due to non-familiar environments and complicated nature of the said Panels would be tough for newcomers. 

What’s Next?

cPanel being a monopoly whose family includes WHMCS, Plesk and many other famous products are expected to follow the same soon.

What’s going to be the impact of this?

    1. Being on the internet is going to get costly with immediate effects.
    2. Shut down of small web hosting companies.
    3. Dark future ahead for Master, Alpha & Super Alpha resellers.
    4. End to the term “Unlimited Accounts”.
    5. As per a thread on a famous forum, around 90% of hosting companies will be affected badly.

At the moment, we have not yet decided how we are going to tackle this issue. This was completely unexpected and devastating news to hear. Our next announcement would surely be arduous and unpleasant news for you to hear.

Conclusion

As a web-hosting company based in Africa  Zimbabwe we are affected the most we have few options to choose from  so that we remain competitive and at the same time not affecting the quality of service for now we are sticking with the new pricing model but  we are planning to work on a customized version of an open source panel(not yet decided which one) for now we just have to embrace the bumpy ride and let fate decide the next path. All we hope for is mercy from the industry giant to adjust its pricing so that the market is favorable for all sizes of companies around the globe.

If you have a different view or ways other hosting companies can deal with this issue at hand please share in the comment section below. Cheers!

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