Internet Solutions Price Increase

[HitmanV]

And so it begins.

1 February 2016
Dear Client
RE: Impact of current market conditions on products and services
At Internet Solutions we pride ourselves on bringing you the most innovative products and services to exceed your
business requirements. In doing so, we partner with local and global technology leaders to deliver our services.
The severe devaluation of the South African Rand (ZAR) against leading currencies (34% against the USD during
2015) and inflationary impact on our input costs has significantly impacted our business. We endeavoured to
protect our clients from pricing volatility and where possible, implemented measures to minimise the impact of price
increases.
Unfortunately maintaining existing pricing for connectivity and cloud services in 2016 is not sustainable. Following
an in-depth internal review, we have decided to increase pricing for connectivity and cloud services.
For connectivity services an increase of 4,5% applies. Note the following connectivity services are excluded from
this price increase:
1. Internet DSL product range
2. Internet Mobile Broadband product range
For cloud services an increase of 12% applies. Note the following cloud services are excluded from this price
increase:
1. Voice products
2. Bulk SMS
3. Public CaaS
4. Fax
5. WebEx
6. Consumer virtual machine
The revised pricing will take effect as of 1 March 2016.
Should you have any queries please feel free to contact your Client Manager.
Yours sincerely,
__________________________

maybe i need to get my own static IP now since its all the same price, HELLISHLY EXPENSIVE!

 

[DJ...]

It's incredibly irresponsible to publish the COO's personal contact details...

 

[Domains.co.za (Wayne)]

And so it begins.

@HitmanV, you are quite correct, we had to provision additional cloud nodes mid-January due to our cloud growth and all the new hardware came in at just over 30% increase over what the costs of the same hardware was in mid-November.

Personally, I think the biggest cost increase to hosting companies and alike will be the monthly recurring licensing costs that have suddenly jumped based on the fall of the Rand against the US$.

 

[HitmanV]

It's incredibly irresponsible to publish the COO's personal contact details...

Agreed, I should have removed that.

Personally, I think the biggest cost increase to hosting companies and alike will be the monthly recurring licensing costs that have suddenly jumped based on the fall of the Rand against the US$.

I've been renting the notorious Zimbra mail service and have had quite enough of it, a price increase is enough to push me to build my own server and stick it in a data center somewhere, or get myself a static IP somehow.

This economy is causing ball-ache in my own backyard now. Time to adapt and get creative.

Thanks for listening to my rant

 

[bekdik]

Will price inceases such as this apply to Office 365?

 

[kianm]

Got one of those letter too, will wait and see next month

 

[MagicDude4Eva]

So you guys do not have any contracts with cost-containment clauses in place? What you should factor in is that although the USD-ZAR dropped YoY by a good 35%, it should then also be considered that bandwidth costs dropped over the same period of time.

If you have not been able to fix costs as part of a contract with quarterly reviews (and option for price/offer adjustment) then you are doing something wrong. IS has been great with us, but I know another service provider who still charges their client R25/GB bandwidth (it is now sub R1/GB) and the client is wasting several million a year.