17 Aug

More details on the cPanel price increase

So, the great cPanel Price Increase of 2019 is scheduled to go into effect in just over two weeks, and, not so shockingly, details are still a bit slow in coming.  Officially the word we’ve seen from our license distributor is “The pricing you saw previously is valid, that’s what we’ll be charging as of September 1.  As for any sort of volume discount or any details beyond what was in the original announcement, we’re still waiting for that information ourselves.

Short version for us is, that as of right now, cPanel licensing goes from approximately 6% of our cost per server, to about 18% of each server.   This does not include CloudLinux, Fantastico, or any other software we license for our server fleet, just cPanel itself.   cPanel by itself will, after September 1, cost us more per server each month by itself than what we pay for all the software we license for a given server today.

The good news for our clients is, we’ll be absorbing that cost directly.  We have no web hosting plan pricing changes scheduled or planned as a result of the cPanel cost increase.

Long term, we’re honestly still a bit worried about what this pricing model change is going to mean for cPanel in relation to the industry as a whole.  cPanel has long maintained a market dominate position simply by virtue of being the “best of the cost effective control panels”…  Starting September 1, they’re kind of moving themselves out of the “cost effective” category for a number of business models, and based on the rumblings we’re hearing inside the industry, we suspect you may see a spike in popularity and/or new Control Panel options entering the market.

For our part, we’re going to keep an eye on the situation as it evolves and see how it all shakes out.  But in the meantime we’re maintaining course for our clients.