28Jan, 2020

Price break in licensing the most popular storage software

Last week, cPanel announced a new pricing and licensing structure, which can multiply license fees.  One of the most widely used web hosting and email management software, cPanel, last week announced a change in licensing structure from September 2019. The original announcement: https://t.e2ma.net/message/2u6my9/mim6ohb 

So far, the largest package has cost 45 USD per month per server, which serves an unlimited number of users. In the new licensing structure, the monthly fee is 45 USD per server, but it covers only 100 user’s expenses. Those over 100 users will be charged 0,2 USD/user/month.

The specific numbers for example on a server serving 1500 users: 

  • License fee until 31.08.2019 45 USD/month 
  • License fee from 01.09.2019 45 + 1400*0,2=325 USD/month 

The price increase is more than 700% in this case.   

Many web hosting providers are working with high-performance servers, that can serve multiple users. So the rate of the price increase can be higher, depending on the provider’s infrastructure.

Of course, this doesn’t mean, that all web hosting providers raise prices multiple times, but it is likely, that the users will pay the additional costs. The license of web hosting software is almost the lowest cost also besides the price of human resources and hardware, but this price increase already affects the annual or monthly fees.

Many companies are already looking for an alternative to change cPanel, to eliminate drastic price increase.