I believe that many people including myself wonder or have been wondered on how could the web hosting prices of some companies be so low. There must be some catch or their service is scam etc. Asking about cheap web hosting we often get responses such as that if you are serious about your project you would not look for cheap because you would likely run into scam.
What are those "unrealistic" offers anyway? Well, let's take one of a good number of similar examples. I almost picked it randomly. It's really easy to find it since it's practically a trend now. Let our example be PenguinHost.net which offers the following as their professional hosting plan:
2,000 mb storage
60,000 mb transfer
Catch all email
Search Engine Submission
Urchin Traffic Stats
Supports all major web development software including FrontPage, Dreamweaver, Flash, Go Live
No Ads or Banners
SSL 128-Bit Encryption
Password Protected Directories
Custom Error pages
Your own control panel with over 100 features
support for perl, php, mySQL, python, C++
24x7 Tech Support
OC-192 Fiber Connectivity
Datacenter & Servers:
Fully Redundant Backbone Carriers
Diesel Backup Generator
24x7 Network Monitoring
Dual Xeon Processors
SCSI Hard drive system
Now, i know, i copied it from their site. What however is the first to attract our eyeballs are 2000MB storage and 60 000MB bandwith. And it's all for only $9.95 per month or $7.95 per month if payed annually which is $95.40 per year. Is this realistic? Are they scammers? Some may say yes searching only for hosting services with prices of about $20 or above per month as their "professional" hosting that they can really trust. My sure answer to this will be "no". And i know that many of you will probably agree since i believe this trend has become common and it's been already talked about and explained. The hosting prices are dropping. As a reson to this, i wanted to point out to free software such as linux, mysql, apache and php, the so called LAMP combination that rules this market. It is from my opinion the main reason for that prices got so low in the past few years because there are apsolutely no cost in implementing these technologies since it is free software. What we actually pay for when paying for hosting are mainly the server space and maintainence of servers, and not for the software technology that powers them. It is therefore actually more realistic to expect lower prices then high ones. And here is another positive contribution of the free software/open source movements.
Okay, maybe you'll have some more reasons to add for this. Feel free to do so.