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: Code: 2,000 mb storage 60,000 mb transfer Unlimited Hits Unlimited Emails Unlimited aliases auto responders web-based email Catch all email mailing list Anti-spam feature Shopping Cart Search Engine Submission Message Board GuestBook 10 Databases Unlimited Subdomains Urchin Traffic Stats Real Audio/Video Supports all major web development software including FrontPage, Dreamweaver, Flash, Go Live No Ads or Banners SSL 128-Bit Encryption SSH Access Password Protected Directories Custom Error pages yourdomain.com cgi-bin Your own control panel with over 100 features support for perl, php, mySQL, python, C++ 24x7 Tech Support 99.9% Uptime OC-192 Fiber Connectivity Regular Backups Firewall Protection Virus Protection Datacenter & Servers: Code: Fully Redundant Backbone Carriers Diesel Backup Generator 24x7 Network Monitoring Cisco Routers Dual Xeon Processors SCSI Hard drive system 1000MB Ram 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.