Cairo, Egypt -- (SBWIRE) -- 11/20/2013 -- Recently OVH, one of the most respected European quality budget providers of hosting services, has stopped selling all dedicated server rentals. The move comes after its new line of servers was released at the same price point of the previous generation of servers they sold. The problem is that many of their existing clients opted to upgrade their servers to the new lines leaving OVH with excess inventory of older hardware. OVH explained that such internal cannibalization of sales when new generations of hardware are released is always expected but that this time it was excessive enough to warrant stopping sales until they revise their strategy. This is very important to OVH since they are in the middle of expanding their operation.

This does not come as a surprise, as the usage of virtualization increases, so does the ease of moving your web site or web sites from one server to the other and thus the ability to move to newer hardware as it becomes available becomes very easy.

One of OVH's clients has published an open letter to the CEO of OVH on his personal blog

http://ehabheikal.net suggesting a temporary fix while OVH's CEO finds a way to solve the turnover dilemma. The solution is simple, sell the inventory that has been “turned over”. Since OVH is a budget provider, selling their older hardware at the older price points is still competitive with most other providers. This solution is better than no sales at all, and will not affect the final outcomes and will help them manage old inventory. Yes sales will be slower, but it will be much easier selling such older inventory now, than it is trying to sell it later.

About Ehab Heikal
Ehab Heikal is the CEO of El Motaheda web ( http://www.elmotaheda-web.com ) an Egyptian web design company that provides managed hosting as a part of its services to its clients. El Motaheda Web has been a user of OVH services for over 3 years and has been providing managed hosting for its web design clients for over 10 years.