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WHM®/cPanel® new licensing prices

The web hosting industry is only talking about it since a week! WHM®/cPanel® announced with immediate effect the following:

no more yearly license

any server having over 100 cPanel accounts will incur an additional fee of US$0.20/month/account, or US$2.40/year/account.

This does not affect any web hosting provider having an account density of less than 100 cPanel accounts per server. Όμως: it affects all providers relying on a false economy of scale.

Let’s take an example of a provider having 1,000 cPanel accounts per server. Before the change: the licensing cost was: US$45/month. After the change the cost is now: US$45 + (1,000 – 100) x US$0.20 = US$225/month.

Affected providers will either:

  • temporarily absorb those costs (unlikely for small margin providers) ; ή
  • increase their prices immediately.

We welcome this move by WHM®/cPanel® because:

  • it is fairer for WHM®/cPanel® to collect a license fee per account ;
  • it is normal that the end-user pays for the software use on a per account basis ;
  • it will finance software improvements & development in the long run ;
  • it will equalize the competition between web hosting providers ;
  • it will flush out of the market any abusive providers overloading a server with an infinite number of cPanel accounts ;
  • it will reduce the incentive to provide reseller plans into the market ;
  • it will force customers to merge cPanel accounts when necessary & avoid any waste ;
  • it will increase the competition with other control panel software.

A word of warning to all: be sure to have a backup outside of your web hosting provider on which you have full access. Some end-users and providers will be unable to financially bear the increase. You can contact us if you need any backup.

Reference:

https://blog.quantumhosting.cloud/wp-content/uploads/2019/07/cP_Store_Licensing_Guide.pdf

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