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. However: 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) ; or
- 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.