Pricing evolution of Public Cloud, Bare Metal and VPS at OVHcloud

Since autumn 2025, the global memory market has been going through a major disruption. Although barely noticeable to end users, these developments are radically changing the cost of computer hardware and, as a direct result, the cost of the cloud.

This article will decipher this structural crisis, its real-life impacts, and the strategic choices that OVHcloud is implementing to mitigate its effects.

An industrial shift towards GPUs

Globally, the three major memory manufacturers have redirected a significant portion of their production capacity to meet the massive demand for GPUs, particularly for AI-related and high-bandwidth computing applications.

This reallocation took place without a corresponding reduction in the historical demand for RAM and storage, generating pressure on several market segments simultaneously.

The consequences of this were immediate and noticeable:

• pressure on supply, with reduced stock and extended lead times
• continuous rise in RAM and disk prices since September 2025
• long-term market instability, which is not expected to find a new balance until late 2026

A sustained inflation of memory components

Even after the market stabilises, prices are not expected to return to their historical levels before 2028, the amount of time needed for new production capacities to become truly operational.

This development profoundly disrupts the economic fundamentals of computer hardware, both for on-premises infrastructures and for the cloud. Depending on configurations, the prices related to RAM and storage could increase by 15% to 300% compared to 2025 prices, depending on the volumes of memory and disk capacity deployed.

This change of scale is both abrupt and unprecedented, with no recent equivalent in the global market.

A market under pressure, even with higher prices

Paradoxically, the rise in prices is not enough to secure the availability of components. Currently, to guarantee the delivery of their desired volume of RAM or disks, cloud providers need to order up to 12 months in advance, without being told the final price at the time of purchase.

In practice, prices are only communicated one to two months after delivery, depending on the changes in supply and demand during the quarter in question. This uncertainty places unprecedented pressure on industry players and cloud providers, simultaneously affecting production and distribution.

Towards a new global balance of demand

This situation will inevitably have repercussions on the volumes ordered. Some customers will find the prices too high and limit their investments, while others, lacking alternatives, will continue to place orders regardless.

This interplay of opposing forces should lead to a new global balance, but at a significantly higher price point. Current projections anticipate a 250% to 300% increase in the price of RAM by the end of 2026, compared to September 2025.

Our strategy to soften the blow

In light of this reality, OVHcloud has chosen not to automatically pass on the entire price increase of components to its customers.

For the cloud deployed between 2026 and 2028 (including Public Cloud, Private Cloud, and Bare Metal), the average price increase will be limited – between 9% and 11% – despite significantly higher RAM and disk costs.

To offset this gap, a moderate increase of 2% to 6% is planned for solutions deployed before 2025, depending on the age of the equipment, as well as a change in IPv4 pricing. The latter should not have a significant impact on our customers’ budgets, as the cost of IP addresses is a small share compared to other resources in a cloud project.

Our objective is clear: to maintain pricing consistency across the entire range from 2021 to 2028, and to prepare for a gradual return to normal in 2029.

Continuous investments and developing solutions

Beyond pricing adjustments, this period will be characterised by sustained investments in our solutions and in the customer experience.

Despite the strong pressure from rising component costs, we are continuing to develop our services to provide more value to our customers.

In practical terms, this will result in:

• a gradual strengthening of support mechanisms
• an increase in resources included in certain ranges
• a modernization of our computing and storage infrastructures

These initiatives demonstrate our commitment to not reduce this period to merely a consequence of cost increases, but to maintain a dynamic of improving our services, even in a constrained economic context.

Time frame and implementation procedures

Our clients have already received emails detailing the precise impacts on their services. The new prices will come into effect on 1 April 2026.

Until that date, it is possible to renew services at the current rates for a duration of up to 2 years. In all cases, the new prices will only apply at the end of the current contractual period.

A time of uncertainty and a strategic advantage

We are going through an exceptionally unpredictable period, where market visibility rarely lasts longer than one to two weeks. There remains hope that prices will stabilize on a long-term basis from 2026, so that we can avoid further unfavorable announcements.
In this tense context, having a global supply chain and two internal production facilities is a major strategic advantage. This allows us to continue receiving components and producing servers, while the memory shortage affects a large part of the market.

Our Prices

You will find below our new pricing:
– Public Cloud: Prices below are displayed on an hourly basis and with Linux OS. Please, find on our Prices web page our monthly-consumed virtual machine instances (b2, c2, r2) and Savings Plan options (b3, c3, r3) as well as prices with Windows licences.
– All our VPS, Floating IPs, and Additional IP pricing.
– Bare Metal: The displayed prices correspond to a 1-month commitment; additional discounts apply for 12- or 24-month prepayments. The prices for options are for new orders only. The renewal of options, which has been communicated by email to our customers, will be limited to +10% for disk options and +15% for RAM options.

For existing subscriptions renewed before April 1st, you can secure your current pricing for the full duration of the commitment you choose, effective from your renewal date.

Please note that the following product categories are not affected by our pricing evolution:
– Public Cloud – Compute : Cloud GPUs and Metal Instances
– Public Cloud – Container : Managed Kubernetes, Managed Registries & Managed Rancher
– Public Cloud – Network : Load Balancer, Gateway. Public and Private network traffic remains included.
– Public Cloud – Storage : Object Storage, Block Storage.
– Public Cloud – Analytics : Data Platform
– Public Cloud – AI & Machine Learning : AI Solutions (AI Notebook, AI Training, AI Deploy) and AI Endpoints
– Public Cloud – Quantum : Emulators & QPUs
– Bare Metal : Kimsufi et SoYouStart ranges
– Bare Metal : All storage (Veeam Enterprise plus, HYCU, Back-up Agent, NAS-HA, Cloud Disk Array)
– Private Cloud : All VMware offers, all storage offers (Veeam Enterprise plus, HYCU, Back-up Agent)