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

Since fall 2025, the global memory market has been experiencing significant 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.

In this article, we break down this structural shift, its real-world impact, and the strategic steps OVHcloud is taking to mitigate its effects.

An industry-wide shift toward 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 shift occurred without any decline in historical demand for RAM and storage, creating pressure across multiple market segments at the same time.

The consequences of this were immediate and noticeable:

• Supply constraints, with reduced inventory and longer lead times
• Ongoing increases in RAM and storage pricing since September 2025
• Continued market instability, with no expected rebalancing until late 2026

A sustained inflation of memory components

Even after the market stabilizes, 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 the configuration, RAM and storage costs could increase by 15% to as much as 300% compared to 2025 levels, based on the amount of memory and storage 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 must place orders up to 12 months in advance, without knowing 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 creates unprecedented pressure across the industry, impacting both 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 estimate a 250% to 300% increase in RAM pricing by the end of 2026, compared to September 2025 levels.

Our strategy to reduce the impact

In light of this reality, OVHcloud has chosen not to automatically pass on the entire price increase of components to its customers.
For cloud services 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 2% to 6% adjustment will apply to services deployed before 2025, depending on the age of the equipment, along with an adjustment to 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.

Continued investment and solution development

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

Despite significant 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:

• Gradual enhancements to support services
• Increases in resources included in certain ranges
• Modernization of our compute and storage infrastructure

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

Customers have already received emails outlining the specific impact on their services. The new pricing will take effect on April 1, 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 navigating an exceptionally unpredictable period, where market visibility rarely lasts longer than one to two weeks. There is cautious optimism that pricing may stabilize over the long-term beginning in 2026, so that we can avoid further unfavorable announcements.
In this tense context, our global supply chain and two in-house production facilities provide a significant strategic advantage. This allows us to continue receiving components and producing servers, while the memory shortage affects a large part of the market.

Public Cloud – Compute

• Cloud GPUs

Public Cloud – Containers

• Managed Kubernetes
• Managed Registries

Public Cloud – Network

• Load Balancer
• Gateway
• Public and private network traffic (remains included)

Public Cloud – Storage

• Object Storage
• Block Storage

Public Cloud – AI & Machine Learning

• AI Solutions (AI Notebook, AI Training, AI Deploy)

Bare Metal

• Kimsufi and SoYouStart ranges

Private Cloud

• All VMware offerings

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