Is the RAM shortage killing small VPS hosts?
9 days ago
- #Regulation
- #AI Impact
- #Tech Industry
- RAM prices have surged due to AI demand, with DRAM producers prioritizing High Bandwidth Memory (HBM) for AI hyperscalers over consumer DRAM.
- Small VPS (Virtual Private Server) hosts face existential threats as rising RAM costs mirror the decline of small ISPs in the 2000s due to Big Telecom lobbying.
- In the 2000s, FCC policies initially mandated line sharing (unbundling) for DSL networks, fostering competition, but later reversals led to the collapse of 7,000 small ISPs.
- Telecom monopolies emerged as Bell companies stopped sharing infrastructure, while cable providers like Comcast avoided regulation, stifling competition and innovation.
- Today’s VPS industry differs from the ISP crisis: DRAM producers aren’t legally obligated to supply DRAM, and VPS hosts rely on standard infrastructure shared across industries.
- If small VPS hosts disappear, developers and sysadmins may face limited, expensive cloud options, disadvantaging budget-conscious users like students and small businesses.