As we expand our cloud portfolio and work to improve the resiliency and reach of our network, we face the reality of also evolving some of the economic fundamentals that make this expansion possible, while staying true to our core mission of making cloud computing affordable and accessible.
As a result, we want to let you know about updates we are making to our pricing. Some of these changes will provide new, lower-cost options, while others will raise prices for certain products.
Which services will have new pricing?
We are increasing prices for some compute instance types and additional IP addresses.
- The price of Shared and Dedicated compute plans will increase by 20%. Our shared Nanode plan remains unchanged at US$5 per month.
- Additional IPv4 IP addresses will increase from US$1 to US$2 per month. IPv6 addresses remain free.
- Reduces egress overage costs from US$0.01 to US$0.005 per GB (up to 1PB per month) applied across all of our existing core data center locations.
Why are we making these changes?
Akamai faces the same macroeconomic headwinds of growing costs for data center space, energy, and hardware as other providers. We resisted making any changes to our offerings for as long as we could. We believe that this pricing change reflects the new market reality, but we will continue to deliver the highest of standards, capabilities, and performance at the best prices our customers have come to expect.
We know Nanodes are important to many of our individual customers. Despite our costs going up, we made the decision to keep our Nanode pricing intact. And while we have increased the prices of our Shared and Dedicated plans, our prices are still 60% lower than the big hyperscalers’ prices and in line with or lower than the prices of many of our other competitors.
Cutting egress pricing in half
When Akamai acquired Linode, we promised to leverage our content delivery network (CDN) economics to aggressively drive down the price of egress, as it was one of the biggest pain points we heard our customers were facing when moving to the cloud.
High data transfer rates have become a point of friction for the free movement of data, often used as a lever to lock customers into a single provider. High data transfer fees are also one of the drivers behind the European Union’s push to enact policies that foster greater flexibility of choice for cloud services.
So, while we’re increasing prices in some of our compute plans, we’re also driving down the pain of data transfer by cutting our cloud egress costs in half — on top of the already large amount of free capacity that we already offer.
Akamai’s scale not only gives us the ability to scale our new cloud computing services around the world, but allows us to apply that scale to cloud data transfer and offer significantly discounted rates compared with other cloud providers. The new pricing structure for egress sets a new bar for the cloud computing industry.
When will the new prices go into effect?
The new pricing will go into effect on April 1, 2023.
Improving your cloud experience
As we highlighted in our recent announcement introducing Akamai Connected Cloud, we have been hard at work to scale our global network and infrastructure services. We’re also continuing to invest in our cloud computing services, and we’re excited about the new and improved services on our roadmap.
- Network updates to connect existing core sites to the Akamai backbone
- Capacity improvements and the introduction of new core and distributed sites
- Recently released certifications for ISO, SOC 2, and HIPAA standards compliance
- Product updates and global rollout for additional cloud primitives
Find out more
To learn more about Akamai Connected Cloud, please visit our web page. To view the updated pricing table, visit our compute pricing documentation.
Comments (60)
“And while we have increased the prices of our Shared and Dedicated plans, our prices are still 60% lower than the big hyperscalers’ prices and in line with or lower than the prices of many of our other competitors.”
Yeah, until you catch up with them. Thanks?
The price of Shared and Dedicated compute plans will increase by 20%.
it’s not much?
This is ridiculous, prices for these resources go down, not up. This is simply a cash grab and will likely see me going to another platform.
Instead of prices going up, you should create a ultra-nanode $1 a month plan to make it easier to sell hosting services to make each ultra-nanode a single client, without making virtual hosts….
For a single website, a nanode is very powerful.
Why put the same prices as Digital Ocean? Don’t know that business model but I think better price than competition help to have more customers.
🙄
Raising prices 20% with one month notification looks quite unfriendly. We are all experiencing the economic crisis, but not everyone can raise rates 20% from one month to another without loosing all their customers.
I hope that you don’t lose all your customers but… There are other options in the market and you have now give a reason to check them proactively, no matter how long we have been using your services, well Linode, it’s clear that this is the first proof of what was going to happen with Akamai purchase.
The old “small company” Linode was good enough for us. We don’t need you to
“expand [y]our cloud portfolio” and any of the costs that come with it (as you say in your first paragraph).
We had an office bet about how long Akamai would take to raise prices – and it looks like the people in the “one year” pool are the winners…
Shawn,
Raising rates by over 20% (when you factor everything that is being raised) and only giving a month’s notice is not just un-partner-like, but instead more of a company that believes that by giving no time, people are left with no choice except to accept. You could have elevated the bar and had your increase, if you would have had the respect for your partners and gave us time to adapt. But, the way this was handled shows that you really do not care how it affects the rest of us, and furthermore shows you could do this at any point in the future. You just set a new precedent on how Akamai-Linode operates.
From most other companies, the above would have been the norm, and even expected. But, from Linode/Akamai, it showed that your new directions are only there to serve your interests.
You just showed your hosting partners your true colors.
Congratulations on putting Linode and Akamai now above the likes of Oakley Capital (cPanel, whmcs, Plesk, etc.) for companies service providers are looking for alternatives to.
“Shared and Dedicated CPU plan prices will increase by 20%*.”
times to leave….
This is astonishing! A 20% increase?? I had suspected when Akamai purchased Linode, there might be a price increase – but crossed my fingers there would not be.
This will be unacceptable to my clients as naturally, I will have to pass this increase on, so naturally, they will be going elsewhere unless I go and find something else.
This may be disastrous for you as many loyal Linode customers won’t stay loyal with such an outrageous price increase.
If I wasn’t too lazy, I’d simply move over to a competitor. I was paying for the $20 plan just for the heck of it, but as of this announcement I’ve simply reverted back to a Nanode. Thanks for making me save money I guess, but if I ever get some free time and stop procrastinating, I may be swayed to take my business elsewhere over this aggressive price hike coming out of left field.
getting the same vibes as playstation starting to charge for online services only because microsoft was doing it as well.
and DOs prices are higher so why not just bump Linode’s as well 🤷♀️
Most other VPSs are not raising their rates. This is a cash grab and I’m going to migrate out of Linode/Akamai. Good bye!
Akamai running another company into the ground.. Bumping prices 20% why? Are you giving everyone a 20% raise? Doubtful, another company looking to pad shareholder pockets.
RIP Linode…
I’m not suprised by announced price increases. Nearly every cloud compute provider has been forced to do it at this point. And the email is not wrong, Linode was priced siginificanly below most of their peers. About 10-20% below.
I would have rathered additional corporate return was sourced through the pricing on innovative new features and the likes, that would have been more sustainable but also more work.
I expect this will cost Linode less than 20% of their service base in the short term, long term however it’s likely to act as a trigger for future egress. Just look at DigitalOcean after their price hike.
Bit of a change from the “old” Linode, where the news announcements were usually about adding additional resources to existing plans, at the same price points.
Not unexpected… but oh well.
This is feeling more and more like a hostile takeover. You are extinguishing the brand which had so much loyalty and trust, especially in the home power users and Linux enthusiast markets. “Akamai’s Cloud Computing Services”, No. We want “Linode’s Cloud Computing Services.” Even adding “An Akamai company” at the end would be better.
Now, you are hiking the prices 20% with ONE MONTH notice, are you insane?
“We know Nanodes are important to many of our individual customers.” And the Linodes aren’t?
“our prices are still 60% lower than the big hyperscalers’ prices and in line with or lower than the prices of many of our other competitors.” It really feels like you are saying this to make yourselves feel better. This sentence wasn’t necessary and honestly it really just makes me think “For now, yeah.”
Linode was so appealing to us because it was a very likable brand, with a fantastic interface and it was not attached to any giant company.
I trusted Linode, I have never trusted Akamai. Embrace Extend Extinguish.
Totally agree!
20%??? Are you serious? ??
Isn’t the point of the economy of scale to drive costs down? I had expected that the merger would provide the benefit of a stronger infrastructure while retaining affordable prices. Simplicity and cost-effectiveness are the main reasons why I chose Linode in the first place. As a loyal customer for many years, this sudden and unfair price raise is disappointing.
This price is very ridiculous, but anyway, please do not change the nanode plan!
This is really upsetting. Linode member since 2012 and never woke up to an email casually mentioning all prices will be inflated 20% in a month.
Akamai, if this was really necessary you’ve got to explain it better to me. I’m guessing it’s not, so I’ll work on moving my Linode resources to a more in-touch provider. I’ll also remember the sprit of the Akamai brand when advising others on their cloud investments (especially the larger ones).
Announcing a 20% price increase with 1 month’s notice is not only indicative of who Akamai is, but antithetical to what Linode stood for.
A total snake move.
Planning a way out, why? Sooner than later there will be another 10% increase.
I guess this is the beginning of the end. Time to plan another move I guess
That’s me gone.
Thanks but no thanks.
These increases are ridiculous but, the explanation received by mail, with less than a month’s notice, is even more stupid.
To define the increase as “a challenging financial climate with rising costs for data center space, energy usage, and newer hardware,” I would call it silly, as the prices of these resources fall. The costs mentioned have absolutely no influence on this type of technology. This is simply an unwarranted and senseless withdrawal of money from our pockets.
All right. Linode was already 40% to 60% more expensive than the competition in the medium to long term. Now Akamai has simply gone out of business, costing 60% to 80% more. I predict SysAdm’s laziness in justifying a move will be offset by the economic factor.
https://www.mvps.net/?aff=32314
RIP Linode
Shawn, raising rates overnight t the tune of 3x inflation on the lower end, 100% on the higher end and you are touting anything?
Doubling the price of ip addresses, when you CANNOT EVEN offer ip addresses that are not on an real-time block list (RBL)?
Keeping Nanodes at free is further insult to those that have partnered with you on a business level.
Linode and Akamai just proved that they are NOT a partner to anyone, other than rich startups and public tech companies.
This is from your own Linode/Akamai “Why Choose Us” page:
PREDICTABLE PRICING
We pioneered the predictable flat pricing model for cloud computing. Imagine: No more anxiety over hidden costs and opaque pricing calculations that show up in your monthly bill. Our promise to you is to make pricing easy to understand and budget.
How are minimum 20% increases over the course of 1 month predictable in ANYONE’S eyes? Even your own? Anyone with more than a few ip addresses are more likely to see their median increase well over 50%!
Price increases are understood and even expected. Increases like this are borderline predatory, because you know full and well that most businesses are not able shift, nor have any pull to make them more manageable.
You made it clear without any reservation or doubt that Linode and Akamai just wish to be a commodity, rather than bilateral business partners. At this point, Linode is JUST ANOTHER VENDOR.
I thought about the migration from DigitalOcean to Linode. But after one month of testing, now I see these big changes from Linode to Akamai, from a lower price to a higher price, and of course I changed my mind and am looking for another place for my infrastructure. Eh, good was Linode’s product, saaad 🙁
Saí da DigitalOcean para a Linode para fugir da alta de preços. A Linode/Akamai não se compara com a Digital Ocean hoje, em qualidade de serviço prestado. Sendo assim, se for para pagar o mesmo, retornarei para a Digital Ocean.
Obrigado pelo aviso prévio de 1 mês.
I feel as though you’re trying to lose business. With only a month’s notice is unfair to customers. I don’t see how you’re 60% lower. I have a few Linode 4 GB at $20 (soon to be $22) and roughly 15 Nanodes, if you raised it that 60% less you claim, you’d be 75% higher than DO.
For the price increase, you could at least throw us some more space. Or use lube before hitting us with less than a 30-day notice.
Good thing my asymmetrical 3 Gig fiber line will be installed at my business in April. Gives me a reason to not be lazy and fire up my servers and I’ll move all my clients to my business.
Price increases were somewhat expected following the takeover.
If you raised 10% on three months’ notice, everyone would be okay with that.
But 20% next month is a stab in the back.
What a shame.
Going to need my pre-paid balance refunded back to my card. This is wholly unacceptable. “PREDICTABLE PRICING” my ass.
Hey there – if you have a credit on your account you’d like refunded, we’d be happy to help. Feel free to open a Support Ticket and let the Support Team know you’d like a refund.
I’d been considering leaving when it was announced the Linode brand was being “retired”. This 1 month notice cash grab has made the decision much easier. I’ve been with Linode since 2012-ish. My $50 bucks a month won’t be missed but I’ll certainly miss Linode and getting emails about upgrades to my plan with no price increase. Moved my only “critical” server today and turned off my Linode instances. Giving a couple of weeks before cancelling my account officially. RIP Linode.
Long time Linode user myself maybe at least since 2012, very insulted. Can I ask where your going? I just saw this email and I’m numb, things with my life weren’t very stable and this doesn’t help now I have to add research to the mix.
I cannot believe how quickly Akamai has changed Linode. They have are changing everything from the top down. Then not communicating those changes to customers until the last second is unacceptable. Before the end of the year, the beloved customer/community first company we grew to know will be gone at this rate. We are all seeing increased rates of inflation and Akamai wants to take advantage by increasing prices 20% with 30 days advance notice is terrible communication and business.
Well since Akamai has taken over the London Data centre has gone down countless times over the past year, making your customers lose money, maybe you should be slashing our prices by 20% to cover those downtimes instead of raising the prices. We’ll probably be moving to one of your competitors!
I started just a few months ago to work with linode. I was happy with the service, BUT an increase of 20% with just a month of advice is inmoral even for a big and souless company like akamai…. I am not gonna lie, it can take at least two or three months to migrate but I have started to look for options to move on…
Linode, can you take care of student users’ student discounts or quotas like digitalocean?
wd780h: At this time, we do not offer a student discount or sponsorship program. We do have promotional codes available that will apply a $100 credit to an account if you’re a new user on our platform. With that said, I think having some type of student sponsorship program could be a cool idea. I’ve gone ahead and passed your feedback along to the team to see if this is something we could offer in the future.
Yeeeeeesssss please, this is what I’m talking about!
The reduction in egress overage pricing is HUGE and extremely welcome.
While compute price increases are a little sad, it’s completely understandable really.
It’s kind of funny to see people ranting about moving to competitors when they’ve been similarly raising prices, long before Linode. (We use DO and OVH at work; both saw cost increases a while back, the same goes for many other providers)
Extremely excited to be moving to Linode in the near future. Once serverless lands, that’ll sweeten the deal even more.
Well do you have what the new pricing structure will be? Instead of just telling us that you are raising rates – why not show us the new pricing structure. Thank you.
ServerMagic: You can find tables with the updated pricing in this Upcoming Pricing Changes Guide. We appreciate hearing feedback so I’ve gone ahead and shared yours regarding increasing storage across all plans with the team.
And while I am at it – with a price increase why not also give all server owners – whether it be Shared and Dedicated, an increase in their disk size or storage capacity.
You cannot keep taking if you are not willing to give.
I agree with the views expressed here, in that this could have been handled better. I’m going to be open to my options.
I think the traffic is still too expensive. Can it be cheaper? Everything else can be higher. I have a large traffic demand.
I have been a loyal customer of Linode for several years and have always appreciated the quality of their services. However, I was disappointed to learn about the recent 20% price increase. As a small business owner, every penny counts, and this increase has made it difficult for me to justify the cost of continuing to use their services.
While I understand that costs and inflation may be a factor in their decision to raise prices, I feel that this increase is excessive and unjustified. I have done some research and found that other hosting providers offer similar services at a more competitive price. As a result, I am considering moving my business elsewhere.
I hope that Linode will take their customers’ feedback into consideration and work to address their concerns. As a longtime customer, I would hate to have to leave, but the cost increase has made it difficult to continue using their services.
Overall, I have always appreciated the quality of Linode’s services, but the recent price increase has left me feeling undervalued and unappreciated.
good bye.
Till now linode was the best in terms of price to performance while digital ocean being the worst I think its time got find other options.
Que pena que suban el valor, acá en Ecuador por cada compra que se realice al exterior cobran el IVA, osea aumentará también el valor del IVA. Tendré que informar a mis 8 clientes que tienen el servidor con ustedes ya será decisión de ellos de seguir o no.
Gracias.
Been a customer since 2008. I guess it was a nice run.
Well a price increase of 20% with one month notice is not OK.
I’ve been a Linode customer for 11 years. Only had to contact support a couple times, and each time response was in an hour or so. Like having a trusted friend to help out.
Earlier this month, wanted to do a quick offsite backup, so tried to spin up a new 16GB linode with prior day Linode backup.
After an hour sitting at 0% done I sent in a ticket, got no response.
The point of Linode backups is to quickly spin up a backup & get things going again. If it takes multiple hours to restore the backup, what exactly have I been paying $20/month for all these years?
Well it took several hours till the backup came up. While waiting I realized that this was a great time to just leave Linode, so scp the entire image and done.
Had nodes in Fremont & Dallas. Just deleted the last one.
Bye, Linode.
Oh and Akamai? You are not a trusted friend.
Hey Robert – Thanks for sharing your feedback regarding the pricing change. We understand that it is hard for some folks but we felt a full billing cycle was a reasonable amount of time to make the announcement.
While I understand your frustration regarding the wait time for a backup to deploy, as we mention in the documentation, a large number of files will prolong the backup process and may cause failures. If you had a lot of files in your 320GB disk, this would have caused a delay in the Backup restore process.
We understand if making a change is the right call for you. Just know that we’ve appreciated having you as a loyal customer for the last 11 years and if you decide to come back, we’d welcome you with open arms!
Loved Linode, dont think Akamai will be able to create that bond.
It’s great to see that the nanode plan has been maintained, which is excellent.
All the comments are very valid, but, as usual, big guns dont care what the punters say, they will never respond…