cPanel Pricing Increase – What to Expect?

cPanel Pricing Increase – What to Expect?

cPanel is the most popular web hosting platform that has more than 70 million domains hosted on servers running cPanel/WHM. The vast majority of web hosting giants use this platform on their servers.

The reasons for such popularity are:

  • cPanel is very functional (though some less tech-savvy customers may be overwhelmed by the variety of tools in it) 
  • It works well with the most popular technology stacks in the web hosting industry (e.g. CloudLinux – Apache – MySQL – PHP)
  • It’s easy to migrate cPanel accounts from other providers or between servers and hosting plans of the same provider
  • Thanks to its long history and development efforts it’s pretty secure
  • There are a lot of sysadmins who are familiar with it so it’s easier to find employees who will support it

So the modern hosting industry is based on defined patterns and cPanel is one of the key elements for the vast majority of hosting businesses.

cPanel Pricing News

In June 2019 they dropped a bomb on the entire web hosting market by publishing their new cPanel pricing announcement. It was not just a price increase but also some significant changes to the model of pricing.

cPanel Pricing Change

Below you can find the comparison of the old rates vs new cPanel pricing

Old cPanel plansOld cPanel licence priceNew cPanel plansNew cPanel licence price
Solo$15/monthAdmin (1 account)$20/month
cPanel and WHM VPS$20/month (or $200/year)Pro (up to 5 accounts)$30/month
Dedicated$45/month or $425/yearPremier$45/month ($32/month for partners)limited to 100 accounts. Additional accounts will require an extra $0.20/month each

However, hosting providers took advantage of partnership pricing and used licenses for $11/mo per server. As you can see, it’s not only cPanel cost per month increase but some additional rules which are unpleasant for providers and end-users.

How cPanel Pricing Hike Affects Providers

  1. The most shocking change is the implementation of per account pricing after 100 accounts. The truth is the average shared hosting server can host 2-3k of cPanel accounts and this means significant cpanel licence cost increase for hosting providers. So far there weren’t significant web hosting prices increase across the industry but eventually, providers will have to do something with that
  2. Reseller hosting is affected as well for companies that offer an unlimited number of resold accounts. Siteground has already stopped selling this kind of hosting
  3. It is not yet clear how to implement this kind of pricing for cPanel license for VPS and dedicated servers who have over 100 of cPanel accounts hosted

How Providers Handle the cPanel Pricing Update

  1. The obvious way is to increase pricing. This is a very unpopular solution especially for providers that used to provide cheaper hosting. However, those who have higher prices most likely will avoid doing this. Anyway, with the lowering margin, they probably will be forced to look for cash flow sources elsewhere among their products.
  2. Another complicated way is to switch to some other control panel such as Directadmin or Plesk. This solution is followed by a lot of logistical headaches such as what to do with the existing customers and staff retraining. And who knows when those providers will decide to increase prices?
  3. Go for development of own control panel. That’s the way of SiteGround. They already announced the switch to a self-made control panel. While this allows them to have a flexible solution without any need to pay to some other vendor, you should realize that cPanel is being developed for years and years. This means they have huge experience and security practices which are hardly the case with a brand new product of this kind.

    Another example is Liquid Web. They own an alternative control panel called Interworx and they guarantee price lock for it for 3 years.

What Will Happen to the Entire Hosting Industry

Changes are often stressful. However, every crisis brings not only challenges but also opportunities.

Sure the cPanel price increase affected the trust of providers. Eventually, this may affect the end-user who will have to pay more but at the same time, this means that providers have to adapt and improve. 

Also, some interesting options may appear on the market which is actually good for all of the parties.

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