Layered Technologies: dedicated hosting provider to avoid

Layered Technologies, Inc. has decided to raise their prices again. The other day I woke up to an e-mail with the subject "Layered Technologies Pricing Update – Effective July 1, 2008", stating that they would be increasing the price of each of my works' servers by $28 dollars a month, this works out to a 21% price increase per server; This brings my works' AMD Athlon 64 3200+'s to an outrageous $160/Mo.

At Layered Technologies we are proud of the pioneering role we've played in the unmanaged server hosting market, as well as the trust we've developed within our community of thousands of clients and partners. We know that this trust is dependent on a number of factors including our ability to provide excellent customer service, market leading products, and highly available facilities and infrastructure. We also know it is imperative that we put in place the tools that allow us to provide more value and higher levels of service to those who depend on us and, like most other businesses, our underlying costs for providing these services have increased dramatically in the past year. As a result it has become necessary to adjust our pricing effective July 1, 2008.

I have never, in all my years of working in the IT industry heard of a data centre raising the prices of their dedicated hosting clients to such a great degree. This is not the first price increase that Layered Technologies has forced on their clients, if my memory serves correct this is the second price increase in less than a year. While Layered Technologies has stated in their email that they have a “technology refresh” available, I received the following e-mail when enquiring about having my server hardware upgraded:

Hello,

Unfortunately we are not offering free hardware upgrades. Please see our specials page here:

http://www.layeredtech.com/dedicated-servers/specials.php

Thanks,
Hallie

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Hallie Weaver
Sales – Account Manager
1-866-584-6784 x 7038 > Toll Free
972-398-7083 > Direct
972-398-7055 > Fax
hallie.weaver@layeredtechnologies.com
Layered Technologies, Inc.

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They are telling me that it's cheaper to replace my server, and go through the effort of transitioning over all my software than to simply upgrade my hardware? This is a provider to avoid using if you do not want to deal with unexpected price increases and shoddy support. There is a large thread on Web Hosting Talk regarding the price increases. I suggest if you are looking for hosting I suggest you take your business elsewhere. Layered Technologies does not warrant the premium that they are charging for their services.