Akamai has announced that it is increasing the prices of some of its Linode cloud computing plans and products by 20% and it is not going well with customers.
Akamai Linode price increase
In a statement released by Akamai on March 1, 2023, about a year after acquiring Linode, prices for various Linode products will be increased by a significant percentage. Akamai says it is increasing the prices due to the tough financial climate, growing costs of data center space, and rising energy costs. The pricing changes will take effect on April 1, 2023.
Below are the pricing changes;
- Shared and dedicated CPU: to increase by 20%
- More than one IPv4 address: To increase by $1 each
Prices that will not be increased include for;
- Block Storage
- GPU plans
- High Memory plans
- Linode Images
- Managed Databases
- Object Storage
- Prices of Nanodes (1GB Shared CPU plans)
One of Linode’s strengths was that it was significantly priced lower compared to its competitors like AWS. With the rise in prices, it is likely to lose customers to competitors. However, Akamai is betting on the argument that the increase in price is going to add more value to customers due to the acquisition of costly new hardware.