Exceptional situation, exceptional measures: Aqua Ray rate changes

For the past 18 months, we have been experiencing a crisis in the electric power market. Unfortunately, the problem continues to grow.
In order to maintain our business, we must revise our overall prices by 10% in 2023.
The purpose of this article is to present the context and details related to the application of this tariff revision which will affect all our customers.

For the past 18 months, we have been experiencing a crisis in the electric power market. Unfortunately, the problem continues to grow.
In order to maintain our business, we must revise our overall prices by 10% in 2023.
The purpose of this article is to present the context and details related to the application of this tariff revision which will affect all our customers.

As the year draws to a close, the pressure of the electric power crisis on our production costs is increasing. This is largely due to the end of the exceptional support provided by the State in 2022. Indeed, the volume of nuclear electricity granted by EDF to distributors under the ARENH, is reduced from 120 TWh to 100 TWh. Aqua Ray will therefore have to pay on average twice as much for its electricity from January 1st 2023.

As the year draws to a close, the pressure of the electric power crisis on our production costs is increasing. This is largely due to the end of the exceptional support provided by the State in 2022. Indeed, the volume of nuclear electricity granted by EDF to distributors under the ARENH, is reduced from 120 TWh to 100 TWh. Aqua Ray will therefore have to pay on average twice as much for its electricity from January 1st 2023.

In addition to this already difficult situation, we are experiencing significant pressure on server and network hardware supply chains. The decline in production rates in the face of growing demand, as well as the lack of raw materials at global level, are sharply increasing delivery times and prices, including in the secondary market. This situation is further exacerbated by the fact that purchase prices are often negotiated in dollars and have therefore increased considerably in conjunction with the collapse of the Euro/Dollar exchange rate in 2022 (by almost 20%).

In addition to this already difficult situation, we are experiencing significant pressure on server and network hardware supply chains. The decline in production rates in the face of growing demand, as well as the lack of raw materials at global level, are sharply increasing delivery times and prices, including in the secondary market. This situation is further exacerbated by the fact that purchase prices are often negotiated in dollars and have therefore increased considerably in conjunction with the collapse of the Euro/Dollar exchange rate in 2022 (by almost 20%).

The pressure is on at all levels. Aqua Ray's employees also expect the company to support them in a context of hyperinflation, where their purchasing power is under pressure. Naturally, everyone is affected by the same problem. Prices are rising, threatening our growth, our business and the business models of our cloud infrastructure offerings.

The pressure is on at all levels. Aqua Ray's employees also expect the company to support them in a context of hyperinflation, where their purchasing power is under pressure. Naturally, everyone is affected by the same problem. Prices are rising, threatening our growth, our business and the business models of our cloud infrastructure offerings.

Everything leads us to believe that this difficult situation is not as temporary as we could have hoped a year ago.

Everything leads us to believe that this difficult situation is not as temporary as we could have hoped a year ago.

Aqua Ray has all the cards in hand to deal with this situation:

Aqua Ray has all the cards in hand to deal with this situation:

However, we are faced with only two options for dealing with this crisis in the short term: to take on debt or to activate the lever of price increases. Our main challenge is to limit any price increase to an acceptable level so as not to jeopardize our customers and their business models. We have therefore observed the reactions of the market as well as those of our colleagues and we have decided to raise prices as little as possible based on what we have seen elsewhere [1] [2] [3]. The prices of most of our services will therefore be revised by 10% in 2023.

However, we are faced with only two options for dealing with this crisis in the short term: to take on debt or to activate the lever of price increases. Our main challenge is to limit any price increase to an acceptable level so as not to jeopardize our customers and their business models. We have therefore observed the reactions of the market as well as those of our colleagues and we have decided to raise prices as little as possible based on what we have seen elsewhere [1] [2] [3]. The prices of most of our services will therefore be revised by 10% in 2023.

The difference with what would have been necessary to balance our budget in 2023 will be assumed by the company and therefore carried by debt to try to preserve the activities of our customers. This debt will be raised from our partner banks and from our shareholders, i.e. Aqua Ray's operational managers, since we are an independent company with no investor in its capital. We are counting on the opportunity of a return to a certain normality in the electric energy market within the next few years.

The difference with what would have been necessary to balance our budget in 2023 will be assumed by the company and therefore carried by debt to try to preserve the activities of our customers. This debt will be raised from our partner banks and from our shareholders, i.e. Aqua Ray's operational managers, since we are an independent company with no investor in its capital. We are counting on the opportunity of a return to a certain normality in the electric energy market within the next few years.

We hope that our customers will understand this exceptional situation which requires us to revise not only our catalog prices, but also our current contracts. Almost all our customers will be affected by this price increase. Here are the details of the revisions that will be applied:

We hope that our customers will understand this exceptional situation which requires us to revise not only our catalog prices, but also our current contracts. Almost all our customers will be affected by this price increase. Here are the details of the revisions that will be applied:

As an exception, customers who have already had a rate increase in 2022 will not have the new increase applied until 12 months after the previous increase. For example, if your contract has already been revised upwards on April 1, 2022, the new 10% increase will apply on April 1, 2023.
For all new contracts entered into in 2022, the rate increase will apply at the earliest 12 months after the activation.

As an exception, customers who have already had a rate increase in 2022 will not have the new increase applied until 12 months after the previous increase. For example, if your contract has already been revised upwards on April 1, 2022, the new 10% increase will apply on April 1, 2023.
For all new contracts entered into in 2022, the rate increase will apply at the earliest 12 months after the activation.

This concerns all products of this family, as well as domain names alone. These rates had not been revised for more than 10 years, and we have no choice but to make such a catch up. In practice, our best-selling product: Aqua One, a web hosting package associated with a .fr domain name, will be increased from 2 euros per month to 3 euros per month starting in 2023.
The list of all shared hosting products and the new prices are available here

This concerns all products of this family, as well as domain names alone. These rates had not been revised for more than 10 years, and we have no choice but to make such a catch up. In practice, our best-selling product: Aqua One, a web hosting package associated with a .fr domain name, will be increased from 2 euros per month to 3 euros per month starting in 2023.
The list of all shared hosting products and the new prices are available here

The price of our collaborative cloud suite remains unchanged at 5 euros/user/month.

The price of our collaborative cloud suite remains unchanged at 5 euros/user/month.

This difficult period reinforces our convictions. We must continue to build a value chain based on suppliers from the European Union, use and contribute as much as possible to open source software and thus build a true Sovereign Cloud service. We must also redouble our efforts to reduce the environmental impact of our infrastructure and data centers, in particular by reducing our electricity consumption. This is our roadmap.

This difficult period reinforces our convictions. We must continue to build a value chain based on suppliers from the European Union, use and contribute as much as possible to open source software and thus build a true Sovereign Cloud service. We must also redouble our efforts to reduce the environmental impact of our infrastructure and data centers, in particular by reducing our electricity consumption. This is our roadmap.

We would like to thank our customers and partners who will be able to continue to work with us under these conditions and with this common goal.

We would like to thank our customers and partners who will be able to continue to work with us under these conditions and with this common goal.

Any question ? A doubt ? A particular request ? Do not hesitate to contact us by clicking on this button below, we will answer you as quickly as possible.

Any question ? A doubt ? A particular request ? Do not hesitate to contact us by clicking on this button below, we will answer you as quickly as possible.