It’s all very well to say that we currently have a number of cheap web hosting and cheap vps providers gracing all corners of the Internet – but doesn’t this beg the question – “why is web hosting so cheap”?

After all, storing data and providing 24/7 access to it through the Internet is no easy feat, and indeed in the past has required a lot of time, resources, and ultimately – money. So why has the price come down so dramatically in recent time? How has the industry developed to offer us rates below $10, for which we would once have paid $100 or so to use?

It’s all to do with the costs of technology, and the ever increasing demand for cheap web hosting. Remember those economics lessons you got in school? Well, it’s a simple matter of supply and demand.

As more and more people demand cheap web hosting, more and more suppliers come in to the market. This effectively pushes the prices for all web hosting services downwards – which brings us to the situation today where we have hugely discounted web hosting, in comparison to a few years back.