Are sales numbers that bad all over the world to drop VPS to 1 euro a month? Guess it is or just more marketing funded market grab. Better than free and get to name/address check the account holders for a 1 euro. That's what it is.
Question is what is month two and onward. If 1 euro also, that is just screwed.
The 1 euro plans are marketing loss leaders. Months two and onward are also 1 euro which is higher than the $0 annual loss leader teaser plans offered by Rackspace (
developer+, up to $50 of services free every month for an entire year, Xen) or
VC favorite Mirantis (4GB Ram, 4 CPU's, 2 IPs, 100 GB disk, KVM,
free for a year...company has raised over $100 million in VC funding so it can afford to give 4GB plans away)
The cloud customer acquisition / business strategy at many larger companies (Rackspace, Mirantis, OVH, Aruba, etc) looks something like this:
loss leader promos > low margin public cloud > high margin Private clouds = #winning