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Hetzner Price Adjustment

docs.hetzner.com

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Re: Hetzner Price Adjustment

#21

Post by eternalban »

lukeqsee wrote: post #4

While the pricing is interesting, I think the fact it is driven by the input costs of electricity is even more telling. The fact that electricity costs is the dominating (edit, correction: marginal ) cost of cloud computing basically means that: 1) We're up against physical barriers to lowering the cost (and ecological impact) of our clouds. 2) Optimizing for less compute will pay multi-fold dividends over the next f…

> Optimizing for less compute will pay multi-fold dividends over the next few years where we can expect energy prices to continue rising.

I suspect this is already happening in places like Google and paying significant dividends given the scale of code replication.

Re: Hetzner Price Adjustment

#22

Post by kilroy123 »

ninjin wrote: post #8
lukeqsee wrote: post #4

While the pricing is interesting, I think the fact it is driven by the input costs of electricity is even more telling. The fact that electricity costs is the dominating (edit, correction: marginal ) cost of cloud computing basically means that: 1) We're up against physical barriers to lowering the cost (and ecological impact) of our clouds. 2) Optimizing for less compute will pay multi-fold dividends over the next f…

To be fair, Hetzner is notorious for pushing down prices for everything as far down as they can by any means necessary. So this most likely makes their price point more sensitive than many other providers to any cost increase. Here is a great walk-through of one of their data centres [1] and you will see how streamlined everything is down to the hardware components. Nearly nothing goes to waste. [1]: https://yewtu.be…

I mean if your competition is Amazon I image you'd have to be like that.

Re: Hetzner Price Adjustment

#23

Post by doikor »

ChuckNorris89 wrote: post #9

Germany € 0.29/kWh € 0.45/kWh Finland € 0.12/kWh € 0.22/kWh Damn, why is electricity in Germany over twice as expensive as in Finland? I doubt Germans have twice the purchasing power as Finns.

Gas and oil use for electricity is very low. Electricity is over 85% renewable and nuclear with most of the rest coming as industrial or district heating by products

District heating is quite often coal or oil for now but quickly changing to non carbon forms.

Here is a real time view of the electricity market in Finland https://www.fingrid.fi/en/electricity-market/power-system/

Germany on the other hand bet heavily into gas (and mostly as pipelines to Russia without building any LNG terminals of their own for redundancy) while trying to change over to renewables. Now gas is very expensive and the change over is not finished yet so they have to burn expensive gas and keep their old coal plants running (very expensive in terms of co2 credits)

edit: Electricity is really expensive now in Europe in general due to sanctions on Russia (and their retaliation cuts). Hopefully the new Olkiluoto 3 reactor goes into full production mode before winter to help a bit (it is running at partial power during testing at the moment)

Re: Hetzner Price Adjustment

#24

Post by throwaway0x7E6 »

onphonenow wrote: post #11
dangerface wrote: post #6

Love Hetzner great to see a hosting company thats being upfront and transparent about its prices. So tired of hosting companies doing dodgy stuff with their pricing like giving you the first month 99% off but wording it like you will pay that month to month.

AWS has never raised prices on me.

because everything except the loss leader (EC2) has triple+ digit markup

Re: Hetzner Price Adjustment

#25

Post by tecleandor »

schroeding wrote: post #18
tecleandor wrote: post #15

Earlier quoted context omitted.

They are publishing the prices now, just not in the main pricing page until the prices are current: The new prices for the colocation electricity/air conditioning rates are: electricity/air conditioning rate old price\* new price\* Germany € 0.29/kWh € 0.45/kWh Finland € 0.12/kWh € 0.22/kWh \*These prices do not include VAT.

But those are only the rates for collocation. The other server products (rented dedicated servers, VPS, etc) will become more expensive, too. Those prices are not yet announced, are they? (except the rough estimate of 10%)

Ah, it's true it isn't super clear... So "around 10%" and:

  The products that do not directly use electricity are not affected: IPs, domains, SSL certificates, racks, setup fees, and a few other examples.

Re: Hetzner Price Adjustment

#26

Post by Dunedan »

nik736 wrote: post #16
onphonenow wrote: post #11

Earlier quoted context omitted.

AWS has never raised prices on me.

Don't worry they will. At least in Germany :-) Electricity pricing is insane and will only get worse. I doubt AWS will operate a whole region at a loss.

Amazon invests a lot in its own wind and solar parks. Because of that, energy prices on the open market shouldn't affect them too much.

Read more about that at https://sustainability.aboutamazon.com/environment/renewable...

Re: Hetzner Price Adjustment

#27

Post by mytailorisrich »

ChuckNorris89 wrote: post #9

Germany € 0.29/kWh € 0.45/kWh Finland € 0.12/kWh € 0.22/kWh Damn, why is electricity in Germany over twice as expensive as in Finland? I doubt Germans have twice the purchasing power as Finns.

Finland has a lot of nuclear and hydro, which are stable sources. Hydro can get dirt cheap since production is basically constant even if demand is low.

Re: Hetzner Price Adjustment

#29

Post by weberer »

ChuckNorris89 wrote: post #9

Germany € 0.29/kWh € 0.45/kWh Finland € 0.12/kWh € 0.22/kWh Damn, why is electricity in Germany over twice as expensive as in Finland? I doubt Germans have twice the purchasing power as Finns.

Germany shut down all their nuclear plants about 10 years ago, opting to rely on natural gas from Russia.

Finland invested in nuclear and is bringing their latest plant online this fall.

It doesn't take a genius to see which one would be hit harder by sanctions on Russian gas.

Re: Hetzner Price Adjustment

#30

Post by dannyw »

kilroy123 wrote: post #22
ninjin wrote: post #8

Earlier quoted context omitted.

To be fair, Hetzner is notorious for pushing down prices for everything as far down as they can by any means necessary. So this most likely makes their price point more sensitive than many other providers to any cost increase. Here is a great walk-through of one of their data centres [1] and you will see how streamlined everything is down to the hardware components. Nearly nothing goes to waste. [1]: https://yewtu.be…

I mean if your competition is Amazon I image you'd have to be like that.

Their competition charges XXX% markups on everything but EC2...
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