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Hetzner cuts traffic on US VPSs, raises prices

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Re: Hetzner cuts traffic on US VPSs, raises prices

#93
> Until this change, customers who have used fewer resources have covered the costs, in a way, for other customers who have used much more resources. We want to make things more balanced.

I may know one of the culprits -- whom I will leave unnamed here. But the company, who is fairly popular, built out their own CDN via putting a bunch of nginx caching proxies on various Hetzner servers around the world. It apparently was really cheap and very effective. Given that they were bootstrapped and this was prior to Cloudflare really being that popular, it was a great strategy. This was true like 8 years ago, so maybe it has changed in the meantime.

Re: Hetzner cuts traffic on US VPSs, raises prices

#94
post #49
post #33

Earlier quoted context omitted.

No, they realized that nobody switches away from AWS because of their expensive bandwidth.

Bingo, lots of people are loud about this online and many influencers screaming about this on Twitter, so it’s easy to conflate that as a pressing issue. Ultimately a thousand indie devs mad about bandwidth extortion are still making up less than 1% of a serious company’s revenue for AWS. I’ve liked using Hetzner before and I’m curious how they’ll go after the market now. This is probably the wrong move though; Cloud…

> lots of people are loud about this online and many influencers screaming about this on Twitter, so it’s easy to conflate that as a pressing issue. Ultimately a thousand indie devs mad about bandwidth extortion are still making up less than 1% of a serious company’s revenue for AWS.

So basically, by getting worked up publicly about this, those people provide free marketing for Hetzner?

Re: Hetzner cuts traffic on US VPSs, raises prices

#96

Weird, one would expect that in anything related to technology either prices go down, or performance goes up over time.

Not when there is a duopoly on one market (US) and hundreds of companies on other (EU).

How is there a duopoly in the cloud market in the US?

Re: Hetzner cuts traffic on US VPSs, raises prices

#97
post #57

It sounds like I can just move my bandwidth hungry servers to europe and eat the latency penalty- is that a correct read?

That's correct but assuming you want > 300 MB/s from EU to NA that will be a struggle. If you don't care about high upload/download speed from/to NA EU then yes, that's a good move. Otherwise closeness in geo is still king.

As long as the link doesn't drop or reorder packets too badly a >300MB/s (or probably given we're talking about small virtual machines 300Mb/s) flow doesn't require much tuning. For a single long lived TCP connection allowing the window size to scale to ~2x the expected bandwidth delay product should be enough. So a simple things like large HTTP uploads or downloads will work fine once the congestion window has grown.

The real problem is going to be anything more complex than that. Most request-response protocols too chatty and won't send enough independent outstanding requests to fill up the bandwidth delay product of an intercontinental link which will kill the throughput. Also users don't like to wait for slow responses no matter what throughput you can sustain for large transfers.

Re: Hetzner cuts traffic on US VPSs, raises prices

#99

Earlier quoted context omitted.

True, so what gives? Just them wanting more money now that they got enough customers? They probably did some calculations and realized that damn, they could pocket more money so might as well try their luck. Like yeah, let us assume they have 10k customers: 7.05 * 10000 is 70500, 8.99 * 10000 is 89900, that is 19400 USD more for them, and that is just for one!

Or the cause is one step removed, for example the handful of giant companies that control all US internet infrastructure, versus the hundreds all over Europe.

Yeah, so that probably means the count of users is higher than the previously assumed 10k. They can do it, so they will do it.
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