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Hetzner Prices increase 30-40%

docs.hetzner.com

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Re: Hetzner Prices increase 30-40%

#441
post #264

Earlier quoted context omitted.

But aren't those the same startups that think they need to run on AWS EKS instead of using a single cheap server? The cheapest used Hetzner server currently is €39.24 / month: - Intel Core i7-6700 - 32 GB - 2 x 480 GB Datacenter SSD - 1 GB/s - 20 TB traffic Their VPS are even cheaper. And you can run a lot on this.

Except 40€ a month is extremely poor value for this CPU that's more than a decade old.

Is it? It's 10x the price on GCP:

https://cloud.google.com/products/calculator?dl=CjhDaVEyWWpJ...

The CPU is the same generation; https://docs.cloud.google.com/compute/docs/general-purpose-m...

Re: Hetzner Prices increase 30-40%

#442

Earlier quoted context omitted.

Adam Smith had already clarified free market refers to a market free from all forms of economic privilege, monopolies and artificial scarcities. You are confusing market outcome with market structure.

But where is the monopoly here? Nobody has a monopoly on housing supply or DRAM production. Nobody is making an artificial scarcity. They’re producing as much as they can. You can buy the exact same DRAM that the data centers are bidding on.

There is absolutely artificial scarcity in the housing market, it is one of the biggest problems we face as a country

Re: Hetzner Prices increase 30-40%

#443

Earlier quoted context omitted.

Prices are decided at the margins. Having PE and REITs at every single table, even if their actual ownership is small as a %, makes huge differences.

You’re still missing the key point: Hedge funds and REITs aren’t arbitrarily buying housing at any cost. They are responding to the market. If they overbuy then they will lose money and have to sell at a loss, at which point you could snap up some good deals.

This is ridiculously oversimplified, because there is no real market in housing. It is illegal to build in all of the places people want to buy. The purchase of housing by hedge funds isn't a problem on its own, it's simply a symptom of the bigger problem of supply restrictions.

The funds themselves say in their financials that they view housing as profitable because of the various restrictions on supply in every desirable city. They explicitly say that if those restrictions were lifted they would not be able to make money in that business and they would exit.

Re: Hetzner Prices increase 30-40%

#444

Earlier quoted context omitted.

> It's that AI companies are vacuuming up every DRAM chip on the planet and the rest of us get to pay the tax. DRAM is priced based on supply and demand, like every other market. When demand goes up, the price goes up for everyone. It’s not a “tax” on the rest of us in any sense. There’s just a lot of demand everywhere. > That's not normal market dynamics. This is actually a textbook example of markets functioning in…

Saying this is just the market...is like saying housing is a free market after hedge funds buy your entire neighborhood...

Are there regulatory barriers to entering the DRAM market like there are in housing?

Re: Hetzner Prices increase 30-40%

#446

If you just want an app server pick up an hp elitedesk off ebay and a ups and run it on your home inet connection.

Note: your ISP might cut your account, and this might violate your home insurance contract — depending on jurisdiction. At least where I live there’s a stupid amount of red tape for these things.

Your ISP will cut your account when you saturate the upstream pipe 24/7 for weeks on end... which will only happen if you host video.

And your home insurance will not know/care if you're operating a desktop-sized computer or even a single server (it is perfectly fine and expected a developer might bring an actual server home for troubleshooting). Home insurance only cares if you're running dozens of them.

Re: Hetzner Prices increase 30-40%

#447
post #409

Earlier quoted context omitted.

Infineon is _opening_ its fab plant in Dresden this year which was supported by around 1bn euros from the EU equivalent of the CHIPS Act. They started building this fab in 2023, while TSMC, who started building its fab in the US right after covid just delayed the opening to 2027

The fab that Infineon is building is vastly smaller in scale, and their tech isn't really relevant to this discussion. For instance, it doesn't produce CPU/GPU microchips or DRAM. Also only 300mm wafer technology, which isn't competitive for anything except for some narrow industrial use-cases. Glad to see the EU is doing it, but it's a completely different thing.

Pretty much everyone is on 300 mm wafers for everything now, and has been for a while. Are you perhaps reading this as 300 nm process (which would usually be called 0.3 micron)?

Re: Hetzner Prices increase 30-40%

#448

I recommend Netcup as a solid EU budget alternative to Hetzner, zero complaints from me.

This is probably the best alternative provider for individuals that I could find, unless you're orchestrating a fleet of servers or something. Personally I'll wait out my next billing cycle with hetzner, as I expect other hosts to follow shortly.

Re: Hetzner Prices increase 30-40%

#449

Earlier quoted context omitted.

Where are these unregulated markets? Are you trading with your neighbor? If so, good, the more of that the better.

An example of unregulated market is where I come to your house and put a gun to your head and in exchange for not pulling the trigger you give me your various items of value. That's one form of trading with your neighbor.

While you are technically correct, you are neglecting that it would a be a bad idea, because in such a market I would likely answer the door with a shotgun or I would have an agreement with my other neighbor to shoot you if you come to my door brandishing.

This is actually also how global diplomacy works. Either have big guns or big friends.

Re: Hetzner Prices increase 30-40%

#450

Earlier quoted context omitted.

>That CPU is ancient, though. Over a decade old. Coincidentally so are the t3 / t3a instances on AWS that everyone loves to use especially for dev/staging environments

10 years is where hardware failure rates start ramping quickly, in my experience. Not necessarily obvious failures, but subtle errors, memory problems (like this case without an ECC capable CPU) and little instabilities. With cloud instances I can migrate to a new instance with a couple clicks if I want. Trying to save a couple hundred euros per month on hosting costs needs to be balanced against the risks and extra…

Right, for exactly that reason Hetzner offers brand new AX42 / EX63 servers with ECC memory and modern (Zen 4 / Arrow Lake) CPUs for just a little bit more.
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