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Hetzner Price Adjustment

docs.hetzner.com

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Re: Hetzner Price Adjustment

#101

Post by Capricorn2481 »

harrall wrote: post #70
Capricorn2481 wrote: post #50

Earlier quoted context omitted.

I don't think any VPS provider has come close to raising their prices this much. There's absolutely not enough people flocking to Hetzner to justify this.

But VPS providers share the same hardware and overprovision. They don’t need to add new hardware every time a new customer signs up. If you buy a dedicated server at Hetzner, you actually need immediate hardware. Many VPS providers also just resell Hetzner, OVH or other dedicated servers so they won’t increase the price until their own provider does.

That's all true, but this seems disproportionate even to the hardware market. They already raised their prices recently as hardware got more expensive, and now they are quadrupled. Maybe I am just misreading the hardware market right now.

Re: Hetzner Price Adjustment

#102

Post by alfanick »

ulfw wrote: post #81

Everything is getting stupider by the day. Tech is killing itself until this idiotic bubble bursts. Then we'll be in a decade of drought again like 2001

It's kinda awesome, the DDR prices will go extremely down (lower than before the bubble), and it will be spring time for self-hosted opensource models, cause people will be able to afford the hardware. We just need to wait for the peak.

Re: Hetzner Price Adjustment

#103

Post by MinimalAction »

I understand this is ultimately due to AI boom.

A couple of naive questions:

1. What's the bottleneck in ramping up RAM production? Is it the availability of silicon itself? Or the factories are at capacity?

2. Is this supposed to ease up despite the AI boom? Definitely would ease up if busted.

Re: Hetzner Price Adjustment

#104

Post by duttish »

WhereIsTheTruth wrote: post #98
drewg123 wrote: post #59

Earlier quoted context omitted.

The AI bubble has increased the prices of nand and ram by a factor of 4, so a 3x increase seems reasonable. Companies that are not big enough to have long term contracts with ram/nand vendors have been hit really, really hard by this.

There is no AI bubble There is an engineered scarcity, billion dollar companies can't ramp up production? Murica is stuck depending on the good will of Korea and China for thinking rocks? le fucking mao

As I understand it ramping up a new fab takes a couple of years and several billion dollars. The last time they ramped up production prices had crashed back down by the the time the new fab was fully up and running, so this time they're betting that the scarcity will resolve itself like it did last time.

Re: Hetzner Price Adjustment

#106

Post by 100ms »

tauntz wrote: post #77

"Fun" times for services selling micro-VMs running on top of Hetzner bare metal machines for a small margin. 3x increase in input pricing with essentially no notice (there was a 2 weeks notice of "we will change pricing" but no details. People assumed a max of 50% increase, I guess, not 3x)

You knew when they didn't include actual details at the time that something huge was coming

Re: Hetzner Price Adjustment

#107

Post by bigbuppo »

binarymax wrote: post #14

This is just the reality of hardware costs now. RAM and Disk are scarce, prices have skyrocketed. I wonder how much leverage the hyperscalers like AWS/GCP/Azure have on their own supply chain to keep costs level in their clouds.

What happens to these platforms when there's nothing left to access them? That's where we're headed.

Re: Hetzner Price Adjustment

#108

Post by zettabomb »

MinimalAction wrote: post #103

I understand this is ultimately due to AI boom. A couple of naive questions: 1. What's the bottleneck in ramping up RAM production? Is it the availability of silicon itself? Or the factories are at capacity? 2. Is this supposed to ease up despite the AI boom? Definitely would ease up if busted.

The entire capacity of RAM production is basically booked out, for at least the next year. All fabs have sold their allocations already, and it takes years to build a new one. As a result, no it will likely not ease up if demand continues like this, again for at least a year.

Re: Hetzner Price Adjustment

#109

Post by locknitpicker »

MinimalAction wrote: post #103

I understand this is ultimately due to AI boom. A couple of naive questions: 1. What's the bottleneck in ramping up RAM production? Is it the availability of silicon itself? Or the factories are at capacity? 2. Is this supposed to ease up despite the AI boom? Definitely would ease up if busted.

> 1. What's the bottleneck in ramping up RAM production? Is it the availability of silicon itself? Or the factories are at capacity?

For a RAM manufacturer, the incentive is to ramp up production AND prices. I doubt any of the names in the business is doing any work at all to lower their unit prices.

Re: Hetzner Price Adjustment

#110

Post by tengwar2 »

locknitpicker wrote: post #89
theturtletalks wrote: post #40

I was signing up for Hetzner years ago and it asked me to upload my passport to use their service. At that same time, I was reading about this story about WireCard. It was like Stripe for Europe and worth billions. Turns out it was run by a Russian spy network and was all a sham. That video alleged Germany’s bureaucracy is filled with Russian agents and this can be traced back to the East/West Berlin days. To save a…

> I was signing up for Hetzner years ago and it asked me to upload my passport to use their service. I don't really understand what bothers you so much about providing a photo of a "passport" (if you are an European citizen they require a ID card) but credit card info didn't registered as a concern worth noting. Can you explain what is the difference?

Credit card is a largely fixed risk of financial loss, with some legal safeguards for recovery, and the ability to get a replacement card with a different number. Passport carries an open long-term risk of impersonation and you can't just get a new passport because some company has a copy. Just the financial side of that risk can have much greater impact. Unless a company has a legal requirement to "know your customer", e.g. a financial institution, this is a red flag.
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