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Hetzner Price Adjustment

docs.hetzner.com

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Re: Hetzner Price Adjustment

#121

Post by Hamuko »

locknitpicker wrote: post #109
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.

The current pricing isn't sustainable, and if you try to wring out the maximum amount of profit, you're gonna have competition spring up. The Chinese are probably salivating at this opportunity. Previously they would've had to sell memory at discount rates to get anyone to switch over to them, but now they'd have customers lined up for years if they were selling at the prices Samsung/Micron/SK Hynix were selling a year ago.

Re: Hetzner Price Adjustment

#122

Post by jpalomaki »

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?

When many sites are collecting these photos, it increases possibility of them leaking. Since these are also used for KYC process in crypto sites etc, this in turn increases risk of identity theft.

Re: Hetzner Price Adjustment

#123

Post by andix »

eugenekolo wrote: post #42

It really is an absolute massive jump. Have no clue what's going on in the back to warrant a 3x increase... 25-50%, sure.. but 3x is wild.

They might have had delivery contracts from before the prices increased, so they didn't have to pass them to customers. Maybe the last servers from those contracts got delivered already and any new orders need to be bought at much higher prices.

Another possibility: They were growing too fast and need to slow down. At some point additional growth might become too risky, or even exponentially more expensive. It might require fundamental organizational changes.

Re: Hetzner Price Adjustment

#125

Post by dindunuf »

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

>billion dollar companies can't ramp up production?

you're a semiconductor manufacturer who wants to take advantage of the current boom. your options are:

A) invest a hundred cubic meters of money into doubling your manufacturing capacity

B) raise prices by 100%

I can't really blame them for going with B. the blame lies entirely with America's ability to invest billions of its infinite money into companies that make no profit now and have no plausible path to profitability in the future.

Re: Hetzner Price Adjustment

#128

Post by transmit101 »

pelagicAustral wrote: post #47

For EU-based ops I moved to UpCloud, they have top customer service and their offerings are far more complete than Hetzner... Plus, they have more zones.

Is there anything to suggest these increases are not reflecting the increased baseline price of RAM, GPUs, etc?

If not then it is only a matter of time before other providers are forced into similar price hikes.

Re: Hetzner Price Adjustment

#129

Post by FpUser »

The solution I think is to tell all of them starting with clouds to go fuck themselves (where possible of course) and start self hosting. I do this for years and am totally happy. I was also hosting on Hetzner and was thinking to do it again for some (not all) services but not with this new wonderful deal.

Re: Hetzner Price Adjustment

#130

Post by tjwebbnorfolk »

oasisbob wrote: post #71
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.

Been wondering the same. GCP recently increased their egress pricing, and was expecting AWS to follow. So far, haven't seen any other notable cloud price increases. Thought for sure they'd be reevaluating by now, I'm surprised to see the stability.

A ton of cloud workloads are still running on old Haswell-era CPUs with RAM that was bought a decade+ ago. Probably the costs will be made up with new VM shapes.
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