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Hetzner Price Adjustment

docs.hetzner.com

221–230 of 794 posts

Re: Hetzner Price Adjustment

#221
post #216

As a long term metal customer, I understood the need to raise prices for energy usage.... but for disk/ram I'm struggling to be sympathetic. The hardware I am using is already procured by them, and until such time there is a hardware failure I cannot support a price rise, because were is their justification for existing hardware?

They will need to buy new hardware too I guess…

Re: Hetzner Price Adjustment

#222

Earlier quoted context omitted.

This is the real risk after the slow death of personal computing. Even internet resources like servers will be hoarded by the hyperscalers that are the only ones who can afford to order years of compute hardware in advance. I’ve already started buying cheap old business PCs just in case I’ll ever need to have simple barebones machines to run things on.

And I was told my whole life that capitalism solved everything through supply and demand magic. I wish I could say I am disappointed.

[flagged]

Re: Hetzner Price Adjustment

#223
post #216

As a long term metal customer, I understood the need to raise prices for energy usage.... but for disk/ram I'm struggling to be sympathetic. The hardware I am using is already procured by them, and until such time there is a hardware failure I cannot support a price rise, because were is their justification for existing hardware?

An ongoing business that intends to remain ongoing has to charge current customers based on the replacement cost of consumable items used to service those customers.

That's why for example gasoline prices react almost immediately after something affects (or even threatens to affect) the price of crude oil, even at gas stations that have just filled their storage tanks and will be selling that already purchases gas for quite a while.

Most of us don't usually thing of computer hardware as a consumable but to a hosting business it effectively is.

Re: Hetzner Price Adjustment

#225
post #11

They are also becoming greedy. I rent their 20GB VRAM instance GEX44, for which they now ask a 500 euro one-time setup fee. Whereas it was something like 60 euros a year ago.

We (company) do the same. Though in our case the setup cost was 80 Euros (I think), less than a year ago. As the GPU proved not really suitable for any serious server workloads (it's a workstation class card), we'll soon be ditching that machine anyways (now for sure). Maybe our other inventory at Hetzner too. Not even because of the price increases themselves, but rather because the way in which they've communicated those. Personally, I've been a loyal customer and avid advocate for Hetzner, for well over a decade. They sure knew how to nuke that in record time. They can spin their story any way they like, but I'd say their board better consider sending most of their management packing, without bonuses or severance pay.

Re: Hetzner Price Adjustment

#226

Earlier quoted context omitted.

This is the real risk after the slow death of personal computing. Even internet resources like servers will be hoarded by the hyperscalers that are the only ones who can afford to order years of compute hardware in advance. I’ve already started buying cheap old business PCs just in case I’ll ever need to have simple barebones machines to run things on.

And I was told my whole life that capitalism solved everything through supply and demand magic. I wish I could say I am disappointed.

I was also told this. Why isn't it happening? Can some capitalists explain why capitalism isn't happening the way it's supposed to? Is it because of government regulations, do we need to deregulate?

Re: Hetzner Price Adjustment

#227

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.

Egress pricing? That's one of their highest margin products! Compute is the one that's being squeezed!

Re: Hetzner Price Adjustment

#228

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.

These prices have absolute nothing to do anymore with memory prices. Do not forget that Hetzner already increased the setup fees by a factor of 4x before to compensate for the price. And also servers getting price increases. It seems they have shifted by reducing the setup fees, and increasing the monthly costs. As this generates more revenue. And its easy to prove this... AX42 ... Its 8700GE that has gone from 65 Eu…

The big increases here are for their cloud product, which is hourly billing with no setup. In that context it seems more reasonable. I guess we need to remember that hourly billing and flexible prices cut both ways, eh?

Re: Hetzner Price Adjustment

#229
post #216

As a long term metal customer, I understood the need to raise prices for energy usage.... but for disk/ram I'm struggling to be sympathetic. The hardware I am using is already procured by them, and until such time there is a hardware failure I cannot support a price rise, because were is their justification for existing hardware?

They are not raising prices for existing contracts, only new ones.

Re: Hetzner Price Adjustment

#230

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.

This is the real risk after the slow death of personal computing. Even internet resources like servers will be hoarded by the hyperscalers that are the only ones who can afford to order years of compute hardware in advance. I’ve already started buying cheap old business PCs just in case I’ll ever need to have simple barebones machines to run things on.

Sadly this is not a joke nor some doomsday thinking. Google recently repurposed thousands of phones for server needs. Why? Well guess why… to teach everyone tis coming.
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