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Hetzner Price Adjustment

docs.hetzner.com

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Re: Hetzner Price Adjustment

#261

Post by Dylan16807 »

Gasp0de wrote: post #255
Dylan16807 wrote: post #252

Earlier quoted context omitted.

> This is the real risk after the slow death of personal computing. By the time you can have a slow death of personal computing, capacity will improve and prices will improve. In the shorter term sitting on an old computer or regressing a couple years on specs or paying an extra $100/$200 for 8GB/16GB works. > Even internet resources like servers will be hoarded by the hyperscalers that are the only ones who can affo…

Hyperscalers buy so many CPUs and so much RAM they can dictate prices (to a point) or at least make an agreement to buy at a much lower price but buy X amount for the next 5 years.

When the market's so hot I don't see why anyone would give them a particularly big discount. And they would have been getting a discount before, so they probably end up seeing a larger percentage spike in what they have to pay.

Maybe if they're locking in long enough to fund new fab construction? But in that case after a few years a ton of capacity will come online so they're actually helping solve the problem.

Re: Hetzner Price Adjustment

#262

Post by andix »

amoshebb wrote: post #260
andix wrote: post #123

Earlier quoted context omitted.

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…

I’m not a business person, but they’re already at the “hundreds of thousands of servers” scale, what about the 41st data center be organizationally far more expensive than the first 40?

Simple example: Pizza delivery service. The company runs very well, customers are happy, demand increases. At some point the demand gets so high, that they need to buy a second car for deliveries and a second pizza oven.

They look at the numbers and see the risk of making less profit than before, if they expand. Especially if demand decreases at some point, instead of growing further. So they decide to just raise the prices, lower demand and make even more money without additional risk.

Re: Hetzner Price Adjustment

#263

Post by kuerbel »

colechristensen wrote: post #167
surgical_fire wrote: post #163

Earlier quoted context omitted.

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

It is supply and demand but chip supply isn't very elastic and the producers are conservative about adding capacity that won't be needed by the time it's online.

SK Hynix just said they want to double wafer production by 2031.

Re: Hetzner Price Adjustment

#264

Post by Dylan16807 »

benjiro29 wrote: post #142
duttish wrote: post #104

Earlier quoted context omitted.

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.

They are scaling up, but most will only come online in end 2027-2028 time frame. And Memory, as in what we use in PCs is easier to manufacture then HBM memory. But all the money is in HBM ... So for every ~4GB of memory that you can produce in normal DDR5, you can only make 1GB of HBM. But you make multiple times the revenue. The demand for HBM memory is not going to go away. LLMs are memory bandwidth hungry, and we…

This does suggest a path to improvement, though. A significant factor in the demand for HBM is how expensive the actual GPU chips are, making you want to use the absolute best memory to support them. When there's more competition in GPUs and the memory is actually a lot of the total price, you see things like Apple silicon with LPDDR5 being very popular. You can get a lot of bandwidth out of normal memory if you put in 256 or 512 bit bus. If we can get more midrange competition, we can focus more manufacturing capacity back on some form of DDR, and lessen the squeeze.

Re: Hetzner Price Adjustment

#265

Post by dllrr »

I just used Claude to convert my app to a serverless architecture and migrated to Cloudflare and their generous tiers. Not every app fits that model, but it's more than you'd think. Now I only pay when the app is used, not a penny more.

Re: Hetzner Price Adjustment

#266

Post by alberth »

I use to be a huge Hetzner fan but it doesn't appear they have launch any new hardware in the past 3-years.

One of the reasons why I loved Hetzner so much is that you could always get the latest generation hardware ... but unless I have missed it - it seems like their hardware hasn't been refreshed in awhile.

(Still really like them, just wish they had dedicated servers in the US as well)

EDIT: maybe what I use in hardware is uncommon, but have been wanting an update to their AX102 line

https://www.hetzner.com/dedicated-rootserver/ax102-u/

Re: Hetzner Price Adjustment

#267

Post by iririririr »

benjiro29 wrote: post #142
duttish wrote: post #104

Earlier quoted context omitted.

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.

They are scaling up, but most will only come online in end 2027-2028 time frame. And Memory, as in what we use in PCs is easier to manufacture then HBM memory. But all the money is in HBM ... So for every ~4GB of memory that you can produce in normal DDR5, you can only make 1GB of HBM. But you make multiple times the revenue. The demand for HBM memory is not going to go away. LLMs are memory bandwidth hungry, and we…

until china reveals a fab opening up next week.

Re: Hetzner Price Adjustment

#268

Post by justincormack »

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.

Graviton 5 is 9% more expensive than previous generation https://www.theregister.com/paas-and-iaas/2026/06/11/gravito... which isnt strictly an increase but shows direction.

Re: Hetzner Price Adjustment

#269

Post by antonkochubey »

alberth wrote: post #266

I use to be a huge Hetzner fan but it doesn't appear they have launch any new hardware in the past 3-years. One of the reasons why I loved Hetzner so much is that you could always get the latest generation hardware ... but unless I have missed it - it seems like their hardware hasn't been refreshed in awhile. (Still really like them, just wish they had dedicated servers in the US as well) EDIT: maybe what I use in ha…

it's not that bad, EX63 dedicated servers were a great deal until this week (especially with 192 GB ECC RAM upgrade) and it has a 2025 CPU, for example

Re: Hetzner Price Adjustment

#270

Post by pixl97 »

kuerbel wrote: post #263
colechristensen wrote: post #167

Earlier quoted context omitted.

It is supply and demand but chip supply isn't very elastic and the producers are conservative about adding capacity that won't be needed by the time it's online.

SK Hynix just said they want to double wafer production by 2031.

I mean, I want to double the the number of billions of dollars I have by 2031, doesn't mean I will. (actually I have 0 billion and double 0 billion is still 0 billion, so unlike them I'll accomplish that goal).
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