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Hetzner Price Adjustment

docs.hetzner.com

691–700 of 794 posts

Re: Hetzner Price Adjustment

#692

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.

I heard a long time stock market analyst saying the semiconductor industry always has boom and bust cycles. This is a boom (for the semiconductor industry) and it will be followed by a bust as demand rapidly drops off, just like every other time.

Re: Hetzner Price Adjustment

#693

Earlier quoted context omitted.

Also worth noting: They sold their allocations to people who don't have a clear path to profitability, and were paid with massive amounts of money that don't exist in reality.

> and were paid with massive amounts of money that don't exist in reality How's that possible?

I agree to pay you within 90 days of receiving the product, which you'll send me in 6 months. You get to count this promise as income i've paid you right now. 9 months later I might or might not have the money to pay it for real.

The principle works for stable regular businesses where invoices do get paid, not for bubbles.

Re: Hetzner Price Adjustment

#694
post #578

Earlier quoted context omitted.

GP's point is this isn't the 2nd car, this is the 41st car. If they had 1 car it'd be a 2x increase. If they have 40 cars, the only way the 41st car would lead to a 2x increase is if that single car cost as much as 40 other cars. That's what the post you're responding to was asking.

The real question is whether it's actually just the 41st car or if the demand is such that they'd have to go from 40 cars to 200 and then risk having the demand fall back off after they've already sign on to making 160 more car payments.

For the 41st car they might need to build a new parking deck. Or hire a fleet manager, because the COO can't handle it anymore. They might already run over planned capacity and every new vehicle makes it exponentially worse.

For bigger orgs the bottlenecks are a bit more vague, but they still exist.

Re: Hetzner Price Adjustment

#695
post #637

Earlier quoted context omitted.

Also they're mostly a VPS provider with some "dedicated servers" available after you talk to sales. Hetzner is great because you can build from dedicated servers your own infra and not suffer the multi tenant issues on virtualized servers. (IOPS exhaustion for example)

What are you talking about? They have plenty of dedicated servers available at the click of a button...

https://3hcloud.com/pricing#Dedicated-servers

Dedicated servers

Looking for bare metal? See all available configurations here. and "here" is linked to

https://3hcloud.com/contact/sales

Re: Hetzner Price Adjustment

#696

Earlier quoted context omitted.

No, the quote is regularly brought out as a justification to ignore long-term and even medium-term effects whenever the result is anything less than instantaneous. Even right now we're in a discussion about manufacturing where the lead time is a low single digit number of years. The expectation that we'll all be dead before it shakes out is rather implausible but there is the quote. And there are no valid theories th…

I don't think the quote is particularly on point in this discussion, but that doesn't make your understanding of Keynes correct (and your misunderstanding doesn't make much sense in the context of this particular discussion either). And I tend to agree with /u/bayindirh that the original optimism of /u/Dylan16807 is baseless. We don't know have things will turn out, but it's absolutely not guaranteed that we'll ever…

Very narrow? The masses could get a computer for almost all the time integrated circuits have been produced.

And the entire time, better manufacturing pushed prices down at least every few years. Including RAM going up multiple times. We would have to buck that entire trend on top of having a failure of supply and demand to end up with the current prices being permanent.

(And don't be dramatic. Even at current prices, computers are available for the masses.)

Re: Hetzner Price Adjustment

#697

Earlier quoted context omitted.

No, the quote is regularly brought out as a justification to ignore long-term and even medium-term effects whenever the result is anything less than instantaneous. Even right now we're in a discussion about manufacturing where the lead time is a low single digit number of years. The expectation that we'll all be dead before it shakes out is rather implausible but there is the quote. And there are no valid theories th…

> No, the quote is regularly brought out as a justification to ignore long-term and even medium-term effects whenever the result is anything less than instantaneous. If the quotation is misused that is hardly the fault of Keynes: > The Tract is the source of Keynes's famous remark, "in the long run we are all dead." This occurs in the context of noting that price level should vary in direct proportion to money quanti…

Looking out ten years is an easy answer but that doesn't make it a wrong answer. I didn't choose the time period, the person calling this the slow death of personal computing did. And these computer prices are life and death for extremely few people.

Re: Hetzner Price Adjustment

#698

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.

> 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…

So far its just metastasized not smoothed out. GPUs then RAM then electricity then disk… long way to go till land then sunlight, hope we don’t get there!

Re: Hetzner Price Adjustment

#699

Hetzner Founder and CEO Martin Hetzner shared a response to the critics in the Hetzner Forum (user benji) over here: https://forum.hetzner.com/index.php?thread/32635-standardisi... Translated from German via Claude: "For better understanding, I would like to provide some additional notes: Hetzner Online's pricing strategy has remained unchanged for many years. Our prices are based on the respective purchasing conditi…

afaik prices for the big cloud providers haven't changed this much. Their instance prices are already inflated and they're probably willing to eat into their own margins to keep prices stable and just wait out the capex increase (also probably a drop in the bucket next to the hyperscale rollout).

People love to say how great it is for these alt clouds to have lower prices, until they're exposed to market forces with a company unable or unwilling to eat their profit margins.

Re: Hetzner Price Adjustment

#700
post #189

Earlier quoted context omitted.

> Have no clue what's going on in the back Hetzner and OVH and other bare metal but low cost providers use commodity hardware. When that commodity hardware increases there is simply no other option. The secret to the success of these providers is using common off-the-shelf hardware instead of specialized server hardware, which is now being cannibalized.

doesn't this imply that they buy massive hardware and thus replace their hardware constantly? At what rate? It seems the rate is massive. I'd gladly use a 4year old server for the old price.

The lowest prices are for hardware much more than 4 years old though: take OVH's Kimsufi, they use CPUs that first launched in 2015, 2017, 2018, ...
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