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Hetzner Prices increase 30-40%

docs.hetzner.com

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Re: Hetzner Prices increase 30-40%

#372
post #355

Earlier quoted context omitted.

Saying this is just the market...is like saying housing is a free market after hedge funds buy your entire neighborhood...

People love to say that but they own a very small percentage of housing in reality. What’s driving housing costs is also supply and demand. Especially supply, since we’re not allowed to build any houses in most places people want to live.

Read your response again. You are reinforcing my argument in case you did not notice...

Re: Hetzner Prices increase 30-40%

#373

Running a small project on Hetzner from Germany. Got the email this morning. Honestly, even after the increase their dedicated boxes are still absurdly cheap compared to what you'd pay at AWS or GCP for equivalent specs. The real story here isn't Hetzner being greedy. It's that AI companies are vacuuming up every DRAM chip on the planet and the rest of us get to pay the tax. I priced out a RAM upgrade for my home ser…

1) this reads like it's posted by an LLM

2) why could they not just up the prices for new deployments, like they did with their dedicated servers? I think that would be fairer to existing customers

If you have a company, I can recommend leaseweb for cheap hosting. I host my personal stuff like my email and my ente.io instance there. They are cheaper than Hetzner (already before the new price increase) if you don't need managed k8s.

Re: Hetzner Prices increase 30-40%

#374

Running a small project on Hetzner from Germany. Got the email this morning. Honestly, even after the increase their dedicated boxes are still absurdly cheap compared to what you'd pay at AWS or GCP for equivalent specs. The real story here isn't Hetzner being greedy. It's that AI companies are vacuuming up every DRAM chip on the planet and the rest of us get to pay the tax. I priced out a RAM upgrade for my home ser…

> It's that AI companies are vacuuming up every DRAM chip on the planet and the rest of us get to pay the tax. DRAM is priced based on supply and demand, like every other market. When demand goes up, the price goes up for everyone. It’s not a “tax” on the rest of us in any sense. There’s just a lot of demand everywhere. > That's not normal market dynamics. This is actually a textbook example of markets functioning in…

> This is actually a textbook example of markets functioning in response to a demand shock where supply cannot be increased rapidly.

The problem is that demand is being propped up by speculative capital. The AI companies are a bubble that is suffocating productive parts of the market with the hording of capital which they're now using to also hoard hardware. All this without making money for data centres that aren't build yet, for a handwavy promise that an AGI will magically solve all the worlds problems.

This is not normal, and it is not good for the broader economy.

Re: Hetzner Prices increase 30-40%

#375

Earlier quoted context omitted.

They effectively do. They’re trained by brute forcing 100TB of training data through them, rather than any logical learning technique. A human doesn’t need 100TB of books to learn the alphabet.

> A human doesn’t need 100TB of books to learn the alphabet. A human does need 16ish hours per day of audio/video content for several years to learn the alphabet.

[flagged]

Re: Hetzner Prices increase 30-40%

#376

Earlier quoted context omitted.

Saying this is just the market...is like saying housing is a free market after hedge funds buy your entire neighborhood...

correct, both of those things are examples of free markets

Incumbent owners preventing the construction of more supply to maintain their own property values is not "free market". This is very basic stuff

Re: Hetzner Prices increase 30-40%

#377

Earlier quoted context omitted.

> A human doesn’t need 100TB of books to learn the alphabet. A human does need 16ish hours per day of audio/video content for several years to learn the alphabet.

[flagged]

I don't listen to Altman. Feel free to take this kind of comment somewhere else.

Re: Hetzner Prices increase 30-40%

#378

A significant part of this is probably just the hockey-stick growth in the price of memory we have seen in the past 6 months. Would be surprised if this wasn't impacting their bottom line for maintenance.

There is another factor at play here: EU hosting providers that are not owned lock, stock & barrel are few and far between and Hetzner has a very nice sales representative in the White House.

Yeah, also Hetzner is smart enough to realize that a lot of people are moving to them who are "Buy EU"-driven and are less price sensitive (certainly the most valuable ones are). Hopefully they can take these higher prices and further invest into the platform.

Re: Hetzner Prices increase 30-40%

#379
post #329

Earlier quoted context omitted.

Measuring CPUs by thread count and clock speed is not a good way to gauge performance. A current gen CPU would be several times faster than this old CPU. Depending on workload, this old CPU might be as slow as a 2 thread or even 1 thread current gen server.

It does 8000 CPU marks with 4 cores. Sure Xeon 674X does 83641 with 28 cores. But show me where can you find it for less than 10 times the price? And with 320GB RAM, 10TB of NVMe SSD storage and 10 GBit/s of "unlimited" bandwidth

More than that, compare it to modern cloud CPUs. Epyc 9845 gets 153000 but that's with 160 cores / 320 threads. Per core it's under 1000 and 4 cores would be 3825 when the 11-year-old i7 is 8000.

Because those big systems are optimized for power efficiency. That Epyc is ~2.4W/core compared to ~16W/core for the old i7. It has a lower base clock and is Zen5c. If we cut the 8-core Ryzen 9850X3D's score in half, 4 Ryzen cores from the same generation but with a higher base clock and six times the L3 cache per core would be 20942. But it's also back up to 15W/core. The Epyc still has better performance per watt.

The newer cores are significantly more efficient. That doesn't mean they're unconditionally faster independent of all other variables.

Re: Hetzner Prices increase 30-40%

#380

Earlier quoted context omitted.

"The real story here isn't Hetzner being greedy. It's that AI companies are vacuuming up every DRAM chip on the planet and the rest of us get to pay the tax." We might also have our aquifers depleted and our electricity prices skyrocket. But at least we see really great benefits, such as being able to script some side-project while unemployed due to AI.

Anyone who thinks modern data centers don’t use recirculated water can safely have their opinions summarily discarded.

Anyone who thinks that modern data centers don't evaporate their "recirculated FRESH water" straight into the ocean can safely have their opinions summarily discarded.
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