It's not just Hetzner cloud; got an email about increase prices on my dedicated server.
Hetzner Prices increase 30-40%
411–420 of 662 posts
Re: Hetzner Prices increase 30-40%
#412Earlier 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.
> not allowed to build any houses in most places people want to live
Or to convert them into apartment buildings
Re: Hetzner Prices increase 30-40%
#413Running 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…
"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.
>aquifers depleted
Oh it's this thoroughly debunked talking point again.
https://andymasley.substack.com/p/the-ai-water-issue-is-fake
Re: Hetzner Prices increase 30-40%
#414Earlier quoted context omitted.
> 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…
> 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. > This is actually a textbook example of markets functioning in response to a demand shock where supply cannot be increased rapidly. You act like it's a competitive market. It's not the case. It's an oligopoly with an extremely inelastic supply side. The market is already co…
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Re: Hetzner Prices increase 30-40%
#415Earlier quoted context omitted.
> 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…
Most markets don't have three purchasers trying to corner the entire supply of one product.
I guess we’d call this oligopsony?
The monopsony (single buyer of a good) equivalent of an oligopoly?
Phew, it is a word, but not a highly studied one!
Re: Hetzner Prices increase 30-40%
#416Hm the pricing increase stresses me out out less than the server shortages. My impulse reaction is to buy a few cheap cloud VPS instances even though I don't need them right now... Anyone have any wisdom to encourage/discourage this?
Re: Hetzner Prices increase 30-40%
#417Earlier quoted context omitted.
Where are these unregulated markets? Are you trading with your neighbor? If so, good, the more of that the better.
An example of unregulated market is where I come to your house and put a gun to your head and in exchange for not pulling the trigger you give me your various items of value. That's one form of trading with your neighbor.
I think you have gone in the end of the spectrum, in a sense that even a state law's are being broken, we are talking about rules in the market itself.
Re: Hetzner Prices increase 30-40%
#418Earlier quoted context omitted.
If your only need is a lot of bandwidth with very low server CPU use that’s fine. That CPU is ancient, though. Over a decade old. That DRAM is 2-channel DDR3. This could be a good deal for someone, but entrusting your startup’s operations to a 10 year old slow computer in Germany instead of using EKS would be an extremely short sighted move. A startup should be developing software and shipping it quickly to validate…
>That CPU is ancient, though. Over a decade old. Coincidentally so are the t3 / t3a instances on AWS that everyone loves to use especially for dev/staging environments
10 years is where hardware failure rates start ramping quickly, in my experience.
Not necessarily obvious failures, but subtle errors, memory problems (like this case without an ECC capable CPU) and little instabilities.
With cloud instances I can migrate to a new instance with a couple clicks if I want.
Trying to save a couple hundred euros per month on hosting costs needs to be balanced against the risks and extra developer time.
For personal projects these old instances can be an excellent deal though.
Re: Hetzner Prices increase 30-40%
#419Earlier quoted context omitted.
> 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…
Can't agree more. We can also predict with some confidence that in a year or two, supply would have adjusted and ram will be cheaper in the long run. We benefit from the expanded demand even if the fact that it first lands as a shock is disruptive to prices.
If the last five or so years are to go by, we'll just have another pricing shock by then. So yay.
Re: Hetzner Prices increase 30-40%
#420BuyFromEU is the funniest subreddit there is right now. Unintentionally but still entertaining. EU has managed to paint itself into unenviable corner. I can't buy from EU even thought I want to because for physical goods - cross country shipping costs are prohibitive and for digital - they are either subpar, more expensive or both. Try this as experiment - try to buy something like precision dowel pins from Poland or…
The reverse is true too. The shipping costs from US -> EU are prohibitively high, oftentimes making ordering stuff from the US a no go. I think only Amazon (for certain products at least) charges somewhat reasonable shipping costs.
China has an enormous leg wrt shipping.