Hetzner price increases by 20-30 % - other hosting providers soon to follow
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@necrevistonnezr yes... let’s see what other providers will do... I’m monitoring Infomaniak and Netcup
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@p44 said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
If the market does not react to these unilateral changes, ISPs will always have the option to raise prices as they see fit...
That's exactly what's happening currently. Providers are backed against a wall. The market for RAM and SSD is small; the few remaining players can more or less do what they want. This has repercussions to all server hardware and consumer hardware. I work for a large IT-reseller, we've seen hardware price increases by all major players in the range of 200 - 500 %.
@necrevistonnezr said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
hardware price increases by all major players in the range of 200 - 500 %
Funnily enough, that crazy price increase/markup is limited to +16GB sticks only when it comes to second-hand hardware at least. I'm trying to sell my stock DDR5 laptop memory (8GBx2) and they're not moving.
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@necrevistonnezr Incredible numbers you mentioned. How can businesses afford to pay 200-500% more on these hardware items? As a result, do you expect sales of new servers, PCs, laptops to fall dramatically? Resale margins are very small. So costs must be passed along to buyers.
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Our current predictions are:
- Consumers and tax payers (because "consumers" include governmental institutions) will - once again - be faced with unprecedented price surges (hence "imported inflation") and hardware shortages; it will be worse than during the pandemic.
- It will stay this way at least until the end of 2027, possibly until 2030 (see interview with the Micron CEO)
- Consumer hardware will - if available at all - see downgrades in specs instead of the usual upgrades. A positive aspect: Maybe we'll see even more spec-efficient hardware (like Apple M chips).
- It is possible that one or more of the consumer hardware branches of large producers (think Acer, Asus, Dell, Lenovo..) will not survive 2026/2027
- It is likely that several IT-hardware resellers (the ones that e.g. supply schools or companies with 10.000+ devices) will not survive, either.
- Even longstanding agreements with fixed pricing are not worth their paper. All of our suppliers are openly in breach of contract - but since we all don't have an alternative, you can't do much without suing. We still refrain from that since it's costly and not good for business, but it might end up in a legal war.
You know a company who hasn't increased prices on this occasion? Apple. But they are famous for their control over its supply chain.
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Netcup is next (https://forum.netcup.de/informationen/netcup-community/netcup-updates/p260826-rampocalypse-an-honest-update-on-the-hardware-situation/#post260826#09) :
First and foremost, we are cancelling the announced sale - it would send the wrong signal. This situation affects the entire European hosting industry - major providers have already announced price increases for both new and existing customers. This doesn't just impact new systems, but also hardware renewals and replacements. It reverberates all the way through the datacenter.
We know that some of you are frustrated and disappointed - we understand, because we're in the same boat.
This is where things stand right now - fully transparent and unvarnished.
We will do everything we can to keep the impact on you as small as possible - but realistically, there will be some impact.
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Our current predictions are:
- Consumers and tax payers (because "consumers" include governmental institutions) will - once again - be faced with unprecedented price surges (hence "imported inflation") and hardware shortages; it will be worse than during the pandemic.
- It will stay this way at least until the end of 2027, possibly until 2030 (see interview with the Micron CEO)
- Consumer hardware will - if available at all - see downgrades in specs instead of the usual upgrades. A positive aspect: Maybe we'll see even more spec-efficient hardware (like Apple M chips).
- It is possible that one or more of the consumer hardware branches of large producers (think Acer, Asus, Dell, Lenovo..) will not survive 2026/2027
- It is likely that several IT-hardware resellers (the ones that e.g. supply schools or companies with 10.000+ devices) will not survive, either.
- Even longstanding agreements with fixed pricing are not worth their paper. All of our suppliers are openly in breach of contract - but since we all don't have an alternative, you can't do much without suing. We still refrain from that since it's costly and not good for business, but it might end up in a legal war.
You know a company who hasn't increased prices on this occasion? Apple. But they are famous for their control over its supply chain.
@necrevistonnezr if what you're saying is REMOTELY accurate, then it would be wise to stock up on older but high-end tier gen parts to survive the ai craze. ebay, here I come!
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That's whats already happening...
In Tokyo's electronics hub of Akihabara, stores are restricting purchases of memory products to curb hoarding. A sign outside PC shop Ark says that since November 1 customers have been limited to buying a total of eight products across hard-disk drives, solid-state drives and system memory. Ark declined to comment.
https://www.reuters.com/world/china/ai-frenzy-is-driving-new-global-supply-chain-crisis-2025-12-03/
In addition, there are reports that OpenAI employees have been urged to buy up all the RAM that is still available in local electronics stores. Such measures are probably not only intended to meet one's own needs, but also to block the competition.
https://www.linux-magazin.de/news/openai-will-von-samsung-40-prozent-der-dram-weltproduktion-kaufen/
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Netcup is next (https://forum.netcup.de/informationen/netcup-community/netcup-updates/p260826-rampocalypse-an-honest-update-on-the-hardware-situation/#post260826#09) :
First and foremost, we are cancelling the announced sale - it would send the wrong signal. This situation affects the entire European hosting industry - major providers have already announced price increases for both new and existing customers. This doesn't just impact new systems, but also hardware renewals and replacements. It reverberates all the way through the datacenter.
We know that some of you are frustrated and disappointed - we understand, because we're in the same boat.
This is where things stand right now - fully transparent and unvarnished.
We will do everything we can to keep the impact on you as small as possible - but realistically, there will be some impact.
I think European ISP are looking each other... first OVH, then Hetzner, then Netcup... then another one...
Instead of reduce or keep low gross margin and promote reshoring, they are raising prices...
I believe the price increases they are making are because their demand is also increasing in view of reshoring in Europe...
Yes... global market, increasing RAM, scarce disks... all BS... IMHO... any excuse is good.
Edit: In terms of communication, I liked Netcup's approach best: posting on a forum I think it was a better way to communicate a “bad” news to customers...
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I got a notice about price increasing from 65Eur to 66.95Eur so not a big % increase ... and I don't even have that server anymore ! Their comms are bit screwy. Waiting nervously for the price increase for the current server ... and Storage Box.
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@timconsidine worst increase I had is on CCX23 from 23.99 to 31.49... equal to 7,50 euros... +31%... one third of price... A completely abnormal increase, in my opinion.
