Hetzner price increases by 20-30 % - other hosting providers soon to follow
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@jdaviescoates now it REALLY doesn't make any sense. A dedicated server that has RESERVED memory for it is has barely any increase while cloud services with SHARED resources is charged 30% more? WTF.
@humptydumpty said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
@jdaviescoates now it REALLY doesn't make any sense. A dedicated server that has RESERVED memory for it is has barely any increase while cloud services with SHARED resources is charged 30% more? WTF.
We see server price increases for servers and storage in the region of 400-500 %, e.g. 50k instead of 10k. Think of having to replace 20 servers, you have extra costs of 800k, of you get them at all. Servers run for 3-5 years, max. That is a lot of extra costs.
This is neither arbitrary nor BS. This is currently a major crisis which will spill over in many areas and will impact inflation. Example: We have a large customer who cannot open his wind power park (gigawatts) because it needs powerful servers to run - which are not available at all. -
@humptydumpty said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
@jdaviescoates now it REALLY doesn't make any sense. A dedicated server that has RESERVED memory for it is has barely any increase while cloud services with SHARED resources is charged 30% more? WTF.
We see server price increases for servers and storage in the region of 400-500 %, e.g. 50k instead of 10k. Think of having to replace 20 servers, you have extra costs of 800k, of you get them at all. Servers run for 3-5 years, max. That is a lot of extra costs.
This is neither arbitrary nor BS. This is currently a major crisis which will spill over in many areas and will impact inflation. Example: We have a large customer who cannot open his wind power park (gigawatts) because it needs powerful servers to run - which are not available at all.@necrevistonnezr From my point of view as a Isp customer, changes should not be applied to long-standing users, and part of the costs should also be absorbed on to ISPs, who must be willing to reduce their gross margins.
When you say “we see,” are you speaking as an ISP? Which region are you referring to?
Edit: In 2022, several European providers raised their prices, justifying the increase due to higher gas prices. Now that gas prices have been normalized, have they lowered their prices?
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@p44 I agree with your logic. The equipment in house is bought and paid for and existing customers shouldn't have an increase, except...
@necrevistonnezr has explained that the cost of servers from his vantage point has increased 500%. That would mean that NEW customers would have to pay almost 5 times the amount for a new VPS. They just wouldn't, causing Hetzner's business to be capped at their current revenue base.I suspect that the 30+% increase for everyone is a way to spread the huge cost increase for new capacity over a wider base. I don't like it, it's unfair to those of us who either bought ahead of growing needs or those who needs are unchanged.
It should be interesting to see if any other VPS providers (e.g. Netcup, SSDNodes) decide to keep pricing the same for existing customers and keep their promises even under unforeseen market conditions. It would definitely earn loyalty from their customer base.
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@p44 I agree with your logic. The equipment in house is bought and paid for and existing customers shouldn't have an increase, except...
@necrevistonnezr has explained that the cost of servers from his vantage point has increased 500%. That would mean that NEW customers would have to pay almost 5 times the amount for a new VPS. They just wouldn't, causing Hetzner's business to be capped at their current revenue base.I suspect that the 30+% increase for everyone is a way to spread the huge cost increase for new capacity over a wider base. I don't like it, it's unfair to those of us who either bought ahead of growing needs or those who needs are unchanged.
It should be interesting to see if any other VPS providers (e.g. Netcup, SSDNodes) decide to keep pricing the same for existing customers and keep their promises even under unforeseen market conditions. It would definitely earn loyalty from their customer base.
@crazybrad Thanks for sharing your opinion.
There is also another aspect: could it be that Isp such as Hetzner has been offering below-cost prices in recent years to attract customers and can no longer afford to operate below cost in the market? If that were the case, the situation would be different at this point.
My main hypothesis is that with this increase, Hetzner will open or expand data centers paid for by us “loyal” users.
Over the years their service has remained the same: they haven't given anything extra - such as better customer service - to justify prices increase.
Raising prices for existing customers is a serious risk of losing them, and I agree with you when you say it's unfair.
Tomorrow morning, what will companies who base their infrastructure on Hetzner have to say to their customers?
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@humptydumpty said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
@jdaviescoates now it REALLY doesn't make any sense. A dedicated server that has RESERVED memory for it is has barely any increase while cloud services with SHARED resources is charged 30% more? WTF.
We see server price increases for servers and storage in the region of 400-500 %, e.g. 50k instead of 10k. Think of having to replace 20 servers, you have extra costs of 800k, of you get them at all. Servers run for 3-5 years, max. That is a lot of extra costs.
This is neither arbitrary nor BS. This is currently a major crisis which will spill over in many areas and will impact inflation. Example: We have a large customer who cannot open his wind power park (gigawatts) because it needs powerful servers to run - which are not available at all.@necrevistonnezr iirc last year (or two) I saw dedicated servers on sale that had first gen intel i5/i7. That's way beyond the 3-5 yr life expectancy. Like you said, this "wave" is unavoidable and everyone across all sectors need to compromise to stay up and running. Providers need to create MORE plans with some running on older tech. Let the need of each dictate who pays for the acquisition for the latest tech. I'm not saying the price increase isn't justified, but their strategy is. Currently, Cloud servers are seeing the biggest increase since those resources are shared. The math doesn't add up. Providers are doing it because they want to retain their dedicated customers and aren't afraid of losing VPS ones. As always, your average joe gets the shaft.
@p44 said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
Tomorrow morning, what will companies who base their infrastructure on Hetzner have to say to their customers?
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@necrevistonnezr iirc last year (or two) I saw dedicated servers on sale that had first gen intel i5/i7. That's way beyond the 3-5 yr life expectancy. Like you said, this "wave" is unavoidable and everyone across all sectors need to compromise to stay up and running. Providers need to create MORE plans with some running on older tech. Let the need of each dictate who pays for the acquisition for the latest tech. I'm not saying the price increase isn't justified, but their strategy is. Currently, Cloud servers are seeing the biggest increase since those resources are shared. The math doesn't add up. Providers are doing it because they want to retain their dedicated customers and aren't afraid of losing VPS ones. As always, your average joe gets the shaft.
@p44 said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
Tomorrow morning, what will companies who base their infrastructure on Hetzner have to say to their customers?
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@necrevistonnezr From my point of view as a Isp customer, changes should not be applied to long-standing users, and part of the costs should also be absorbed on to ISPs, who must be willing to reduce their gross margins.
When you say “we see,” are you speaking as an ISP? Which region are you referring to?
Edit: In 2022, several European providers raised their prices, justifying the increase due to higher gas prices. Now that gas prices have been normalized, have they lowered their prices?
@p44 said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
@necrevistonnezr
When you say “we see,” are you speaking as an ISP? Which region are you referring to?German speaking country, large IT service provider offering large volume hardware reselling, cloud services, XaaS, etc. B2B, only, a lot of public / governmental agencies, 4 bn+ revenue.
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@p44 said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
@necrevistonnezr
When you say “we see,” are you speaking as an ISP? Which region are you referring to?German speaking country, large IT service provider offering large volume hardware reselling, cloud services, XaaS, etc. B2B, only, a lot of public / governmental agencies, 4 bn+ revenue.
@necrevistonnezr said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
4 bn+ revenue
do you need a janitor?
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@necrevistonnezr said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
4 bn+ revenue
do you need a janitor?
@humptydumpty I can cover nights
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@necrevistonnezr said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
4 bn+ revenue
do you need a janitor?
@humptydumpty said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
@necrevistonnezr said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
4 bn+ revenue
do you need a janitor?
I don’t own it, I‘m just an employee
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@p44 I agree with your logic. The equipment in house is bought and paid for and existing customers shouldn't have an increase, except...
@necrevistonnezr has explained that the cost of servers from his vantage point has increased 500%. That would mean that NEW customers would have to pay almost 5 times the amount for a new VPS. They just wouldn't, causing Hetzner's business to be capped at their current revenue base.I suspect that the 30+% increase for everyone is a way to spread the huge cost increase for new capacity over a wider base. I don't like it, it's unfair to those of us who either bought ahead of growing needs or those who needs are unchanged.
It should be interesting to see if any other VPS providers (e.g. Netcup, SSDNodes) decide to keep pricing the same for existing customers and keep their promises even under unforeseen market conditions. It would definitely earn loyalty from their customer base.
@crazybrad this has been affecting new SSDnodes customers for at least 6-months. I actually called them to ask why their prices kept rising last year. They said infrastructure costs.
Since they do 3yr plans, I am not sure it will affect their existing customers unless they need to make any billing changes. Bigger buffer.
The shortages should resolve by then.
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@necrevistonnezr But do you know someone in HR that can get us all a job when AI replaces us:) Janitor, cafeteria cook. There are many talents hidden here.
Seriously, I am shocked that a company of your size and stature is being treated so poorly by vendors. If this is what your company is experiencing, then we all are in big trouble. Usually, it's the little people that get screwed. But when this is happening to the big and powerful too, it is beyond concerning.
