Hetzner price increases by 20-30 % - other hosting providers soon to follow

[necrevistonnezr]

@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

[robi]

@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.

[crazybrad]

@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.

[necrevistonnezr]

And now imagine what happens if China takes Taiwan by 2027, as US officials have told tech CEOs (Apple, AMD, Nvidia, Qualcomm, etc.) since 2022:

In secret briefings held in Washington and Silicon Valley, national security officials warned executives from companies like Apple, Advanced Micro Devices and Qualcomm that China was making plans to retake Taiwan, which Beijing has long considered a breakaway territory. A Chinese blockade of Taiwan, the officials said, could choke the supply of computer chips made on the island and bring the U.S. tech industry to its knees. […]
“The single biggest threat to the world economy, the single biggest point of single failure, is that 97 percent of the high-end chips are made in Taiwan,” Treasury Secretary Scott Bessent said last month at the World Economic Forum in Davos, Switzerland, slightly overstating industry estimates. “If that island were blockaded, that capacity were destroyed, it would be an economic apocalypse.”

https://www.nytimes.com/2026/02/24/technology/taiwan-china-chips-silicon-valley-tsmc.html

[p44]

@necrevistonnezr Yes, this could bring in mid term to a reshoring of production plants?

[Teiluj]

@robi My experience corroborates yours - I actually contacted SSDNodes earlier this week, wanting to lock in prices now for some servers due to renew later this year in the fall.
They replied that there would be no increase in prices on the renewal until then. Of course no guarantee and things can change between now and then but for now, I am inclined to leave them the benefit of the doubt.

In parallel, the quotes/offers I am getting for physical server hardware have a 3-days lifetime max, due to availability of parts and prices fluctuation. Forget about comparing offers from multiple suppliers in this situation: one needs a short decision-making path to make these effective in these conditions.

[robi]

@Teiluj Yes, and since most of their workloads are virtual, they can shift what runs where, keeping the status quo.

[necrevistonnezr]

@p44 said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:

@necrevistonnezr Yes, this could bring in mid term to a reshoring of production plants?

Problem is: It takes a long time to build such production lines and have it actually produce appropriate yield. It's a highly sophisticated process where the US and Europe currently neither have the knowledge nor the production capabilities. Blinded by greed (and I include us customers going for the lowest prices possible), we have outsourced vital industries and there's no easy turning back.

[crazybrad]

@necrevistonnezr I have a friend who worked in the semiconductor industry in the U.S. This has been a several decade process of exiting chip manufacturing, especially "commodity" chips like memory. Memory chip manufacturers experienced boom/bust cycles tied to chasing demand, building factories, only to find them empty after demand stabilized. In my opinion, their assessment today to jack up prices and build nothing is the result of their past experiences.

Unfortunately through intense regulation (many would argue appropriate regulation), other countries have taken a more laissez faire attitude about making semiconductors and have reaped the economic benefit. But many of the chemicals used in semiconductor manufacturing are endocrine disruptors, highly toxic in other ways and generally difficult to protect production workers.

But that (and enormous capital costs) may explain why America and Europe were less interested in producing chips. Again, "short-term, earnings this year above all else, share buyback" mentality that seems to prevail in Western economies justifies a "buy" instead of "make" strategy.

[crazybrad]

Thought I would share an update from U.S. based resellers. The supply environment is not good. Mfr prices on components and services are rising. It is unknown when backlogs will be satisfied. Bottom line: it will be chaotic.

[necrevistonnezr]

@crazybrad said:

Thought I would share an update from U.S. based resellers. The supply environment is not good. Mfr prices on components and services are rising. It is unknown when backlogs will be satisfied. Bottom line: it will be chaotic.

Thanks. I sort of puzzles me that it hasn’t reached the public and politicians eye how much of a threat this is to the economy and overall inflation. But then again, there’s too much sh*t going on elsewhere…
We predict a lot of lay-offs, delayed innovation due to unavailability of hardware, even more strengthening of China‘s aggressive economic expansion (yes, yes, the US is equally as bad but a whatsboutism doesn’t help anyone), and surging prices for all kinds of products (also partly to profit-led inflation or greedflation).
We just learned that farm tractors are surging in price as they are rolling servers these days (measuring and calculating the best route on a field, sometimes even driving autonomously, measuring humidity and quality of the soil, etc.etc.)

[crazybrad]

@necrevistonnezr You raise some excellent points. I think it's also interesting how Apple has just released the Neo, a $599 ($499 for education market) laptop that many here in the U.S. are predicting will really challenge Microsoft's WIN 11. The fact that Apple has a tight control on its supply chain (something you already mentioned) and able to deliver product at scale might be the deciding factor (ignoring the OSX vs. WIN debate). Students can not wait for the computer industry to sort out this mess. They reach various stages and need a computer to continue their education. And if Apple has the product, they win by default.

And your comment about farm tractors is really interesting. Perhaps this is an untapped Cloudron server market. @girish Perhaps we should consider packaging farming-related applications:)

[humptydumpty]

All I'm going to say is F John Deere with big, bold, capital letters. If you're an American, you most likely know why. If not, watch these if interested.

[crazybrad]

@humptydumpty This is a big problem. I was shocked to see that as of 2026, only 4 out of 50 states had passed the "right to repair". But if Chinese AI companies can used "distillation" to create new AI models, then perhaps the same approach could be used to create a digital twin of a tractor and then replace proprietary software with open source software.