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I have experience running Kubernetes clusters on Hetzner dedicated servers, as well as working with a range of fully or highly managed services like Aurora, S3, and ECS Fargate. From my experience, the cloud bill on Hetzner can sometimes be as low as 20% of an equivalent AWS bill. However, this cost advantage comes with significant trade-offs. On Kubernetes with Hetzner, we managed a Ceph cluster using NVMe storage, MariaDB operators, Cilium for networking, and ArgoCD for deploying Helm charts. We had to handle Kubernetes cluster updates ourselves, which included facing a complete cluster failure at one point. We also encountered various bugs in both Kubernetes and Ceph, many of which were documented in GitHub issues and Ceph trackers. The list of tasks to manage and monitor was endless. Depending on the number of workloads and the overall complexity of the environment, maintaining such a setup can quickly become a full-time job for a DevOps team. In contrast, using AWS or other major cloud providers allows for a more hands-off setup. With managed services, maintenance often requires significantly less effort, reducing the operational burden on your team. In essence, with AWS, your DevOps workload is reduced by a significant factor, while on Hetzner, your cloud bill is significantly lower. Determining which option is more cost-effective requires a thorough TCO (Total Cost of Ownership) analysis. While Hetzner may seem cheaper upfront, the additional hours required for DevOps work can offset those savings. |
I'd like to see your breakdowns as well, given that the cost difference between a 2 vCPU, 4GB configuration (as an example) and a similar configuration on AWS is priced much higher.
There's also https://github.com/kube-hetzner/terraform-hcloud-kube-hetzne... to reduce the operational burden that you speak of.