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Dedicated servers on a host like Hetzer and OVH surely beats any virtualization based cloud offering on price and performance. The tradeoff is availability. It's a great choice for entities that are optimizing on cost, but not a great choice if your business cannot tolerate downtime. A good example is a the big lichess outage from last year [1]. Lichess is a non-profit, and also must serve a huge user base. Given their financials, they have to go the cheap dedicated server route (they host on OVH). They publish an Excel sheet somewhere with every resources they use to run the services and last year, I had fun calculating how much it would cost them if they were using an hyperscaler cloud offering instead. I don't remember exactly but it was 5 or 6x the price they currently pay OVH. The downside, is that when you have an outage, your stuff is tied to physical servers and they can't easily be migrated, when cloud provider on the opposite can easily move around your workload. In the case of Lichess outage, it was some network device they had no control of that went bad, and lichess was down until OVH could fix it, that is many hours. So, yes you get a great deal, but for a lot of businesses, uptime is more important than cost optimization and the physicality of dedicated servers is actually a serious liability. [1]: https://lichess.org/@/Lichess/blog/post-mortem-of-our-longes... |
Even hosting double of everything when you're doing dedicated servers will let you have cheaper monthly bills, compared to the same performance/$ you could get with AWS or whatever.
But Hetzner does seem a bit worse than other providers in that they have random failures in their own infrastructure, so you do need to take care if you wanna avoid downtime. I'm guessing that's how they can keep the prices so low.
> is that when you have an outage, your stuff is tied to physical servers and they can't easily be migrated
I think that's a problem in your design/architecture, if you don't have backups that live outside the actual servers you wanna migrate away from, or at least replicate the data to some network drive you can easily attach to a new instance in an instant.