[harrall]

But VPS providers share the same hardware and overprovision. They don’t need to add new hardware every time a new customer signs up.

If you buy a dedicated server at Hetzner, you actually need immediate hardware.

Many VPS providers also just resell Hetzner, OVH or other dedicated servers so they won’t increase the price until their own provider does.

[Capricorn2481]

That's all true, but this seems disproportionate even to the hardware market. They already raised their prices recently as hardware got more expensive, and now they are quadrupled. Maybe I am just misreading the hardware market right now.

[markonen]

If you see photos/videos of Hetzner datacenters, their servers are essentially plain, low-end motherboards (1G network, few slots) sitting on shelves (don't mean that as derogatory, it's an efficient design). What it does mean is that their per-server costs are absolutely dominated by the very components that are exploding in cost right now: RAM, SSDs and (to a lesser extent) CPUs.

[re-thc]

> But VPS providers share the same hardware and overprovision.

Hetzner has a "cloud" offering. The price increases aren't small either.