[benjiro29]

These prices have absolute nothing to do anymore with memory prices. Do not forget that Hetzner already increased the setup fees by a factor of 4x before to compensate for the price. And also servers getting price increases.

It seems they have shifted by reducing the setup fees, and increasing the monthly costs. As this generates more revenue. And its easy to prove this...

AX42 ... Its 8700GE that has gone from 65 Euro to 225 Euro. With the setup fee now being 112 Euro instead of 225 Euro. It has 64GB memory, and 1TB storage. The storage even in todays market is 100 Euro. The memory is 644 Euro.

Do the math ... Hetzner servers had a hardware payback periode of between 9 to 11 month if you took the market value. This calculation has always been very stable over the 20 years i used Hetzner.

This new price, reduced the hardware payback periode to ~4 month. It seems to be that Hetzer is trying to use the memory price issues, as a excuse. The revenue of those same servers now increased to a insane level. More revenue with less hardware.

The real issue is that a lot of companies are moving from US hosting to EU hosting because of the problems with the US. Hetzner sees this as the perfect time to cash in on Enterprise customers.

They have been trying to replace the "cheap" normal consumers with enterprise. This trend has been going on for a while already.

Every customer that now leaves, is a server they can rent out to business customers.

If you want to see the same thing, look up what happened to Microsoft/Github Copilot where they turn around has been sudden and very strong, with a clear goal of moving everything to enterprise.

[pocksuppet]

The big increases here are for their cloud product, which is hourly billing with no setup. In that context it seems more reasonable. I guess we need to remember that hourly billing and flexible prices cut both ways, eh?

[mschuster91]

> It seems they have shifted by reducing the setup fees, and increasing the monthly costs.

Monthly costs have gone up as well. Payroll has seen significant increases in Germany, construction has exploded far beyond inflation and, most importantly, electricity prices are still ridiculous due to merit-order and the refusal of splitting up Germany into multiple power pricing regions.

[benjiro29]

I remember the price increase that Hetzner did during 2022 because of the invasion in Ukraine. The said they will adjust the prices down when the electricity price reduced.

Guess what? I am paying as a consumer about the same price as before 2022. Did Hetzner change their price down? Remember, the industrial price also dropped (and they also build out a large solar plant). No ...

Ok, inflation? But those price increases already covered part of that... Just saying, its not been the first price increase that happened. There have been multiple ones that Hetzner did over the years. Some flew under people radars.

> Payroll has seen significant increases in Germany,

Yea, we have seen nothing of that increase... O, wait, they reduce our income because the social security increase their costs. Yay ..

[pocksuppet]

Since I started using Hetzner in 2020 they have increased prices 4 or 5 times and I am now paying 50% more than I started, but my grocery bill also went up 50% and my rent went up 50%, so that's just matching inflation (even though the government said inflation was 5%). Now they're doing a 300% increase (not for me) all at once.

[omnimus]

The reasons really doesn't matter. As long as they are in top of price/performance/quality nobody will switch. Once they stop to be then people will think about it.

[benjiro29]

> As long as they are in top of price/performance/quality nobody will switch.

Very sure that those new prices has put them out of the whole price/performance/quality bracket.

* Past: consumer level hardware for basic support, and low prices.

* Now: consumer level hardware for basic support, and extreme high prices.

So the entire peg for their hardware choice vs pricing, has collapsed.

[omnimus]

If the rest of the market stays at current prices sure. It's very likely that Hetzner is just popular and ran out of hw quicker than others. I doubt they changed their market strategy, they are probably just being realistic. We will see if/when the hikes come to others.

What sucks is that it might just be that hyperscalers have long term hw contracts and completely starve any competition.

[rigonkulous]

Also, a price increase like this can be used to address over-subscription/under-utilization .. there will be a lot of dormant chaff blown off by this, or in other words the provisioning demand will also be adjusted by this aggressive price change, imho.