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how come hetzner dedi is *so* much cheaper?
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how come hetzner dedi is *so* much cheaper?

Most vendors do dedicated servers starting at 99$ up at 4GB RAM and low-end Athlon CPUs. Hetzner starts with 70$ (49€) for 32GB and Core i7. Any reasoning?

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Comments

  • taronyutaronyu Member
    edited December 2013

    Because they can, they compensate the low price with their high setup fee.

  • Not really, the setup fee is made up for within 2 months. And, the "Server Bidding" (servers prepared and cancelled by other users) section has similar prices and no setup fees.

  • Well, the server may be cheap but getting more IPs or other services isn't. They probably earn a lot from those other services as well.

  • emreemre Member, LIR

    said: Most vendors do dedicated servers starting at 99$ up at 4GB RAM and low-end Athlon CPUs. Hetzner starts with 70$ (49€) for 32GB and Core i7. Any reasoning?

    beacuse Mr. Hans Hetzner whois the owner of the hetzner.com is married to Mrs. Helga Von AMD whois the grand daughter of Mr George AMD owner of AMD. They are doing a family business. Ok?

    getting cheap, selling cheap...

  • They sell in bulk while most datacenters choose to sell at a premium and offer a more "premium" experience to their clients. In reality their prices are right about even with the cost of the hardware/network/power plus 10 - 15% overhead for problems, profit, etc...

  • emreemre Member, LIR

    George AMD is Geoge Andreas Muller Dong.

  • emre said: eacuse Mr. Hans Hetzner whois the owner of the hetzner.com is married to Mrs. Helga Von AMD whois the grand daughter of Mr George AMD owner of AMD. They are doing a family business. Ok?

    They are doing family business selling Intel based servers?

  • Hetzner built their datacentre campus with a pile of local government money - they have a fantastically well designed set of buildings. I have been there and seen it. The building I saw was very energy efficient and their KWH cost is very low compared to most facilities in Germany.

    On top of that, they got their finances straighten out so they can finance these units over 3 years - so bulk buy, self assemble and look to make your money slowly over 2-3 years, you can do these ultra low cost.

    The main problem for most datacentres is not the hardware, its honestly pennies - its the power and cooling that bite the most.

    This is again OVH's model, they don't look for a fast buck, they'll happily trickle in the income from the servers, their power/cooling cost is lower than most because of the liquid cooling and they choose locations where they can get ultra low cost power.

    Both OVH and Hetzner are not resellers, so you're not paying the guy that rents a rack, who rents from the guy who rents the cage, who rents from the guy renting the suite, etc

    If you look at most of these dedicated server operators there are so many people wanting a cut of the profit, its no wonder that dedicated server prices are so high.

  • click4easyclick4easy Member
    edited December 2013

    @MarkTurner It is informative :)

  • DalCompDalComp Member
    edited December 2013

    Does their €15/month Flexipack actually give anything for the customers? It's like free money for Hetzner right, on top of the add-ons?

  • @DalComp said:
    Does their €15/month Flexipack actually give anything for the customers? It's like free money for Hetzner right, on top of the add-ons?

    Pretty much, OVH does the same.

  • @dalcomp - if you want the extra items, they charge a fee to have access to them. Its just a way to pick up some extra pennies.

  • Yes but most people just get the default config and don't need the extra stuff.

  • agentmishraagentmishra Member, Host Rep

    ovh is i believe equally cheaper

  • Actually, they're not even that cheap. There are providers who charge the same or even lesser for better hardware.

  • @dhamaniasad - for good network, reliability and good quality of service - Hetzner is definitely top of the pile in Germany.

    Its a whole lot better to deal with someone who owns their infrastructure in totality rather than the usual cascade of resellers of resellers.

    Thanked by 1linuxthefish
  • @MarkTurner said:
    dhamaniasad - for good network, reliability and good quality of service - Hetzner is definitely top of the pile in Germany.

    Its a whole lot better to deal with someone who owns their infrastructure in totality rather than the usual cascade of resellers of resellers.

    Wasn't aware that their DC is in Germany.
    That might not always be true, but yeah, mostly is.

  • @dhamaniasad said:
    Actually, they're not even that cheap. There are providers who charge the same or even lesser for better hardware.

    Such as?

  • @dhamaniasad said:
    That might not always be true, but yeah, mostly is.

    I live about 15kms away from their nuremberg location:P

  • drserverdrserver Member, Host Rep

    We had one node there. Service was excellent, great network performance, all great, but their billing department ruined whole story...

  • It's because nobody will pay more than that for the amount of packet loss you will experience with a Hetzner server. - grin -

  • @MarkTurner said:

    Wow, their DC is good. Very good infact.

    @Enverex said:
    Such as?

    There are providers in the US such as QuickPacket who can provide similarly priced servers. But none in Germany that I'm aware of. For that, I stand corrected.

    @trexos said:
    I live about 15kms away from their nuremberg location:P

    You have any servers with them? You could sit there all day with your laptop plugged into a 100Mbps port :P

  • @dhamaniasad said:
    You have any servers with them? You could sit there all day with your laptop plugged into a 100Mbps port :P

    No :( But you can buy 100Mbps internet connections in Germany. In switzerland even 150k

  • @trexos said:

    But that'd probably be a lot costlier than buying 1U colocation, right? 150k?

  • @dhamaniasad said:
    But that'd probably be a lot costlier than buying 1U colocation, right? 150k?

    I dont know the swiss prices but here in little germany we pay about 30€/month for unlimited phone calls and 100k. Not that expensive

  • @trexos said:
    I dont know the swiss prices but here in little germany we pay about 30€/month for unlimited phone calls and 100k. Not that expensive

    What do you mean by 100k or 150k?

  • @dhamaniasad

    Sorry with with k i mean thousands. So:
    100k = 100.000Mbps
    150k = 150.000Mbps

  • @trexos said:
    dhamaniasad

    Sorry with with k i mean thousands. So:
    100k = 100.000Mbps
    150k = 150.000Mbps

    Oh wow, thats very cheap. Here in India, we get around 3Mbps for ~20€.

  • @dhamaniasad said:
    Oh wow, thats very cheap. Here in India, we get around 3Mbps for ~20€.

    Well thats expensive, but games are cheap as hell:P I buy my games on origin/steam in indian stores:P in germany: 60€ in india 20€

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