I just used Claude to convert my app to a serverless architecture and migrated to Cloudflare and their generous tiers. Not every app fits that model, but it's more than you'd think. Now I only pay when the app is used, not a penny more.
As a long term metal customer, I understood the need to raise prices for energy usage.... but for disk/ram I'm struggling to be sympathetic. The hardware I am using is already procured by them, and until such time there is a hardware failure I cannot support a price rise, because were is their justification for existing hardware?
An ongoing business that intends to remain ongoing has to charge current customers based on the replacement cost of consumable items used to service those customers.
That's why for example gasoline prices react almost immediately after something affects (or even threatens to affect) the price of crude oil, even at gas stations that have just filled their storage tanks and will be selling that already purchases gas for quite a while.
Most of us don't usually thing of computer hardware as a consumable but to a hosting business it effectively is.
Because in a free market, making rational choices about pricing in line with the industry allows you to build capital to further expand, which coincidentally also lets you buy more RAM.
Getting close to losing any point of them existing. They were the cheap one. You take that away and their unique offering vanishes and makes them pretty pointless to even consider as a provider. Really hope they can sort out something for their hardware sourcing as this isn't sustainable.
They are also becoming greedy. I rent their 20GB VRAM instance GEX44, for which they now ask a 500 euro one-time setup fee. Whereas it was something like 60 euros a year ago.
We (company) do the same. Though in our case the setup cost was 80 Euros (I think), less than a year ago. As the GPU proved not really suitable for any serious server workloads (it's a workstation class card), we'll soon be ditching that machine anyways (now for sure). Maybe our other inventory at Hetzner too. Not even because of the price increases themselves, but rather because the way in which they've communicated those. Personally, I've been a loyal customer and avid advocate for Hetzner, for well over a decade. They sure knew how to nuke that in record time. They can spin their story any way they like, but I'd say their board better consider sending most of their management packing, without bonuses or severance pay.
Interesting over the price increase rollover now the setup fee is around 110 euros.
The machine itself is basically useless for any type of realtime inference, no matter what the marketing page states, but I still use it for prototyping LLM integrations and running comparisons across MoE models.
If only the alternatives to framework desktop wouldn't be so poorly built, I might swap it out for a local machine which has more ram but comparable performance for stuff like gpt-oss-20b (around 70tok/s)
> I rent their 20GB VRAM instance GEX44, for which they now ask a 500 euro one-time setup fee
Along with the increase in monthly prices they've dropped setup fees back to more approachable levels, though not as low as they were a year ago. For the GEX44 it was €79 a year ago, now €114. Monthly price was €184 a year ago, now €234.
AI seems to be ruining every single major thing that drove economic growth for the past 4 decades. PCs, the Web, software in general, high-capacity servers, Raspberry Pis and so on. The next thing to be affected will probably be smartphones. All of these things are foundations of profitable businesses right now and we are destroying them on the mere promise to get to some idiotic utopia in the future.
Hardware prices, especially RAM, have skyrocketed. Priced out new baremetal servers recently and prices were 3-6x what we paid 4 years ago for the newer equivalents.
There are actually two separate pricing increases. One was introduced about 1-2 months ago. The one from today was announced at the end of May, without actually revealing new pricing then. The new levels were made public today or yesterday, I believe. And they are much bigger than before, some hikes are well above 200%.
29 comments:
I just used Claude to convert my app to a serverless architecture and migrated to Cloudflare and their generous tiers. Not every app fits that model, but it's more than you'd think. Now I only pay when the app is used, not a penny more.
As a long term metal customer, I understood the need to raise prices for energy usage.... but for disk/ram I'm struggling to be sympathetic. The hardware I am using is already procured by them, and until such time there is a hardware failure I cannot support a price rise, because were is their justification for existing hardware?
An ongoing business that intends to remain ongoing has to charge current customers based on the replacement cost of consumable items used to service those customers.
That's why for example gasoline prices react almost immediately after something affects (or even threatens to affect) the price of crude oil, even at gas stations that have just filled their storage tanks and will be selling that already purchases gas for quite a while.
Most of us don't usually thing of computer hardware as a consumable but to a hosting business it effectively is.
Because in a free market, making rational choices about pricing in line with the industry allows you to build capital to further expand, which coincidentally also lets you buy more RAM.
They are not raising prices for existing contracts, only new ones.
They will need to buy new hardware too I guess…
Getting close to losing any point of them existing. They were the cheap one. You take that away and their unique offering vanishes and makes them pretty pointless to even consider as a provider. Really hope they can sort out something for their hardware sourcing as this isn't sustainable.
The above assumes that other providers will not do their own adjustments.
The last price increase was 5-10%. This one is a 150% increase. Goodbye Hetzner. The old version of you will be missed.
Where are you moving to?
Hetzner dramatically increased prices for new and rescaled instances starting 15th of June, 2026; 8 AM CEST.
For orders placed before 15 June 2026, but delivered after 15 June 2026, the previous prices will apply.
Buried multiple links and scrolling deep, but looks like they're tripling prices for cloud servers in the US.
What's the next best option now?
They are also becoming greedy. I rent their 20GB VRAM instance GEX44, for which they now ask a 500 euro one-time setup fee. Whereas it was something like 60 euros a year ago.
We (company) do the same. Though in our case the setup cost was 80 Euros (I think), less than a year ago. As the GPU proved not really suitable for any serious server workloads (it's a workstation class card), we'll soon be ditching that machine anyways (now for sure). Maybe our other inventory at Hetzner too. Not even because of the price increases themselves, but rather because the way in which they've communicated those. Personally, I've been a loyal customer and avid advocate for Hetzner, for well over a decade. They sure knew how to nuke that in record time. They can spin their story any way they like, but I'd say their board better consider sending most of their management packing, without bonuses or severance pay.
Interesting over the price increase rollover now the setup fee is around 110 euros.
The machine itself is basically useless for any type of realtime inference, no matter what the marketing page states, but I still use it for prototyping LLM integrations and running comparisons across MoE models.
If only the alternatives to framework desktop wouldn't be so poorly built, I might swap it out for a local machine which has more ram but comparable performance for stuff like gpt-oss-20b (around 70tok/s)
> I rent their 20GB VRAM instance GEX44, for which they now ask a 500 euro one-time setup fee
Along with the increase in monthly prices they've dropped setup fees back to more approachable levels, though not as low as they were a year ago. For the GEX44 it was €79 a year ago, now €114. Monthly price was €184 a year ago, now €234.
AI seems to be ruining every single major thing that drove economic growth for the past 4 decades. PCs, the Web, software in general, high-capacity servers, Raspberry Pis and so on. The next thing to be affected will probably be smartphones. All of these things are foundations of profitable businesses right now and we are destroying them on the mere promise to get to some idiotic utopia in the future.
Anyone know why? Some of the tiers more than doubled in price, that's pretty insane.
Hardware prices, especially RAM, have skyrocketed. Priced out new baremetal servers recently and prices were 3-6x what we paid 4 years ago for the newer equivalents.
RAM prices, surely?
Was looking into a ram upgrade and the kit is 4x what it was even a year ago. I'm with you on this one
Previously discussed 18 days ago https://news.ycombinator.com/item?id=48306066
I believe the price changes themselves were not publicly announced by Hetzner back then. Just their intent to increase them once again.
See: https://news.ycombinator.com/item?id=48307959
For example, their 'Regular Performance' cloud server tier has seen a 173% price increase.
It's been a struggle to allocate cost-optimized VPS at them for months now (in some regions), they were very often out-of-stock.
Was this announced beforehand? How do you double prices for customers so abruptly with no transition period?
They announced it a few months ago: https://news.ycombinator.com/item?id=47120145
There are actually two separate pricing increases. One was introduced about 1-2 months ago. The one from today was announced at the end of May, without actually revealing new pricing then. The new levels were made public today or yesterday, I believe. And they are much bigger than before, some hikes are well above 200%.
I wonder how this will affect their demand considering most people use them because they’re low cost
Wow this is a brutal price increase for a lot of plans, at least it appears old user instance prices are grandfathered unless you rescale them.