New on LowEndTalk? Please Register and read our Community Rules.
All new Registrations are manually reviewed and approved, so a short delay after registration may occur before your account becomes active.
All new Registrations are manually reviewed and approved, so a short delay after registration may occur before your account becomes active.
How can Hetzner afford these prices?
I have an AX41-NVME (custom config with added HDD storage) and that dedicated server is already sold at an awesome price for the specs.
But the AX101 is truly incredible:
Considering the average price of similar dedicated servers with other providers, how on earth can they offer this monster for 122e? There is not even a setup fee at the moment.
I don't understand how they can trash the competition on prices like this.
Comments
Low margins, big volumes, fully automated, this is how 😊
They must sell a lot of these, I don't think the hardware for this server is very cheap?
They'll milk the server for years. They still have people buying Sandy Bridge servers from auction...
This. And they gamble on the sleeper-users as well. The people that just keep paying for the server and barely use it or forget they have it. OVH does the same. When you offer (close to) no support and automate everything you can keep the costs low :-)
Their own explanation is here: https://docs.hetzner.com/robot/general/pricing/hetzner-pricing
It's pretty much just, optimising purchase decisions, low margins and high automation.
Most of the servers are undervolted or locked at specific clocks, so they use less electricity.
How would you know that? When I do benchmarks I get similar results to others I find online for the same CPU (Ryzen 5 3600 in my case)
My AX101s will not peak over 3.4GHz at all. The Ryzen 9 5950x is listed with a turbo speed of 4.9GHz.
Long ROI also. Looking at the buy price of this config i think they maybe see some cash/Profit after arround 2 years or so
If you check this config buy price and calculate running costs etc.
Thats the result.
After all, looking the suppliers i know, its a 2-2,5k € server.
Maybe they also save some costs as they are not using proper chassis i saw and heard. The mainboards are like OVH on some sort of "metal plate"
But yea, still after 5/6 years, this servers will sell easily
- Put them in server auction if you cant milk them off anymore.
They gamble on growth. I suspect some day the providers will crash with this strategy of selling fast and high volumes at low margins. Just see the power price in EU raising
Try updating the kernel to the latest upstream version. Ryzen 5950x needs kernel >5.10 for optimum performance.
I have a few AX101 and all of them clock above 3400 even under load
cat /proc/cpuinfo |grep MHz
cpu MHz : 4266.386
cpu MHz : 3400.000
cpu MHz : 3400.000
cpu MHz : 3400.000
cpu MHz : 3400.000
cpu MHz : 3400.000
cpu MHz : 3400.000
cpu MHz : 3400.000
cpu MHz : 3400.000
cpu MHz : 3400.000
cpu MHz : 3400.000
cpu MHz : 4301.195
cpu MHz : 3400.000
cpu MHz : 3400.000
cpu MHz : 4416.634
cpu MHz : 4146.752
cpu MHz : 3400.000
cpu MHz : 4417.121
cpu MHz : 4123.536
cpu MHz : 3400.000
cpu MHz : 3400.000
cpu MHz : 3400.000
cpu MHz : 4416.675
cpu MHz : 3656.758
cpu MHz : 3400.000
cpu MHz : 3400.000
cpu MHz : 3400.000
cpu MHz : 3400.000
cpu MHz : 3400.000
cpu MHz : 4244.758
cpu MHz : 3400.000
cpu MHz : 3400.000
I guess it depends on what you do?
They own their datacenters so they can optimize for their particular hardware (density and capability). They can do their own case enclosures (normally impossible to insure). OVH reportedly does this.
Automation and longer ROI's.
Check this out (hetzner dc).. And you will know why
Thats cool.
Awesome video!
They know what they are doing + cooler overall climate there. Such prices are not possible in warmer countries as alone the price of air conditioning will eat away lots of margins.
germans are good in tech .
But they're not trashing the competition. You have either resellers of hetzner that can sell the servers at a higher price or other providers that can sell the server with lower spec at a higher price. That means Hetzner is not retaining customers and they're forced to lower their prices. It all comes down to supply and demand.
Don't know where I read it but Hetzner highly depends on government funding in exchange for jobs and infrastructure.
They list this as a benefit on their data center park website: http://www.datacenterpark.com/index_en.html
Thread about Hetzner Data Center Tour ( shared on 13 October 2021 ):
https://lowendtalk.com/discussion/174453/visiting-hetzner-in-falkenstein-germany
You forgot "massive price hikes" every so often to make up for the minimal margins.
Francisco
True, but even with that they are still 30-70% cheaper than competitors