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Hardware isn't the only expense. Everything has gone up in prices.
Electricity prices + IPv4 prices happened. Unless you are getting free power from somewhere, I can't see how 10$ pays for electricity, yet alone connectivity, maintenance, support, IPv4 and so on.
To put this into perspective.
Last year my electricity price was €0.03/kWh
This year I was forced to a new contract at €0.14/kWh
Out of curiosity - where's that? 0.14EUR is still very cheap for the EU these days. I am seeing more like 0.3EUR in most locations.
Disregarding IPv4, it's mostly thanks to covid and partially because hyperscalers changed their policies. Covid caused worldwide inflation and increases to electricity bills. Also, fabs were closing down just before covid, then covid suddenly caused a sudden surge in demand and suddenly there's a worldwide semiconductor shortage. Because of that, hardware costs started going up (on top of inflation).
As for the hyperscalers, previously their hardware reached EOL in 3 years. A few years back, it became 5 years. Maybe something changed now? In addition, at some point of time they just stopped throwing their hardware and instead made deals with intel to replace just their cpu chips on their existing hardware. A lot of the lowend market were relying on the discarded old hardware from hyperscalers which were a lot of value for money (sometimes nearly free or literally free). Nowadays, even these old, nearly (or already) EOL hardware are worth a decent buck because of these policy changes.
0,14€ ? thats very cheap. like 1/3 from Germany.
Where are you from?
We host hundreds of servers and a power increase of like 10cents (old 0,19 new 0,29€/kwh) caused extra costs of few thousand €.
Offering 20USD dedis is suicide in my opinion.
RackSpace, Power, IPv4 cost, HR, taxes etc etc etc. And you as the business owner need to eat. Doesnt fit.
Plus most customers are willing to pay much much more. I dont see a reason or sense to provide dedicated inside a range under 50-60€ per month.
So if one offers this kind of servers, the goal should be to upsell you a higher priced product to convert you into a customer that actually brings some cash..
If you ask me, such offers might vanish in next years.
Estonia. But that was in January and they shot themselves in the foot with this contract. I got an 3 year one right now and the new ones are anywhere from 0.25-0.40.
To sum it up, (hyper) inflation happened.
I guess you are right. Very possibly low end dedis are used for converting new customers.
Correct me if I'm wrong but low-end dedis are usually older hardware to begin with and those usually guzzle up power. Example. Opteron or v1-2 Xeons
What are hyperscalers? Like AWS, GCD, Azure, etc?
Yes, they are the source of the many e5 deals you see on LET. It was nearly free hardware for everyone. (And more importantly, nearly free ram) I am sure they still discard their hardware but not only do they discard less often, their liquidation process got more serious. You still see people liquidating stuff like the custom-made aws cpus or large batches of SAS disks etc.