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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.
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...
George AMD is Geoge Andreas Muller Dong.
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.
@MarkTurner It is informative
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.
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.
Wasn't aware that their DC is in Germany.
That might not always be true, but yeah, mostly is.
Such as?
I live about 15kms away from their nuremberg location:P
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 -
Wow, their DC is good. Very good infact.
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.
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
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
What do you mean by 100k or 150k?
@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€.
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€