They don't run on AWS. Not sure what sort of rumors are running :(
> data centers from?
The major players e.g. Equinix, Coresite, etc. Varies per location. Even AWS don't build most of their data centers.
I feel like there might be more to it, especially considering the situation with electricity prices in some places in EU recently.
I used (and still use) a Lithuanian platform called Time4VPS which was cheaper than Hetzner previously, yet had to increase their prices somewhat for that reason. Now only some of their plans are competitive with Hetzner, while Hetzner also provides some managed services as well.
Hetzner docs also went into some of the details regarding the pricing: https://docs.hetzner.com/robot/general/pricing/hetzner-prici...
And yet, I can't help but to wonder why they don't give in to the desire to maximize profit margins, like happened to say Scaleway (good platform, but as expensive as DigitalOcean).
Maybe that's not actually the dominant cost, or they've optimized everything else so well they can just eat the electric bill.
like the longtime workhorse was a high performance skylake desktop cpu w/o ecc ram
We used to use nianet to house our hardware in Denmark. Basically these companies does hardware renting and they also do hardware renting with more steps which is where you rent rack space but own the hardware. They provide the place for the hardware and they also have multiple locations so that you have both backup and redundancy, and while it doesn’t scale globally in 20 years I’ve literally never worked on anything that needed to beyond having some buffer caches for clients logging in on their vacations or something like that.
What Hetzner seems to be doing with the DO styled hosting, and this is just a guess, is that they are one or the many EU companies preparing for the big EU exodus from the non-EU cloud. Which is frankly a solid bet these days where both AWS and Azure are increasing prices and are becoming more and more unusable because of EU legislation. Part of this is privacy which Microsoft and Amazon are great with in terms of compliance, but part of it is also national security. I work in an investment bank that builds solar plants, since finance and energy are both critical sectors we risk being told that half of the finance/energy companies in the world can’t use Microsoft because the EU seems it as a single point of failure if our entire energy sector relies on Azure. Which is sort of reasonable right? But what this means for us is that we can’t vendor lock-in, not really, because we need to have up-to-date exit strategies for how we plan on being fully operation a month after leaving Azure. Which is easy when you just containerise everything and run it in VMs or similar, and really annoying if you go full in on things like AKS. Which doesn’t help our Azure costs.
Anyway, right now we are planning on leaving Azure because of cost. Not today, not next week but sometime in the next 5-10 years and a lot of these EU cloud alternatives that actually operate the hardware instead of renting it are likely going to be a very realistic alternative. And that is the private sector, I spend time in the EU public sector which is a massive amount of money and I’m guessing it’ll leave both AWS and Azure by 2050. Some of these EU cloud initiatives is going to explode when that happens, and right now, hetzner is one of the best bets.
To get back to your question, DO rents server space. I have no idea where they’d rent it in Germany but they could potentially be renting it from Hetzner.
To add on to the comments about Hetzner building their own custom hardware, they also custom built their own software stack. They rejected the hype that was OpenStack and worked diligently on their own hypervisor platform (that they are incredibly secretive about) and that appears to be paying off in spades for them. Most sovereign cloud plays end up being suffocated by the complexity, and incoherence, of the OpenStack ecosystem. It just becomes impossible to ship.
I know Hetzner is working like crazy on a managed Kubernetes offering atm, I think when that lands it could be very interesting.
For a fascinatingly different take on how to build a datacenter: https://www.youtube.com/watch?v=5eo8nz_niiM
I am asking for this since a while and was told there is no way Hetzner would offer such a service. Certain Posts on Social Media have also never been answered with any kind of indication that they are actually working on it.
Please provide some Details on this.
So huge grain of salt, you are totally right. It could be internal platform work only.
You do the same on the other side of the table. Companies like Hetzner knows that EU cloud sollutions are likely to see growth, so it's only natural that they invest in the tech to put themselves in a prime position to jump on the opportunity. Selling a good product while you do so is the way I would do it personally, but you also have EU cloud initiatives backed by VC money going straight for the endgame.
1. Strict rules and strict customer verification. Crypto mining that wastes SSDs is not allowed. Portscans, mass emails, etc. are not allowed. They also don't offer GPUs to the general public because it has been abused in the past. You usually need to send in ID documents just to open an account. My guess is this allows them to avoid most bad actors and, thereby, waste less money on fraud.
2. Extremely long-term investments. They typically build their own hardware and then use it over 10 years. They have their own flea market where you can rent older server models for a steep discount. That means they will have a long time where the hardware is fully paid off and still generating revenue.
3. Great service. With a mid-sized company, I can call their technicians in the middle of the night. The fact that we could call them in case of a crisis has generated A LOT of good will. But I would be truly surprised if they didn't make a profit off those phone calls, as they charge roughly 4x the salary cost.
4. High-margin managed services. In addition to just the cheap servers, they also offer a managed service where they will do OS and security upgrades for you. It's roughly 2x the price of the server and it appears to be almost fully automated. I know some freelance web designers who will insist on using Hetzner Managed for deployment for their clients, because it is just so convenient. You effectively pass off all recurring maintenance for €300 a month and your client is happy to have an emergency phone number (see #3) in case the box goes down.