Hetzner's Price Increases Explained (And what it means for your business)
Date: 2024-11-29 | create | build | cloud | hetzner | tech-news |
Hetzner announced new price increases this week for US server configurations - increasing the cost of select configurations by 5-25% and reducing included bandwidth allocation by 95%. These new prices have upset many customers as Hetzner has historically been one of the cheapest cloud hosting options.
In this post we'll explore what the price changes are, how that compares to the rest of the industry, and what that may mean for your cloud architecture.
Details of Hetzner's Pricing Changes
On 2024.11.28 Hetzner sent an email detailing pricing changes for US server configurations. These changes go into affect on 2024.12.01 for new instances and will be applied to existing instances on 2025.02.01.
The pricing changes themselves involve increased prices for specific US server configurations and lowered included bandwidth. Note that the price for bandwidth overages remains the same at about $1.11 per TB.
Affected US server configurations:
- CPX line - AMD Shared vCPU cloud instances
- CCX line - AMD Dedicated vCPU cloud instances
CPX configuration prices increase by 10-25%
CCX configuration prices increase by 5-10%
Check out CloudCompare for updated cloud pricing comparisons.
How do Hetzner's prices compare to other clouds?
While these price changes are scary with 5-25% increases, when put in perspective they remain very competitive with offerings from other providers. Hetzner has historically been a relatively cheap cloud host and remains so after these price increases.
In terms of compute - Hetzner remains one of the cheaper options for provisioning shared vCPU instances, coming in 5x cheaper than comparable AWS offerings.
See full compute configuration comparisons.
In terms of bandwidth - Hetzner still excels despite dropping free allocations by up to 95%. Hetzner's included 1TB is relatively standard and ~$1 per TB overage is 10x cheaper than Digital Ocean, 85x cheaper than Google Cloud, 87x cheaper than Azure, and 90x cheaper than AWS.
What does Hetzner's pricing changes mean for your business?
For most businesses / architectures these pricing changes won't mean much. Hetzner still has very reasonable prices for compute and bandwidth compared to their competitors so in most cases the math remains the same.
Where it may change things is for customers that were heavily using (and likely exploiting) the very high bandwidth allocations. Those customers will now need to start paying a bit more for their bandwidth usage and may consider moving to clouds with "unlimited" bandwidth usage.
Just note that if you are one of these customers - it's likely you will eventually be asked to pay from that new provider as well. In which case you will need to compare prices and Hetzner still provides very cheap bandwidth. So even for these customers Hetzner may still be a good option long-term.
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Hetzner's pricing changes upset a lot of people and it always sucks when prices increase but Hetzner remains a very competitive cloud hosting provider so for most this won't change much.
I'm personally hosting several apps on Hetzner boxes and have had a good experience so far so will stick with them until I have reason to go elsewhere.
For up-to-date comparisons of cloud offerings and prices, check out CloudCompare.
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