ENGINEERING ★ 95 upvotes 2022

Hetzner announcement: Price changes for servers ordered via the Server Auction

The Founder's Submission

Direct narrative and submission text authored by @dutchbrit on Hacker News:

"Unfortunately, energy prices in Germany have been increasing dramatically, and electricity plays a big role in the operating costs for servers. We have always calculated the prices for the Server Auction to be as low as possible. The current prices for many Server Auction servers do not cover the increasing operating costs."

In my case, server price is going from €26 to €35, a 35% increase(!!!). Still cheap for what I'm getting but quite a price hike, new pricing starts in March in my case.

Received via email, no article on their website yet.

Retrospective Overview & Key Insights

Distilled analysis of the business dynamics, operational challenges, and strategic takeaways:

In this technical retrospective (2022), @dutchbrit shares practical architectural lessons learned from running, scaling, or migrating production software under lean constraints.

Core Principles for Independent Builders:
1
Defaulting to simpler architectures (such as monolithic frameworks, SQLite, or managed VPS) prevents early engineering bankruptcy.
2
Evaluating true compute and egress costs reveals that high cloud bills can often be slashed by 80%+ through judicious re-platforming.
3
Code you write at 2 AM as a solo engineer must be easy to debug six months later without complex microservice dependencies.
Community Debate Themes:

HN engineers debated the tradeoffs between cloud convenience and raw server economics, database indexing strategies, and resisting premature architectural complexity.

Community Discussions & Critical Reviews

High-signal perspectives, counter-arguments, and peer founder insights debated on Hacker News (139 total discussions):

VI @vigsterkr Peer Contributor

I've started a thread on twitter about this: https://twitter.com/vikgl/status/1484500546358845442

and somebody from Hetzner decided to answer some of my questions. One of which is mind-blowing: apparently they are going to re-adjust the prices once the electricity prices go down: https://twitter.com/hetzner_online/status/1484522103521124354

I wonder why this wasn't at all mentioned in their initial email... note i don't remember signing a contract for hosting where the price is dynamically calculated on commodity prices...

JV @jve Peer Contributor

Latvia, not far from Germany.. you may want to read this: https://www-delfi-lv.translate.goog/bizness/biznesa_vide/2021-gads-latvija-iezimejies-ar-elektroenergijas-cenu-kapuma-rekordiem.d?id=53976060&_x_tr_sl=lv&_x_tr_tl=en&_x_tr_hl=en-US&_x_tr_pto=wapp

Tldr: 2021 avg electricity price 88,78 EUR/MWh, 2,6x higher than 2020. December 2021 had highest avg price: 206,40 EUR/MWh (January had ~50+ EUR/MWh), with peak price for 1 hour: 1000,07 EUR/MWh

PM @pmlnr Peer Contributor

Hetzner is a wonderful provider, and as transparent as possible, with exceptional prices/value.

I've recently decided to stop renting a machine - I've had 3 server auction machines across 10 years - with 2x3TB enterprise (internal ecc protected) HDD, Xeon, 16GB ECC RAM, etc. The hw is aging, the disks were reasonably new, and it all just works, for practically pennies compared to cloud providers (no IO, no internal bw cost, fully dedicated CPUs, and so on). My reason to leave it was lack of need; I decided to move my backups and archives offline and my services to a tiny home "server".

XI @xibalba Peer Contributor

In a few minutes of Googling, I can't seem to find a decent time series of average German electricity prices (€ct/kWh) by month. What has the increase been? [1] reports 54% (!!!) increase since 2020. Why?

[1] https://www.reuters.com/business/energy/euro-zone-consumers-shock-power-bills-soar-2022-01-18/

WA @warrenm Peer Contributor
In my case, server price is going from €26 to €35, a 35% increase(!!!). Still cheap for what I'm getting but quite a price hike, new pricing starts in March in my case.

I'm going to convert to USD for a minute (since I'm in the US) ... that's a price jump from ~$29.50 to ~$40. Or less than two trips through a drive through of a [cheap] value meal at a fast food place (maybe one trip through some places).

HISTORICAL ERA Pandemic Bubble (2020–2022)
COMMUNITY SCORE ★ 95 points
TOTAL DISCUSSIONS 139 comments
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