It’s also trivial to use now. With AI, there’s no meaningful additional work in using a VM.
replyRight, instead of using a managed serverless platform where you pay a premium for proprietary cloud provided services to take away the overhead of managing and patching servers for you and let you just deploy containers, you can… pay a premium for proprietary cloud-hosted AI engines to take away the overhead of managing and patching servers for you and let you just deploy containers.
replyI don't think any VPS provider has come close to raising their prices this much. There's absolutely not enough people flocking to Hetzner to justify this.
replyBut VPS providers share the same hardware and overprovision. They don’t need to add new hardware every time a new customer signs up.
replyIf you buy a dedicated server at Hetzner, you actually need immediate hardware.
Many VPS providers also just resell Hetzner, OVH or other dedicated servers so they won’t increase the price until their own provider does.
> But VPS providers share the same hardware and overprovision.
replyHetzner has a "cloud" offering. The price increases aren't small either.
That's all true, but this seems disproportionate even to the hardware market. They already raised their prices recently as hardware got more expensive, and now they are quadrupled. Maybe I am just misreading the hardware market right now.
replyIf you see photos/videos of Hetzner datacenters, their servers are essentially plain, low-end motherboards (1G network, few slots) sitting on shelves (don't mean that as derogatory, it's an efficient design). What it does mean is that their per-server costs are absolutely dominated by the very components that are exploding in cost right now: RAM, SSDs and (to a lesser extent) CPUs.
replyOVH just raised their VPS prices by about 30%.
replyThey shifted right (VPS-1 2026 is now VPS-2 2027) and increased prices.
Crazy stuff
OVH still seems cheaper here for smallest VPS (what's needed to host a personal website), especially when you consider that you have to pay your IPv4 1.7 € with Hetzner.
replyFor the exact same specs (CX23 vs VPS-1 2027), price is 6 vs 4.5 € and you can get a 15% discount on OVH if you order a full year.