Yes but paying massively inflated prices for compute are not anymore. Even for consumer gear I am being quoted prices that are more than 2x what they were only a year ago (and availability is hard).
replyBut its impact on new hardware costs and replacement costs is not.
replyA company like Hetzner probably replaces hardware on a 5 year cycle. Maybe shorter. Maybe they could try to stretch that out but they can't avoid the cost of new hardware for very long.
I think it is worse for Hetzner. The secret is out. Their prices have attracted a lot of demand, and they need to buy equipment to satisfy that demand.
replyThe last Hetzner box I leased I had to poll for availability as if I was Ebay auction sniping. It took me 2 days to acquire it.
Absolutely. Replacement is one thing, but there is also the need for new hardware to meet growing demand.
replyAnd yet the hardware cost increases caused by AI are not.
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