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The vps performance is not comparable to a dedicated server. Same cpu’s still means twice as slow. Also hetzner alllows for much larger servers in terms of memory at still a fraction of do pricing
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Why do you think it's a better product? Slicker interface?
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Hosted Postgres, hosted K8s, block storage that can IOPS.
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The reason I use a VPS is to not use hosted anything, personally. So I guess whether that makes it a better product or not is highly personal.

Speaking for myself, I used $5 DO droplets for quite a while when learning but as soon as I switched to real projects and realized how quickly the price ramped up, I moved to Hetzner and the simplicity of their interface was a breath of fresh air. I saved a ton of time after switching. So to me, Hetzner has the superior product.

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Probably more versatile. Hetzner is just VPSes. They do not offer any PaaS product like managed DBs, managed Redis, wahtever.
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