Hetzner Cloud Price Increase - CX11 / CPX11 & Floating IPs
ialexpw
OGServices Provider
Just had the below;
TLDR
CX11 (monthly from 1 September 2021)
2.988€ > 4.188€
CPX11 (monthly from 1 September 2021)
4.188€ > 4.788€
Floating IPs (monthly from 1 August 2021)
1.2€ > 3.6€
Important customer information: Price adjustment for new CX11 und CPX11 and Floating IPv4 addresses
Dear Client
from the moment we launched Hetzner Cloud in 2018 we have continuously been working on expanding our platform and offering you an excellent price/performance ratio in cloud computing. Unfortunately, the prices to acquire IPv4 addresses have since increased dramatically and we have no choice but to respond. For a long time now, the pool of available IPv4 addresses has been almost empty at RIPE, the European IP address management agency. That's why RIPE stopped assigning IPv4 nets. Because of this situation, there is now a fast-growing market in IPv4 address trading with many active brokers, such as on https://ipv4.global/reports/. Supply and demand determine the price at IPv4 brokers, so the prices have skyrocketed.We have tried hard to avoid passing on these higher prices to our customers, and have accepted the economic loss until now. However, the prices have increased so dramatically that we can no longer do this. We unfortunately must increase our prices.
Starting on 1 August 2021, the price for newly created Floating IPs (IPv4) will be increased as stated below.
Starting on 1 September 2021, the price for newly created Cloud Servers (CX11 and CPX11) will be increased as stated below.
Product Price per month / hour up until now Price per month / hour, effective 1 Sept 2021
Cloud Servers:
CX11 2.988€ / 0.0048€ 4.188€ / 0.0066€
CPX11 4.188€ / 0.0072€ 4.788€ / 0.0078€
Existing Cloud Servers are not affected by this price adjustment. Please note that these prices also apply to rescaling, effective September 1, 2021.
Product Price per month up until now Price per month, effective 1 Aug 2021
Floating IP:
IPv4 1.2€ 3.6€
Existing Floating IPs are not affected by this price adjustment.
All prices incl. 20% VAT.
Demand for IPv4 addresses will likely remain very high. And we will need to continue to purchase nets. We assume that the prices for IPv4 addresses will continue to rise, and that we will also need to increase our prices again in the future. Prices for IPv4 will likely remain high until after IPv6 has become much more popular.We are confident that this is still a good price/performance ratio and hope for your understanding.
If you have any questions, we are happy to help. To open a support request, please go to the menu item Settings on your Cloud Console. We hope that you continue to place your trust in us as we are constantly working to expand our services and you can look forward to several new features that are already on our roadmap.
Thoughts? Some quite big price adjustments there, although they haven't changed since introduction.
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Comments
Hetzner has always been a great value for the money ( LES runs on Hetzner cloud
) and it's understandable that the IP costs are affecting their bottom line, so I think the price increase is justified.
I'm also glad they didn't pull and online .net and force a price increase on existing services.
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Was also thankful for this, I have a few servers over there so would have increased a fair bit. Luckily most are CPX11's which are only a small increase.
Syuh - SFTP Storage Pods from 50GB to TBs. UK, US and DE locations.
to be fair... they actually do so for (existing) additional IPs/subnets on dedis and other stuff, see the other mail they send out today.
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Looks like people with existing services just have more time to come to terms with it or move to another provider.
Be glad that they are giving you a grace period to sort things out.
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MetalVPS
@Hetzner_OL how about offering cloud instances with no ipv4 (i.e. v6 only)? I'd use that, for backend services and so on. Scaleway even has (or had) them with no internet, i.e. internal network only. I probably wouldn't use that myself but I can see some applications for it. Right now I have one cloud instance active for a personal project and I need internet access to it, but v6-only would be fine for that.
Added: even for a public site like LES, an ipv6-only cloud instance will often be fine, since the public-facing address in LES's case is a Cloudflare ipv4.
Yep
We're going to be moving away from Hetzner now... The small increase in monthly price is justified, but the setup fee is absolutely insane.
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I mean, it had to happen at some point... Only using the cloud instances at the moment, and some of them are bigger ones which supposedly are not affected.
However, I second what @willie sad: waiting for IPv6 (or maybe even "internal network only") instances for way to long now. I really hope this changes give them some incentive to finally offer something like that!
@Advin said
It pushes customers toward Hetzner's cloud services which, to Hetzner, might be way more profitable per server than dedicated root server rental.
It partially closes the tiny gap which might have existed and which might have made it barely profitable to rent a dedi and sell VPSes on it. Maybe, in today's market one has to own his equipment.
I showed this to the MetalVPS math team. The first comment I received was, "This puts a ceiling on your business' involvement with Hetzner." Well . . . maybe, but I doubt it. My Hetzner server still would be pretty good even for double the price. Shhhh! 🙊
MetalVPS
What's the difference between a regular IP and a failover one, that makes the failover ones much more expensive? Is it not just some internal routing inside Hetzner? Will the cost of dedicated and auction servers go up in sync with these IP setup fees? I really wouldn't mind giving up the ipv4 from my dedi (keeping the v6) if it got me a few euros of monthly discount.
Failover IPs are what we call Floating IPs like with OVH
you can move them around easily
the serverboerse most likely will have more hardware and maybe a price drop
the root dedicated servers from the new series are not affected by this change the primary IP is included the same thing with the serverboerse dedis but any additional IP will have it's setup fee check Hetzner IPv4 Cost Increase (/29 now with a 152 euro setup fee!) (AUGUST 2ND DEADLINE)
This was only a matter of time imho. Let's see where this is going
@Wolveix it's really good to see you here, mate. I somehow only remembered you being on HB so kinda happy to have you over here (more frequently)
HB was and still is the nice pub with the vip backseat but I don't visit there too frequently these days.
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I don't want to derail the thread, but yeah HB/HT is more of a pub feel where as this feels like more of a commercial forum (if that makes sense). Like LET, but without the toxicity. I lurk here more than anything though hah.
Onto the topic at hand, yeah IPv4 prices are ridiculous right now, so it's perfectly understandable in my eyes as to why Hetzner decided to bump their prices. It's frustrating however that they still don't offer IPv6-only servers, as I have no need for an IPv4 IP on many of my servers, or even a public IP at all on a few of them. I don't understand why they increased their setup prices as much as they have though.
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Hey guys, sorry that I have been AWOL for this until now. I talked to some of the company leaders today to get more clarity on this change. Some of the questions that you've already asked here are covered here, although not in detail. We tried to set up the price changes in such a way as to affect existing customers as minimally as possible. We are aware that it still feels like we are ripping off a big band-aid. And for that we are sorry. Our intention, of course, is not to drive away customers, but to try to deal with the situation in the least-painful method as possible; at the same time we want to be prepared for price increases in the coming months. --Katie
We're Katie and Lea and we'll do our best to answer questions you have about Hetzner Online. We and not our employer are responsible for any horrible puns and dated cultural references.
Thanks, Katie. The FAQ is written from a perspective of realism, which is always a good thing. Reading between the lines, though, it seems like the cloud product was designed to be ipv4-dependent and that fixing this will be difficult. I have to think that was an avoidable error since ipv4 depletion has been predicted for literally decades, and the main reason the v4 to v6 transition isn't long since complete is that v6 itself is so badly designed.
Here's a prescient DJB rant written in 2003: http://cr.yp.to/djbdns/ipv6mess.html
Thanks for the feedback on the FAQs. It's nice to get those snippets of positive feedback at times like these.
I am sure back when Hetzner Cloud was still in the planning stage, the team probably had a big discussion about IPv4 vs IPv6 and which direction they were going to go. As with many things, people tend to have 20/20 vision looking at the past. I can't say how or why they made the choice that they did. And I can't say that it was the right or wrong decision. I know lots of people from Hetzner are reading the feedback surrounding this topic and taking what they read seriously. --Katie
We're Katie and Lea and we'll do our best to answer questions you have about Hetzner Online. We and not our employer are responsible for any horrible puns and dated cultural references.
If hetzner people are reading this : Please fix ur ddos protection.
Thank you for your detailled report about the issues that you see with Hetzner's DDoS protection. This will vastly help them to locate and fix the error in question and will make your experience with them even better than the one you have with the quality people over at OVH. I wished we would see more quality content like yours over here. Again - thank you very much for the valuable input and have a nice weekend!
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amazing attention to detail, and absolutely fantastic experience reading it this morning. would definitely read again. highly recommended +++
you can move them around easily
the serverboerse most likely will have more hardware and maybe a price drop
I'm wondering why the failover ip's will be more expensive than the regular ones. Is there some technical reason for that, or is it because of how they are used? I guess it would be tempting for people to hoard them, since they can be moved between servers, so a disincentive for that is needed. Then again, hopefully nobody is snapping them up right now.
I have a CX11 active right now and have resized it a few times (basically upsize it if I have something compute intensive to do, then downsize it afterwards). If I do that again after the CX11 price increase goes into effect, then does the downsize result in the new CX11 price?
Katie, IIRC when the cloud servers were introduced, there was no VLAN product. But now that there is, completely invisible servers (unreachable except through a VLAN, not even visible to the rest of the Hetzner network) become a very useful thing. I'm sure your team realizes this of course, so maybe we'll see something.
that's actually a very good question ;-)
+1
Probably Yes..
Also, if there is price increase per IP then why those exorbitant setup price, either have setup price or price increase per IP.
Looks like Hetzner just purchased an huge IP block, now they are in process to recover its cost.
I think it's rather simple and made that calculation elsewhere. if you assume a price of $50 bucks per IP for buying (now or soon) and consider that they won't be used immediately, will have timnes where they are sitting duck in between rentals or are simply part of 'overhead' that's needed in general network setup, you are probably good if you think about 50% utilization and therefore you need to invest rather $100 per usable/rentable IP. with 19€ setup + 2€ per month it will then still take about 3 years at least to recover those costs. and who knows where the costs for new IPs will be in three years?
also keep in mind that at some point in the not to distant future, IPv4 instead might become obsolete, if IPv6 takes over. then suddenly these assets won't be of much value anymore and anything invested will probably die rather quickly. if you haven't had your ROI by then ... well.
I am for sure not a fan of these setup fees, as I have to tank these costs myself every now and then, if I need some additional IPs. however, I don't think they are 'crazy' ;-) it simply is a very large step and other models could have been chosen. but I like to think that the setup fee at least is a model to also deal with people that jump subnets and server a lot for whatever reason and actually cause work to the whole business. have them pay, that's fine.
Heh, I think I know who you mean by that. Nice observation.
ISTM that if you want a short term failover IP without paying a big setup fee, one way to do it is spin up a CX11 even at the increased monthly rate, and proxy through it to wherever. This even lets you get rid of the ipv4 on the target server, if it becomes possible to do that. (And yes I'd be happy to have a dedi with no ipv4).
yes indeed. the cloud IPs are probably harder to be kept clean anyway, because of the API stuff and the whole nature of the hourly billing concept. yet I assume abusers are easier to catch or at least they have different measures build around it already, so if the setup fee in the dedi range pushes that kind of business over to the cloud, it's probably a good effect ;-)
@Falzo
Agreed that there is ROI thing too and high setup price will deter people using more IPv4 frequently and it will also result in lowered add-on IPv4 usage for them. But still increasing price along with high setup fee is will result in my agency to look next server elsewhere instead of hetzner (our primary choice ).
Which is fair enough - vote with your wallet. That's what they do as well.