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Hetzner Pricing/en

There are some people who, when viewing our website or hearing about us for the first time, have a hard time believing that we can offer such great servers and support at such a low price. This article sheds some light on the reasons behind the amazing price/performance ratio we offer.

Inhaltsverzeichnis

Data Centers

It all starts at the bottom. Not only do we own our own data centers, we also own the land they are built on. Hetzner was founded in 1997 and after more than 10 years of success in the web hosting business, we decided to start building our own data centers. Having spent years setting up and configuring data centers within existing buildings, we knew all about the compromises that entailed. Those years gave us the experience to know exactly what we wanted from a data center.

The first new data center was completed in 2009. Since then we have operated two large data center parks in Falkenstein/Vogtl. and in Nuremberg. An additional location is currently being constructed in Finland.

We have become experts at building these data centers; instead of outsourcing the work, we staff our own building crew. We have electricians, electrical engineers, people for air conditioning, construction supervisors, architects and many, many more. This gives us complete and total control over what is designed and built. We also have our own trucks to transport the servers to the different data centers. We operate with a very good in-house production depth.

By building our own data centers we are able to influence every single aspect of them. One great example of this is the energy efficiency of our data centers. Each kWh of electricity which we do not use enables us to offer our products and services at a lower cost.

Servers

It is our aim to offer servers with an excellent price/performance ratio. Achieving this aim as closely as possible requires a whole series of measures. First of all, we build the servers ourselves. Most people know that building your own computer is cheaper than buying a pre-built one. The same principle applies to servers.

Building our own servers also means we have full control over what goes into them. We select our server components very carefully, and do so on the basis of four aspects:

  • Performance
  • Price
  • Power consumption
  • Quality (robustness)

We do not spend a lot of money on nice 1U 19" rack mount cases. Nobody but our technicians see those cases and we do not need to spend a lot of money on features we do not need. We use an easy, custom made case, which is specially designed for our airflow requirements and comes with a high efficiency and long lasting power supply.

The way we spend our money is based on our many years of experience in the web hosting market. For example, we only use Juniper gear in our backbone, we use fully-redundant boxes and even then we use two of them in every location to achieve another level of redundancy. However, we still cannot guarantee a 100% stable and hassle-free network, but we are extremely proud of what we can offer and our clients are quite happy with our network. We could spend a lot of money on improving our network by just a tiny bit, but we would rather spend our money more efficiently.

Automation

We offer well-designed, reliable and highly-automated products. For instance, our normal server deployment for a server order looks like this:

- 20 days: We order the components for the server (manual process)
- 15 days: The server is built (manual process)
- 12 days: The server is rack mounted in a data center (manual process)
- 10 days: The server performs a burn-in test for around two days (automated process)
- 8 days: All test results are checked and stored in our hardware database (automated process)
- 8 days: The server is powered off (automated process)
+ 0:00 We receive a server order (manual process - done by the client)
+ 0:00 The order is approved (automated procedure if no special requests - otherwise manually reviewed during business hours)
+ 0:01 System sends WOL-Signal to the server (automated process)
+ 0:02 Server boots from the network and starts to perform an image installation (automated process)
+ 0:14 Some post image installation tasks are performed like setting the network config, date and time, password, etc. (automated process)
+ 0:15 The server reboots into the newly installed operating system (automated process)
+ 0:16 We send out the server login details to the client (automated process)

We have a very similar process for handling server cancellations. So both processes (ordering and cancellation) are almost fully automated. This process works fast, is reliable and very cost efficient - as long as the server ordered is a standard one without any modifications. With a custom server we need to manually build it, meaning it can take up to 3 days for the server to come online.

Prices

The pricing for our servers is based on the actual cost of the server and the support. We try not to cross subsidize products or services.

If we consider the typical life cycle of a server, the highest costs arise from the moment when new hardware is purchased. Also, the depreciation of a server is by far the largest during its first month of operation. Therefore, we charge a setup fee for most of our servers (older servers tend not to have a setup fee). There are a number of competitors who offer servers without a setup fee, and some even offer heavily-reduced monthly prices for the first few months. This pricing strategy is completely opposite to the actual costs involved and must be made up in some other way. We feel that the best price/performance ratio lies in keeping our price structure as close to our internal costs as possible.

Many clients ask us about discounts on the setup fee. Each reduction in the setup fee of a server means we need to set the base (monthly) price of the server high enough so that we do not lose any money on discounted servers. The moment we were to offer discounts would also automatically mean that we would need to ask for higher monthly prices.

These are strategic decisions which make the business process fast and uncomplicated and ultimately also very efficient. We do not need to spend any time haggling or trying to convince clients of our special deals. Clients do not need to wonder if they are getting the best deal, every deal is the best deal.

Conclusion

The information on this page gives a glimpse into our pricing structure and shows how we can offer such a great price/performance ratio.

Clients have to decide if our concept fits with their requirements. We know that we are not able to handle 100% of client requirements, in fact, we do not even try to do that. We try to handle around 95% (the mainstream) and do that in an efficient and reliable way. If you are uncertain, simply give us a try. We have monthly contracts, so if you don't like us, it is easy to move on.



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