Why are Hetzner's dedicated hosting servers so cheap?

Kal K

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Does due to cheap bandwidth in Europe (Germany and France) hence Hetzner can save up on this, making their pricing more flexible and lower compared to other dedicated server companies. What is the main reason?
 

VirtuBox

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By browsing their offers, in most of case, they use Core-i7 Processor, really less expensive than XEON. If a Core i7 is a powerful CPU, it doesn't provide the same guarantee than a XEON. Especially for security or availibility.
And the XEON servers (PX series) are cheap, but you have to pay around $130 of setup fees.
 

Mujkanovic

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Does due to cheap bandwidth in Europe (Germany and France) hence Hetzner can save up on this, making their pricing more flexible and lower compared to other dedicated server companies. What is the main reason?
That could happen but to be honest your hosting specifications are relly low quality, I bought a dedicated 32GB of RAM there a year ago but websites run slowly although optimize server for caching and configs.
If you run your websites for people having more spare time then it will be suitable to your needs but if you run your websites for business, it will kill your business because most of people have to wait from 6 to 8 seconds to load a web page on their servers.

Just my 0.02 cents!
 

enomyn

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Does due to cheap bandwidth in Europe (Germany and France) hence Hetzner can save up on this, making their pricing more flexible and lower compared to other dedicated server companies. What is the main reason?
Everything has its value. But do remember one thing, you will get on what you paid.
 

StackNetwork

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Those are a bit old hardware, might be retired from some other big companies, and they got the hardware cheap.

Bandwidth is cheap there too, plus they are backed by investors and government.
 

uniwebhosting

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Most server's desktop machines and desktop processors, all servers 100% unmanager, and support only the basic level hardware. Servers are good, but require full administration. The link is of high quality.
 

Hetzner_Online

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Hi everyone, Sorry to just now be responding to this thread. I'm a new member here! There are several reasons why we at Hetzner Online can offer our servers so cheaply:
1) We build and own our own data centers. This allows us to control the design of the building, which saves energy. And it's easy for us to add new data centers if we need more space.
2) We do not outsource. We staff our own builders, electricians, hardware assembly teams, software developers, system administrators, and support staff. Even the English teacher (that's me!) is in-house!
3) We build our own servers. We also work with suppliers to by hardware especially designed for our needs. This prevents waste and allows us to buy server components in bulk.
4) We pay attention to the environment. This actually benefits us. Electricity is expensive, so every time that we save energy, we are helping the environment and helping to keep costs low.
5) Automation - we've got some pretty talented staff who are great at automating processes. This means that products are quickly deployed and it saves on staff costs.
6) We don't make you pay for support if you don't want a lot of it. That's why we offer root servers (new models of dedicated root servers, virtual servers, and dedicated servers on our server auction) for experienced administrators. But not everyone is an experienced admin, so we also have managed servers and web hosting packages. So customers only pay for the support they need.
I hope that information helps!
--Katie, Marketing, Hetzner Online
 

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