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