Have you noticed that the web hosting industry is a race to offer the most function for the least price? Well, Hetzner has raised the bar again. Their new VPS plans are shaking up the hosting world and if you know Hetzner, you know they don’t think small.
What is better?
Why is that? Because $10 a month for a full 2-core, 4GB NVMe VPS cannot realistically be matched by smaller providers unless they provide some other distinctive value, such as personal support or personalized interactions, or a local server.
Many smaller providers are already basically reselling Hetzner's VPS servers under their own company name and brand. So, this just gives them a new offering, but it may squeeze their margins further, as Hetzner’s resale pricing is already competitive.
Nonetheless, one thing is for sure - Hetzner knows their customers. They have a small target market in the developers, small companies, and the tech savvy who are just looking for solid servers at reasonable prices, instead of massive corporate customers.
And, if you have even thought about trying Hetzner for your next project - this is the time.
What Is New in Hetzner’s VPS Plans?
Hetzner's new VPS line comes with an increased pricing structure but better CPUs, NVMe storage, and increased memory; all at the same price. Upgrades to modern AMEP EPYC and Intel Xeon means a faster and smoother website and applications.What is better?
- More CPU cores and RAM for the same price or lower.
- All NVMe storage, which speeds up sites and apps significantly.
- Good bandwidth options and superb for sites that see consistent traffic.
Implications for Smaller Hosting Providers
Without sugar-coating things, Hetzner has consistently provided some of the top deals in hosting. And now they are creating even more obstacles for smaller providers to compete.Why is that? Because $10 a month for a full 2-core, 4GB NVMe VPS cannot realistically be matched by smaller providers unless they provide some other distinctive value, such as personal support or personalized interactions, or a local server.
Many smaller providers are already basically reselling Hetzner's VPS servers under their own company name and brand. So, this just gives them a new offering, but it may squeeze their margins further, as Hetzner’s resale pricing is already competitive.
Perspectives from the Community
On forums like LowEndTalk, there are conversations developed around this offering. Some are just saying "Hetzner just beat everyone again" or are curious about network speeds or server locations, as all fun in the questions of the customer.Nonetheless, one thing is for sure - Hetzner knows their customers. They have a small target market in the developers, small companies, and the tech savvy who are just looking for solid servers at reasonable prices, instead of massive corporate customers.
Conclusion
If you own a small hosting company, you are really at a crossroads right now with two options:- Refocus - offer more tailored service or try to service a niche.
- Utilize Hetzner's servers and build your brand on top of their servers.
And, if you have even thought about trying Hetzner for your next project - this is the time.