AWS and Azure Are at Least 4x–10x More Expensive Than Hetzner

Your comparisons are similar to many others out there that focus on measuring basic cpu and memory. This type of easy comparison where AWS/Azure/GCP is treated as a "dumb" datacenter is easy for alternatives like Hetzner or self-hosting to "win".

>Do you really need the advanced features of AWS and Azure right now? Or would a simple virtual machine at a reasonable price be sufficient? [...] There’s a growing movement among tech companies and startups to opt for more cost-effective hosting solutions like Hetzner. The high costs associated with AWS and Azure

Many (most?) YC startups are not using AWS as a low-level dumb data center with blank EC2 virtual machines and installing infrastructure software like Linux and PostgreSQL on it. Instead, they are using higher-level AWS managed services such as DynamoDB, Kinesis, SQS, etc :

Therefore, the more difficult comparison (that almost no blog post ever does) is the startup's costs for its employees to re-create/re-invent the set of higher-level AWS services that they need.

Sure, there's the "but you don't need to pay expensive AWS costs for DynamoDB when one can just install open-source Cassandra at Hetzner; and instead of AWS Kinesis, install your own Kafka, etc". Well, you add up more and more of those "just install and manage your own X,Y,Zs" and you can end up crossing the threshold where paying AWS cloud fees cost less than your staff maintaining it. The threshold for AWS isn't just massive scale of 100+ million users. The threshold can be the complexity and scope of higher-level services you need the cloud to take care of on your behalf so your small team can concentrate on the aspects of the business that are true differentiators. In other words, instead of employees installing Cassandra, they're adding features to the smartphone app.

If your company doesn't need any of the Big 3 clouds' higher-level platform services, it's easier to save money with alternatives.

They will have object storage soon, but dont hold your breath for one-click kubernetes etc. So the fancier you infrastructure, the more you your startup would need to invest in time and money to use Hetzner and thus make it "not worth it".

For example, instead of the ancient F8 series used in the article, a modern D8as_v5 Azure instance under a 3-year Savings Plan is $115/mo.

Also, the article compares CPX41 to EC2 and Azure VMs with dedicated cores, not shared cores. The CCX33 Hetzner model is closer to the normal clouds, and costs $50/mo, so now we're at 2x the price instead of 10x the price. (Conversely, the B8als_v2 size uses shared cores and is also 2x the price of CPX41 at $74/mo)

For that 2x cost you get a lot more features, first-party and third-party support, more locations, faster networking, etc... That's worth it for most large enterprises that care about ticking checkboxes on audit reports more than absolute cost. Or to put it this way: the annual price difference is just $600, which is the same cost to an org as half a day of engineer-time or less. If Hetzner is the slightest bit more difficult than a large public cloud VM for anything, ever, then it's not cheaper. This could be patching, maintenance, migrations, backup, recovery, automation, encryption, or just about anything else.

There are other differences as well. Hetzner has a separate charge for load balancers and IP addresses, whereas with Azure they're included in the price of the VM.

The biggest cost difference is that the public clouds charge eyewatering amounts for Internet egress traffic. Azure is about 100x as expensive as Hetzner, which is just crazy.

Both of these scale to zero and offer 180k vCPU/s free per month, 360k GB/s free per month. You incur billing only against the active execution time. Cloud Run Jobs has a whole separate free monthly grant as well.

You can run A LOT for free within those constraints. Certainly a blog or website. To prevent cold starts, just set up Cloud Scheduler (also free for this purpose) to ping the container every few minutes.

Use Supabase for a DB or one of the serverless options (if it works for your data use case) like Firestore, CosmosDB and you can run workloads for a few cents per month with an architecture that will scale easily if you need it to.

6 min video showing the receipts and how easy this is: https://youtu.be/GlnEm7JyvyY

YMMV but all costs aren't instance costs.

This is one of the more important points and why the point "The learning curve of a single server isn't so big, especially when compared to AWS" is sitting a bit wrong with me.

Sure, if you talk about 1 VM, I agree. And I wouldn't second guess doing this, at all. It would be my initial plan as well as long as I don't have to make any strong availability guarantees. And for this use case, I'd call AWS a bad choice. It's not a simple VM provider.

But once you start running e.g. a redundant postgres cluster for updates without downtime, the amount of stuff to know also grows, a lot. Suddenly you also need backups, tests of backups. And this is where AWS/the cloud allows you to save time, and treadmill time.

The pricing is more on par with Digital Ocean/Linode.

If you're looking for a cheap one-off server, the server auction has some very good deals.

[0] Full details at https://blog.searchmysite.net/posts/migrating-off-aws-has-re...

Take the recent Lichess downtime, for example. Their main server had a hardware issue that required physical intervention. This meant the site was down for over 10 hours, and there wasn't much they could do except wait for OVH to send a tech.

If Lichess had been on AWS, the provider would have automatically moved their workload to a functioning server, and the outage would have been much shorter or possibly avoided altogether.

For Lichess, a non-profit, this tradeoff still make sense. Their service, while important to its users, isn't critical. Nobody dies if Lichess is down and the cost savings help them keep running. But if your business can't afford downtime, the extra guarantees from a public cloud provider can definitely be worth paying for.

They're leaving other things on AWS, i.e. partial migration is quite doable.

Hetzner starts at 50 Euro, only has servers and Europe and is going to require a ton more work.

AWS has the right idea, they give everyone who asks nicely thousands in free credits to get started. Then 2 years in your hooked. I don't want to learn a new system.

I have only stumbled on one service that do it. its a datadog alternative, so the bar is not that high for pricing.

Even with automation tools like Ansible or immutable server images, packing as Docker images and running on a container orchestrator have always been much easier.

Hetzner doesn't have the services AWS provides, that's the reason most companies I know use AWS for.

If we could run our crap on any server, we would, but managed services are still cost-effective vs hiring our own 24/7/365 rotation of on-call ops people.

It seems lost on the authors that yes that might work for some folks just fine, but others really do want the Land Rover and all its additional baked in features beyond getting you from A to B.