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> The fact that electricity costs is the dominating cost of cloud computing In the article, they say that electricity has gone from .29 to .45 euros, a 55% inc
by prirun 4y ago
> The fact that electricity costs is the dominating cost of cloud computing
In the article, they say that electricity has gone from .29 to .45 euros, a 55% increase. If electricity was the dominating cost, seems like they would have raised the price way more than 10%.
- lukeqsee 4y agoThe article didn't seem to say how much they're raising prices, only that they're raising prices due to electricity. Where are you pulling seeing the price change %? I may need to edit that to marginal, if it's only 10%. :)
- Majestic121 4y agoThe article gives the prices in a table in you scroll down a bit : electricity/air conditioning rate old price* new price*\ Germany € 0.29/kWh € 0.45/kWh Finland € 0.12/kWh € 0.22/kWh
- LeonidasXIV 4y agoThat's the price for electricity/air conditioning (presumably for Hetzner), not how much their products will rise in price.
- Majestic121 4y agoIt is the electricity/air rate for their colocation service
- michaelmior 4y ago> we are forced to increase the prices of many of our products by approximately 10%
- polaco 4y agoFirst paragraph: "we are forced to increase the prices of many of our products by approximately 10%"
- lukeqsee 4y agoMissed that. Thanks!
- deleted 4y ago[deleted]
- adrian_b 4y agoAssuming that the 10% price raise is equal to the increase of the electricity cost, that implies that after the increase the cost of the electricity represents slightly more than 25% of the price (which must also include the profit, besides the other costs). So the electricity is not really dominating the costs, but it might still be the largest component of the cost. There is an estimate that Amazon has a 61% profit margin for cloud services. Hetzner must have a lower profit margin, but nonetheless the electricity could be as much as half of the costs.