I've been with them for a long time and my guesses would be: 1. Strict rules and strict customer verification. Crypto mining that wastes SSDs is not allowed. P

I've been with them for a long time and my guesses would be: 1. Strict rules and strict customer verification. Crypto mining that wastes SSDs is not allowed. Portscans, mass emails, etc. are not allowed. They also don't offer GPUs to the general public because it has been abused in the past. You usually need to send in ID documents just to open an account. My guess is this allows them to avoid most bad actors and, thereby, waste less money on fraud. 2. Extremely long-term investments. They typically build their own hardware and then use it over 10 years. They have their own flea market where you can rent older server models for a steep discount. That means they will have a long time where the hardware is fully paid off and still generating revenue. 3. Great service. With a mid-sized company, I can call their technicians in the middle of the night. The fact that we could call them in case of a crisis has generated A LOT of good will. But I would be truly surprised if they didn't make a profit off those phone calls, as they charge roughly 4x the salary cost. 4. High-margin managed services. In addition to just the cheap servers, they also offer a managed service where they will do OS and security upgrades for you. It's roughly 2x the price of the server and it appears to be almost fully automated. I know some freelance web designers who will insist on using Hetzner Managed for deployment for their clients, because it is just so convenient. You effectively pass off all recurring maintenance for €300 a month and your client is happy to have an emergency phone number (see #3) in case the box goes down.