They run their own data centres and have for a while. There is a pretty big industry for that sort of thing as an alternative to “the cloud” here in Europe.
We used to use nianet to house our hardware in Denmark. Basically these companies does hardware renting and they also do hardware renting with more steps which is where you rent rack space but own the hardware. They provide the place for the hardware and they also have multiple locations so that you have both backup and redundancy, and while it doesn’t scale globally in 20 years I’ve literally never worked on anything that needed to beyond having some buffer caches for clients logging in on their vacations or something like that.
What Hetzner seems to be doing with the DO styled hosting, and this is just a guess, is that they are one or the many EU companies preparing for the big EU exodus from the non-EU cloud. Which is frankly a solid bet these days where both AWS and Azure are increasing prices and are becoming more and more unusable because of EU legislation. Part of this is privacy which Microsoft and Amazon are great with in terms of compliance, but part of it is also national security. I work in an investment bank that builds solar plants, since finance and energy are both critical sectors we risk being told that half of the finance/energy companies in the world can’t use Microsoft because the EU seems it as a single point of failure if our entire energy sector relies on Azure. Which is sort of reasonable right? But what this means for us is that we can’t vendor lock-in, not really, because we need to have up-to-date exit strategies for how we plan on being fully operation a month after leaving Azure. Which is easy when you just containerise everything and run it in VMs or similar, and really annoying if you go full in on things like AKS. Which doesn’t help our Azure costs.
Anyway, right now we are planning on leaving Azure because of cost. Not today, not next week but sometime in the next 5-10 years and a lot of these EU cloud alternatives that actually operate the hardware instead of renting it are likely going to be a very realistic alternative. And that is the private sector, I spend time in the EU public sector which is a massive amount of money and I’m guessing it’ll leave both AWS and Azure by 2050. Some of these EU cloud initiatives is going to explode when that happens, and right now, hetzner is one of the best bets.
To get back to your question, DO rents server space. I have no idea where they’d rent it in Germany but they could potentially be renting it from Hetzner.
Couldn't agree more, I think Hetzner is probably Europe's best bet on a hyperscaler. One of the more telling indicators IMO is their growing market share outside of the EU/DACH.
To add on to the comments about Hetzner building their own custom hardware, they also custom built their own software stack. They rejected the hype that was OpenStack and worked diligently on their own hypervisor platform (that they are incredibly secretive about) and that appears to be paying off in spades for them. Most sovereign cloud plays end up being suffocated by the complexity, and incoherence, of the OpenStack ecosystem. It just becomes impossible to ship.
Could you please elaborate how and what you know about managed Kubernetes on Hetzner?
I am asking for this since a while and was told there is no way Hetzner would offer such a service. Certain Posts on Social Media have also never been answered with any kind of indication that they are actually working on it.
They were in person recruiting at KubeCon EU this year and were advertising a good number of Kubernetes engineering roles. Definitely gave me the impression they were taking Kubernetes seriously but looking back a managed offering was just speculation on my part.
So huge grain of salt, you are totally right. It could be internal platform work only.
I think you might misunderstand me. The 2050 is a guesstimate and it's just my opinion on the matter. As far as planning ahead goes, you plan for 5-10 years when you try to figure out where to "iron" your enterprise IT. This is because that's how long your hardware will last if you go the route of renting rack space with your own hardware. I think we tend to plan for 8 years, with some space for "unintended" early failures on things like controllers after 4 years. So while you can contract big-cloud vendors for shorter, I think ours is on 3 year contracts right now, you still sort of do the business case for much longer. Maybe not every 3 years, but at least every 6 years.
You do the same on the other side of the table. Companies like Hetzner knows that EU cloud sollutions are likely to see growth, so it's only natural that they invest in the tech to put themselves in a prime position to jump on the opportunity. Selling a good product while you do so is the way I would do it personally, but you also have EU cloud initiatives backed by VC money going straight for the endgame.
I think multi-national energy sector should be working toward the goals without the regulations. The more prep done before the change the smoother the transition.
Hetzner also do some crazy-cool stuff, especially around the 7950X3D, cooling, AM5 etc. (https://www.youtube.com/watch?v=V2P8mjWRqpk). They also do some amazing stuff with ARM (their cloud offering is really solid for this).
We used to use nianet to house our hardware in Denmark. Basically these companies does hardware renting and they also do hardware renting with more steps which is where you rent rack space but own the hardware. They provide the place for the hardware and they also have multiple locations so that you have both backup and redundancy, and while it doesn’t scale globally in 20 years I’ve literally never worked on anything that needed to beyond having some buffer caches for clients logging in on their vacations or something like that.
What Hetzner seems to be doing with the DO styled hosting, and this is just a guess, is that they are one or the many EU companies preparing for the big EU exodus from the non-EU cloud. Which is frankly a solid bet these days where both AWS and Azure are increasing prices and are becoming more and more unusable because of EU legislation. Part of this is privacy which Microsoft and Amazon are great with in terms of compliance, but part of it is also national security. I work in an investment bank that builds solar plants, since finance and energy are both critical sectors we risk being told that half of the finance/energy companies in the world can’t use Microsoft because the EU seems it as a single point of failure if our entire energy sector relies on Azure. Which is sort of reasonable right? But what this means for us is that we can’t vendor lock-in, not really, because we need to have up-to-date exit strategies for how we plan on being fully operation a month after leaving Azure. Which is easy when you just containerise everything and run it in VMs or similar, and really annoying if you go full in on things like AKS. Which doesn’t help our Azure costs.
Anyway, right now we are planning on leaving Azure because of cost. Not today, not next week but sometime in the next 5-10 years and a lot of these EU cloud alternatives that actually operate the hardware instead of renting it are likely going to be a very realistic alternative. And that is the private sector, I spend time in the EU public sector which is a massive amount of money and I’m guessing it’ll leave both AWS and Azure by 2050. Some of these EU cloud initiatives is going to explode when that happens, and right now, hetzner is one of the best bets.
To get back to your question, DO rents server space. I have no idea where they’d rent it in Germany but they could potentially be renting it from Hetzner.