Jan 142013
 
europe hosts increase IPv4 pricing

I just received email from one of my server providers in Europe “Hetzner” who I have used for over 2 years. I have a rather old server I got with a total of 8 IPs (included) in the monthly price as well as paid a hefty setup fee.

In the over almost 3 years I have never asked for price reduction or upgrade despite better offers elsewhere. Seeing as it was reasonable. I was surprised that Hetzner has out of nowhere increased the price for new IPs and also at the same time applied a 1 Euro per month additional charge for ALL existing IPs that were in fact included in the package. I know that they are not the most clean Hosts out there in their dealing and I have several problems with them. But then again I never put anything critical on their server except for my test projects or projects in development.

The change will affect everyone from March 2013. The thing is I was already looking for an alternate host out of Europe because communication and local laws is a big problem. Several times local individuals have, without substantial investigation, gotten my sites shutdown by easily issued court orders. Some of my sites like the really popular like Grepler.com which then I had to move out of this host due to this harassment.

Here is the extract of the email communication I received when I was checking my mails for price comparison of what i am paying and where to move.

As you are probably aware from various reports in the media, the number of available IPv4
addresses continues to drop drastically on a global level. In Europe, the pool of available
addresses has already been completely allocated. We shall also not be receiving any further
IPv4 addresses from the Regional Internet Registry for Europe, Reseaux IP Europeens (RIPE).

As demand for IPv4 addresses continues to remain very high, we are forced to tighten
restrictions as regards both their use and allocation to clients.

For additionally allocated IPv4 addresses and subnets, we are obliged to introduce a new
pricing model for both existing and new orders.

As a first step from 1 March 2013, additional single IPs which are to be used in addition
to the Main IP will be charged at a price of 1 euro per month. This excludes the additional
IP address required for the chargeable KVM-over-IP Remote Management Option. The change affects
existing clients, who have obtained IP addresses without additional charge. Nothing changes for
clients who are already being charged for additional single IPs.

Furthermore, adjustments in the monthly price for regular and failover subnets will take place.
Clients who are affected here are those who have up to now received subnets free-of-charge or
at favorable rates.

From 1 March, the price will change for /29 subnets which have already been allocated to
clients. Prices for larger subnets for existing contracts will be adjusted in the months
following, so as to provide clients who have correspondingly larger nets with a little more
time to prepare for consolidation of the nets.

The following overview serves to clarify the introduction of the pricing adjustment as well
as the future conditions:

Price valid from  Product              Price per Month
1 March 2013      /30 Subnet           4 euros
1 March 2013      /29 Subnet           8 euros
1 March 2013      /29 Failover Subnet  18 euros
1 April 2013      /28 Subnet           16 euros
1 April 2013      /28 Failover Subnet  26 euros
1 May 2013        /27 Subnet           32 euros
1 May 2013        /27 Failover Subnet  42 euros
1 May 2013        /26 Subnet           64 euros
1 May 2013        /26 Failover Subnet  74 euros
1 June 2013       /25 Subnet           128 euros
1 June 2013       /25 Failover Subnet  138 euros
1 June 2013       /24 Subnet           256 euros
1 June 2013       /24 Failover Subnet  266 euros
1 June 2013       /23 Subnet           512 euros

The “Price valid from” is for existing subnets. The prices mentioned above immediately apply
to all new orders for subnets. All prices incl. 19% VAT.

 

The email then described how much I will add on which is 8 euros. This price increase includes ALL IPs including the bare minimum  single IP you need for a server to operate anyway. My current server where the impact is highest is this old server I have which is AMD Athlon(tm) 64 Processor 3800+ single CPU with 8 IPs for which I pay 41 Euros to this day. with 8 Euro added it is a 20% increase.

 

Further to this they add that you can return the IPs (so they can sell for more) or you can get max of 3 IPs (chargeable)

(contd…)With this measure, we hope to receive any unused single IPs as well as subnets from you.
Depending on the size of the subnet, it is possible for you to return whole subnets to us
and to receive chargeable single IPs (max. three per server) in return

 

 

Well for one I knew I should not have paid them again to upgrade the second server I have with them which has seen several hardware failures in the first year of operation. Secondly I should have made my move long time ago, but you know its a whole lot of work to do so. I think it’s a good time to move out. What is disappointing is that they have changed the terms of agreement. What they included as part of package is now being charged again. Fact is we ran out of IPv4 over an year ago if I am not wrong. Obviously some people are willing to pay a bit more and now the same Hosts who used IP addresses in their offers are smashing through the agreements to get them back for that extra penny.  They want their subnets? They can have their whole servers back.

Problem is they don’t support IPv6 anyway. A lot of new hosts already support it and the DNS like Cloudflare, AWS RDS and Godaddy(not sure about this guy) also support it.

So far it was a very stressed situation with Hetzner.de and I am more than happy to let go and move on. I completely blame myself for falling for the cheap hosting when I went to hetzner. I don’t think other europe hosting is behind.

 

Considering 100Tb or liquidweb. Problem is, I automatically hate hosting that paste the word “cloud” for no good reason except buzzwords to charge more. So those are easily out. Feel free to suggest a good host for me :)

 

  11 Responses to “Lack of IPv4 addresses in Europe? ISPs use opportunity to raise prices”

  1. OVH (another hosting provider) is now applying the same policy for IPv4, with the main difference that they fully support IPv6. Overall this might be a good thing as it puts pressure to reduce the usage of IPv4 and migrate to IPv6.

  2. Weird that they’re charging you even for the basic single IP, because they haven’t done that with our server. Then again we don’t have a subnet, we have 4 separately routed addresses, and so we’ve only been charged for the extra 3… I’m sure they’d happily convert you to a similar arrangement.

    Frankly I don’t see this as price gouging (and I’m very happy with Hetzner’s pricing, TBH) but rather as responsible stewardship of IP addresses. Your mileage, as they say, may vary.

  3. My company uses “cloud” for our new VM hosting product (bigv.io) but 1) in small letters, 2) in inverted commas, 3) I hate it too (see http://blog.bytemark.co.uk/2011/11/03/the-cloud-is-your-install-script ). If you wanted dedicated servers we do ‘em at http://www.bytemark.co.uk/dedicated/ or if you wanted to try BigV I made you a signup link at [snipped: thanks] . We’re quite good I think :)

    I’m not sure what we will do on IPv4 addresses yet – still plenty left over but making sure people are actually using them will be pretty important this year. So billing for them is one way – auditing or NAT will be another if people still need IPv4 when we’ve really run out.

  4. Hi! I work for a web hoster as well, though in North america. I can’t say I find if surprising, or even unexpected. IP’s ARE in short supply, in Europe even worse then over here. It used to be we (the web hosting company) were being assigned /16’s when we asked for ip’s. For the past year we’ve only been getting /19’s (1/8th of a /16) assigned to us. We are still selling the same amount of servers as before. So changes have to be made. You’re going to start seeing this at more and more web hosters. :)

    • about two years ago I was writing some code to get block information from registry and noticed that lot of blocks were being resold from north america over to other developing countries possibly at a premium. It seems that there is the wrong motive here. One cannot justify profit by any means. both subscribers and ISPs should work to implement IPv6 first instead of forcing higher cost in this economy. As I mentioned hetzner does not even support IPv6. I am happy to let go honestly but there are somethings you still cannot do without IPv4. naked domains cannot use CNAME, cloud load balancer work with TCP and not UDP etc. Without the support from hosting providers we are putting the breaks on innvovation while letting hoarders get away with much needed IPs. I am moving to IPv6 what i can using CNAME where I can. for e.g. acmedata in on openshift using ELB but only recently naked domain (partially and with IP) is supported. AWS has recently added naked domains for S3 but what do I do with those services like custom servers that don’t support this sort of stuff , example virtual servers and RDP. honestly I feel like we have been left to fend for ourselves and this is a dog-eat-dog world :D which is true.

      • I don’t think it has as much to do with profit as you think. I can’t speak for all isp’s obviously, but at ours (which shall remain nameless :) ) we’re looking at the possibility of raising the cost per IP, not to make profits (given the overhead of billing etc we wouldn’t make much I think) but to discourage “hoarding”. A $0.50-1.00/month increase per ip wont hurt the guy with 8 ip’s that much, but WILL hurt the guy with 300 ip’s :)

        Also if you look at the going price of ip addresses on the market it seems to be around $11-12 per ip. (I’m talking for an ISP to buy a netblock, not what a web hoster charges their customer) Companies have to take that into account as well. Over here Arin is still giving IP’s, but not for long. As the shortage increases, that price will only go up.

        Unfortunately, as you said we can’t get rid of IPv4 :( Until 90+% of end user ISP’s are IPv6, no one will buy a server that is IPv6 only anyways… :(

        Thomas

  5. Hetzner does support IPv6 for a couple of years. Just read the documentation. Also IPv4 shortage is visiable everywhere, not only Hetzner and OVH but all other major providers will start to put pressure on people that “waste” addresses without having a business (and pay for it).

    If 8€/month is such a large amount for you, have fun moving your system around to a couple of new hosters in the next years as the shortage will further increase address pricing soon.

    • ok I didnt know that about Hetzner and IPv6 and I will check this out whether its doable. Secondly as I said this is actually good that hoarders will be hit but there are also many of us who have had the IPs for years and for justified use case. Lastly not all of us host websites and can do vhosts, I for one writ my own servers or host game servers that do not support IPv6 by design. It’s great you are a happy customer ohf hetzner. So was I at the beginning until things with hezner started to look very wrong. In fact I promoted hetzner to everyone I knew for great prices. That’s until I met their real problems. Which are unrelated to this new issue. I am not targeting hetzner in particular and secondly I have mentioned that given the issue must affect several european hosting as well. Reddit comments seems to confirm that and go on describe that further applies to US hosts. However most hosts are being watchful on new assignments not on existing customers.

  6. Hi,
    I receive the same email and i send them back a huge cancellation
    I have a small company with some servers on Hetzner and this email is tragic because they did not pay
    more Euros to took the ip and re seller them to us. They just increase the prices
    Bye Bye Hetzner keep the empty servers for your self.
    BTW , i move everything on my favorite dc on phoenix, email me for details.
    Friend stay away from godaddy the are worst than Hetzner.
    Best regards.

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