It’s a) a mixed calculation. Not everyone is using the 1TB and the Transfer. b) Storage at scale is cheap. c) Transfer is even cheaper at scale. d) It’s “only” on one Server with a raid system e.g. no cloud with multiple copy’s.
Transfer basically costs $0 for them because they pay for capacity ("size of the pipe"), e.g. $0.50/mbps to their IP transit vendors. When cloud companies charge you for transfer ("stuff through the pipe") e.g. $0.1/gb, they're basically extracting "free money" from you. They want to charge you some minimal amount for transfer to disincentivize everyone filling the pipe, but they don't actually need to do that to cover their costs. Hetzner is taking an alternative approach of capping transfer instead of pricing it per GB.
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It’s a) a mixed calculation. Not everyone is using the 1TB and the Transfer. b) Storage at scale is cheap. c) Transfer is even cheaper at scale. d) It’s “only” on one Server with a raid system e.g. no cloud with multiple copy’s.
Transfer basically costs $0 for them because they pay for capacity ("size of the pipe"), e.g. $0.50/mbps to their IP transit vendors. When cloud companies charge you for transfer ("stuff through the pipe") e.g. $0.1/gb, they're basically extracting "free money" from you. They want to charge you some minimal amount for transfer to disincentivize everyone filling the pipe, but they don't actually need to do that to cover their costs. Hetzner is taking an alternative approach of capping transfer instead of pricing it per GB.
Thanks for the explanation Ellie.