> for other customers who have used much more resources
So, "Pi mal Daumen"* this means that US customers have a bandwidth consumption which almost an order of magnitude higher than that of European and Singaporean customers?
I wonder what it consists of.
* π x thumb = ballpark figure
Hetzner has been an established player in Europe for a long time. It seems plausible that they have enough customers who use small amounts of bandwidth to subsidise the heavier users.
Considering switching costs, if they enter the US market with better pricing than established players, it stands to reason that the customers that would be most enticed to move will be the heavier users.
EU transit costs and peering agreements are much more relaxed and cheaper than in US
Europe is also a lot smaller network wise. Hetzner only have to get their traffic to Frankfurt to get connected to practically the whole of Europe. For the US, Ashburn N.Virginia is good but it's still only a single coast.
They are definitely paying under 2c/TB for traffic though.
Routers, optics & interconnects aren't free. $0.01/GB is very reasonable.
> So, "Pi mal Daumen"* this means that US customers have a bandwidth consumption which almost an order of magnitude higher than that of European and Singaporean customers?
I wouldn't be amazed if Hetzner benefits significantly from peering, which is much more widespread in US than in Europe. Interesting piece on this from Cloudflare: https://blog.cloudflare.com/the-relative-cost-of-bandwidth-a...
It's quite possible that their costs really are significantly lower in Europe. No idea what things are like in Singapore.
You've written that the wrong way around. You've written the opposite of what Cloudflare writes.
They write that transit bandwith costs are similar in Europe and the USA, but Europe has more peering — it's around 50% of their traffic rather than 20%.
> The corollary is that in Europe transit is also cheap but peering is very easy, making the effective price of bandwidth in the region the lowest in the world.
Oops, yep, so I have. Should’ve read “much more widespread in Europe than the US”. Sorry, long day.
Really? Peering is very big in Europe, we have like 10+ CIX operators with 20+ locations in Germany alone.