Open and honest communication with our customers is very important to us. That is why we would like to explain transparently why we are currently adjusting our prices and how this came about.
Our server calculations are generally designed for a long, stable term. Our goal is to offer fair and predictable monthly prices that remain stable over many years. However, the current exceptionally high purchase prices for hardware components are significantly disrupting this model. The RAM market is currently dominated by very few manufacturers. In our view, their pricing policy is hardly comprehensible and has driven up costs massively in a short period of time. The situation is similar for NVMe SSDs. In addition, it is apparent that even promised quotas and price commitments from suppliers are currently only reliable to a limited extent.
These significantly increased procurement costs arise directly from the provision of a dedicated server and cannot be distributed economically over the current contract period. We view this development critically—it affects us as a provider just as much as it affects you as a customer.
For this reason, we are initially adjusting the one-time setup fees for dedicated servers. This increase does not cover the actual additional costs by far, but it is a necessary first step in order to continue using high-quality hardware, meet our quality standards, and remain able to deliver.
At the same time, we would like to communicate openly that this is unlikely to be the only step. There are currently no signs that market conditions will ease. According to market research company TrendForce, price pressure is likely to continue in the current year. Therefore, adjustments to monthly prices will be necessary in the coming weeks. We are currently reviewing whether we need to extend the price adjustment to other product lines in addition to dedicated servers and our cloud service, and whether existing servers will also be affected.
We greatly value the trust and partnership we have built with our customers. We are confident that we will continue to offer you competitive price-performance ratios and kindly ask for your understanding.
