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as someone that has done colocation, dedicated hosting, and VPS, i'm a huge fan of dedicated hosting.

colocation was expensive and the hardware problems were all mine. i was pretty much tied to my local datacenter because i didn't want to ship a server around (which would be at least a day of downtime). pricing can be hard to compare because of power/space/bandwidth. if the equipment i colocated didn't have IPMI support, it could sometimes take up to a half hour to have a datacenter tech be able to put a remote console online when there were problems. at the end of it, i had a bunch of servers that were worthless on the resale market due to their age.

VPSes were never a serious option for the reasons stated in this article. it's impossible to track down performance problems when a dozen other VPS customers on the same server are taxing the CPUs and disks. i do use one that i pay $10/month for just to run a network monitor for some off-network perspective. they can be useful for single-task servers that don't need a lot of processing power like dns servers.

with dedicated servers, though, you can signup on a website and within a few hours have a complete server with modern CPUs, disks, and lots of memory assembled, tested, and connected to the internet with a remote console waiting for an o/s installation. when hardware goes bad, the server provider has lots of spare parts waiting around to be swapped in for free. and the best part of all, when you're ready to upgrade or move to a different provider, you just cancel the account and let the provider worry about what to do with the old hardware. i have a handful of these on various providers costing between $140-$190 a month for something like a core i5 ~2ghz with 8gb of ram, 2 big sata drives, and 100mbit ethernet with more than enough transfer every month.



Off-topic piece of advice: Not capitalizing your sentences severely degrades the readability of your post.


i have a handful of these on various providers costing between $140-$190 a month for something like a core i5 ~2ghz with 8gb of ram, 2 big sata drives, and 100mbit ethernet with more than enough transfer every month.

This seems ridiculously cheap compared to something with comparable RAM/CPU on EC2.

Is there a catch?


No catch, you've just discovered how ridiculously expensive EC2 is.


Then why do so many startups (and even established businesses like reddit and Netflix) use EC2?


Reddit and Netflix have entirely different models at their 'web-scale'

They actually DO need to be able to scale servers up and down based on demand-usage, time of day, growth patterns, etc.

For them, the extra EC2 cost is negated by being able to spin up an extra 400 instances in the evenings, and turn them back down after everyone goes to sleep.

Under the dedicated server model they'd ALWAYS need to have an extra 400 dedicateds to handle that peak load (and in fact would need to have far more to handle additional spikes, projected growth, etc.) Those dedicated servers would sit idle, costing them money most of the time.

This is the difference between 'web-scale' and your typical startup's usage pattern.


> They actually DO need to be able to scale servers up and down based on demand-usage, time of day, growth patterns, etc.

Cost wise, your best scenario is usually going to be dedicated or colo + EC2 or similar for overflow / peak.

If you do just dedicated hosting you need to leave enough spare capacity that you feel comfortable handling the spikes for whatever the worst case provisioning time your host has.

It's still cheaper than EC2.

But if you do dedicated + ability to spin up EC2 to take peaks, you can go much closer to the wire with your dedicated hardware, and increase the cost gap to EC2 massively. You don't need as much spare capacity to handle peaks any more. You don't need as much spare capacity to handle failover.

It's rare for it to pay off to spin up EC2 instances to handle inter-day "normal" load changes, though - most sites don't have differences that are pronounced enough over short enough intervals for it to be worth it. If you do the dedicated + EC2 model, your EC2 instances needs to be up no more than 6-8 hours or so on average per day before it becomes cheaper to buy more dedicated capacity.


Also, reddit used to have different budgets for servers (lots) and people (very little), so anything that reduced system administration was a win.


I don't think you'll find that reddit actually spins up extra instances though. They simply run 240 instances (right now). So it still seems like an odd choice, given they could probably reduce that to about 50 instances of dedicated hosting.


Also, they probably get much better rates from Amazon than you or I.


Thanks for the explanation. This comment (and indeed this whole thread) has been very useful to me.


You should not make your own technology judgements based solely on what other people are using. There's too many people jumping on the cloud bandwagon who have no clue what they're doing.


Making technology decisions based on what others are doing is the fastest way to make minor decisions. There's immense value in asking "what does company x do?" choosing that option, and moving on. In my experience time deliberating is time wasted--it's better to make a decision and move on. You can (and should) change later.


> Making technology decisions based on what others are doing is the fastest way to make minor decisions.

Sure, but a minor decision is who prints your business stationery or what kind of toilet paper to buy.

What hardware/networking platform to build your service on is not a minor decision. It will fundamentally affect the architecture of your entire system, and getting the decision wrong will potentially be expensive-with-a-capital-Failed-Company.


Reddit very much regretted using Amazon EC2 EBS disks for their site according to their blog. It killed their site for almost entire days, many times, for a long time. It's taken them months to undo that decision.


That was just EBS, not EC2 or any of the other AWS products. Most of AWS is fairly solid AFAIK, just expensive at certain scales.


Because of the cloud fad. People have always made bad IT decisions based on the flavor of the month. They still do.


Paying $140-$190 per month is already ridiculously expensive.

I pay about $3 per month for a very low-end xen VPS. Sure, I'm not running anything at all resource intensive on it.. but if I was maybe I'd spring for a higher-end VPS for $6, or if I really wanted to get crazy I'd find a really solid one for about $20 a month.

At $140-$190 a month, you'd better be getting a bunch of high-end dedicated servers and fantastic support, or you are getting seriously ripped off.

Hell, given the very modest needs of most small startups, having to shell out even $20 a month is a ripoff.


$140 for a second gen i5 and 8GB of ram is pretty reasonable.

A $20 VPS is only for pet projects. For a startup it's worth it to invest in a/some dedicated server(s). Having some redundant firepower of dedicated servers so that you don't have to worry about the upgrades for a while presents a sweet spot between saving cost and scalability.


My hoster of many years charges for a similar setup 60 EUR, "unlimited" bandwidth (whatever you can pump though 100Mbit within a month), RAID10, etc, 75 GB external backup, as a managed server. And at another big hosting company you get an even bigger package for 45 EUR, not managed though.

However, I remember that hosting in the US is surprisingly expensive for some reason, and has been for many years. Don't know why.


What company are you using?


It may be Hetzner (Germany). They have a 45 € root server with i7 quadcore, 16 Gb RAM, 2 x 3 Tb Disk (link: http://www.hetzner.de/hosting/produktmatrix/rootserver-produ...). I'm very content with what they provide, even good/friendly support.


In my opinion a very good choice. I run a EX4 Box there and i'm more than satisfied with the service they provide.

Recently i fired up a Support Request around 5am and got a response 6am when their support team picks up work. during the day you usually don't have to wait longer than one hour for a support response.

They have awesome hardware for reasonable prices... i migrated everything i own from ec2 to one EX4 box with 8 cores and 16 gig of ram for less than i payed at EC2...


Also have a look at OVH's Kimsufi brand: http://www.kimsufi.com/fr/

i7 + 24GB RAM + 2TB disc + 100Mbps for €50

(they geo-restrict their plans, and I think only the French get unlimited bandwidth; UK people have to survive on "just" 15TB/month, for example)


http://www.kimsufi.co.uk/ is showing unlimited for all three plans when I visit (from a UK IP address). I might have to get one of the lower spec (celeron/atom) machines for myself, do you have personal experience of the company?


Careful of the small-print: "The traffic is unlimited. If you exceed 5TB/month for the Kimsufi 2G, 10TB/month for the Kimsufi 16G or 15TB/month for the 24G Kimsufi the connection will be limited to 10 Mbps." My understanding is that if you do get restricted, the restriction isn't automatically lifted the next month. You might want to check with pre-sales to find out exactly what the process is.

I have had a box with them on and off (more on than off) for the last couple of years. I'm not doing anything critical there, but have also had no issues. Everything seems rock solid (which it should be -- Wikipedia says that "The company has six datacentres housing more than 100,000 machines.") You can reinstall from the web control panel, they rent KVMs, not sure what else to add.

The major things people tend to bring up in forum postings are:

Kimsufi is the "non-professional" brand, and hardware support is slower than the OVH parent. Nothing ridiculous, but you aren't going to get a bad drive replaced within a couple of hours either.

OVH has "low quality bandwidth". Of course, people making this complaint never quantify exactly what they mean by this. I just tested on my "24G" box, and see 30-40MB/s to cachefly, 90MB/s to Leaseweb in Amsterdam, 75MB/s to Linode in London, 3-4MB/s to Linode in Newark and Atlanta, 12MB/s to SoftLayer in Dallas, 10MB/s to SingleHop in Chicago, 11MB/s to Joe's Data Centre. (Of course these are large test files.)

If you're interested, there's no setup fee and no minimum contract length (check this for yourself, obviously), so I'd say go for it.


I might be interested at that.

5Tb as a limit really shouldn't be a problem for what I would use it for.

Then again for what I currently do 10Mbit would not be much of an issue either to be honest, though I'll ask about the procedure to reset this if I do set a sudden bandwidth spike one month.

There is VAT on top of that listed price, but even with that it is still a good deal if the kit and company are up to scratch. Last time I looked there was an extra cost for paying monthly, but that seems to have been removed.

> You can reinstall from the web control panel

That sounds interesting for a dedicated box. Are they using some for of SAN rather than each machine having its own local drives (so they can "reimage" your machine just by dropping its volume on the SAN array and creating a fresh one from template)? Or is this less instant (more like: make the request via the control panel and in X hours a passing support tech will plug a USB stick in and reboot to reinstall)?


Local hard drives, and I guess the (re-)install just boots from the network.

You can customise the partition layout, but otherwise get a standard set of packages for whichever distribution. There's a choice of the usual Linux suspects in 32- and 64-bit, FreeBSD, Open Solaris and Windows Server 2008.

The process is fully automatic and a CentOS install takes about 20 minutes.


I am using netclusive, but I think they only have a German language site. Others and with English site are Server4you or Hetzner.


No; you can get a VPS with those specs in that price range too. It's EC2 that's extremely expensive. I moved $1000/mo in fully utilized EC2 instances to dedicated servers for half the cost.


One more vote for dedicated hosting. It's a sweet spot for people who need anywhere from a handful to hundreds of servers. You have to get very large or have unusual requirements before colocation makes economic sense.


The problem is the "o/s installation" part, while I can install Ubuntu which is fairly easy these days, I'm not a sysadmin and I'm pretty sure I wouldn't be able to configure it properly. Do you recommend any book that'd teach me how to set up a dedicated server from start to finish, including all those little details of OS configuration?


I am a sysadmin, and frankly no book will teach you sufficiently.

Either you use Linux all day every day for some time, or hire someone to consult with you. That's my opinion anyway from years of consulting with people :)


I'm usually on Fedora, but I barely have to touch anything.


> i have a handful of these on various providers costing between $140-$190 a month for something like a core i5 ~2ghz with 8gb of ram, 2 big sata drives, and 100mbit ethernet with more than enough transfer every month.

With who?


http://m5hosting.com and http://singlehop.com are two that i'd recommend.

one thing to watch out for with dedicated hosting providers is that the networks are sometimes not so great. you may get a great deal on hardware and tons of bandwidth, but if it drops packets all the time, it's not worth it.

make sure they segment you off onto a vlan (see http://jcs.org/mitm for why), make sure they are well peered, make sure they actually have staff at or near the datacenter they're running things from, and make sure they have the ability to block certain traffic from reaching you if you need them to (see http://jcs.org/sip for why) so it doesn't count towards your bandwidth total.


There are plenty of options. Have a look at https://www.snelserver.com/ (they just sponsored a server for a project i am affiliated with) or Hetzner - http://www.hetzner.de/en/hosting/produktmatrix/rootserver-pr... 1and1 also has some nice offerings.

If you go this route you can just choose to run virtualization yourself with VMware ESXI or kvm and libvirt


I have that exact setup with Voxel.net for $180/mo. Just bought a 8core 16GB, 120GB SSD & 1TB HDD /w 1gbit/sec connection for $141/mo from Incero.com


Curious about incero.com. Seems like a 1 man company essentially renting rackspace from Netriplex. How comfortable are you with that as a point of failure?

I'm also uneasy with people that put up a page like this which basically makes it seem (unless you read the first sentence carefully) that you are in the secure hands of a much larger organization.

http://www.incero.com/datacenter-network

http://www.linkedin.com/company/incero-llc

Thoughts? (Note all blog posts are by "Gordon") I have less issues of course if the idea is redundancy.


Yes -- I should've prefaced that this is a combination performance test, staging server, hot failover and evaluation of the company. They appear to have been in business for about 3 years (whois info + archive.org), and have positive reviews on WebHostingTalk: http://www.webhostingtalk.com/showthread.php?t=1120499&h...

Info in that post seems to indicate more employees:

Real office location in Austin, TX

Experienced owners; over 8 years experience in the web industry, over 50 years combined business experience

I haven't even gotten my incero server yet (just ordered it Friday evening); but I am impressed by their offering - such as IPMI/KVM, which is often not offered by fly-by-night hosters (and not offered by EC2 in the form of out of band access).

I also happen to be in a unique situation of not needing 100% uptime for my startup - a few minutes of downtime to switch to a hot failover is a non-issue; so if Incero proves competent to me, I'll still give them serious consideration for production hosting (again, with proper hot-failover backup elsewhere); despite potentially being a one-man-show.

Difficult to say which is the lesser of two evils:

* Being the customer of a small business, having to potentially wait for response

* Being one insignificant customer among millions when there's a datacenter meltdown at AWS, with no phone number to call, and no neck to strangle until you get back up -- at the end of a long list of small customers.

I only casually mentioned Incero here, vs. Voxel in many other replies, as I believe voxel is the more appropriate choice for most startups.


I once rented servers from a company that came highly recommended on WHT, back in 2004 or so. One day, all their servers went offline. There were hundreds of posts in the thread at WHT. They never came back. It turned out they were operating at a loss and had stopped paying their bill to the data center for so long that the building finally pulled the plug on their racks.

I'm reminded of this every time I log in to my now 12-year-old PayPal account. I see "1 open case" in my "Dispute Resolution Center" -- it's the case disputing my prepayment for the servers to this host, which PayPal said they would leave open forever, and if the principals of that company ever opened a new PayPal account they would have to resolve those disputes with all their former customers first.


I have a quarter rack at the same place for many years now. I make a point of stopping by in person to get the feel of how they are doing business wise from time to time. Just by walking through the office, talking to the employees things like that. They are actually on the expensive side but I like that it keeps out the riff raff that could tax the network or create problems (when I say expensive I mean for bandwidth..)


In the end I guess I would go (in addition to redundancy) with the organization that was smaller with hopefully more expertise. I feel more confident with the smarter people being able to solve the problem and the smaller people having the motivation to deal with something and not have the personal aggravation of something not working. In a large organization it's easy to hide behind someone else or make excuses.

Ultimately better to have a person or two that will pick up their cell phone when they are in the mall on a Saturday or out for dinner but are quite willing to tackle the problem when they arrive home. Not because they have to but because they care about what they do and have a conscience.




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