The cost of hardware has risen significantly. DRAM in particular. Infrastructure providers are currently experiencing the consequences of the global AI boom, which means that we are also affected by the crazy demand for memory and storage. Because older product was still in stock, we were safe for a while. However, that is now over. The new prices are having a significant impact.

For our gaming nodes, we rely on Hetzner in Germany as our infrastructure provider. These market conditions have affected them as well. There is less stock available, and new hardware is much more expensive. Today, setting up a new server can easily cost over €270, and often much more. Price adjustments have even been made to existing nodes.

We have made the difficult decision to stop adding any more capacity going forward in order to prevent imposing sudden pricing increases on our gaming servers.

There won't be any fresh stock coming online if we run out of space in Germany. Adding servers at costs that are not long-term viable cannot be justified. Additionally, this implies that there won't be any expansion to the US or other locations anytime soon. We are taking this action solely to maintain pricing stability for our existing users for as long as possible.

To be quite honest, I have no idea what the next move is at this time.

This isn't going to be a temporary issue. It would be naive to think that the AI-driven need for memory will go away on its own because it isn't going to slow down anytime soon. We have to figure out a sustainable course of action. That may mean altering hardware setups, a shift in priority toward web hosting, a future price adjustment, or something else entirely.

I won't, however, make an impulse decision that undermines the community we've established.

Thank you for supporting HEO Systems. It really does mean a lot. Every single customer counts, regardless of the size of our business becomes in the future. You’re not just a number to us. Please get in touch if you have any queries regarding your setup or worries about the future.

Hamza, Founder of HEO Systems