Hetzner vs AWS vs Traditional Hosting: Cutting Your Hosting Costs by 80%

Hosting is one of those expenses that most business owners set up once and never revisit. You chose a provider years ago, you pay the monthly bill, and it works. But hosting costs vary enormously between providers, and many businesses are paying five to ten times more than they need to for equivalent performance.

I’ve migrated client projects between hosting providers enough times to have a clear picture of what things actually cost versus what people are paying. The differences are startling.

The Three Categories of Hosting

Let’s define what we’re comparing.

Traditional Shared/Managed Hosting

Providers like SiteGround, Bluehost, GoDaddy, WP Engine, and Kinsta. These are the hosts that dominate Google search results for “web hosting” and spend heavily on affiliate marketing.

You pay a monthly fee and get a pre-configured environment. For WordPress hosts, you get WordPress pre-installed, automatic updates, and usually some level of support. The pricing typically starts low (promotional rates) and increases significantly on renewal.

AWS (Amazon Web Services)

The cloud computing giant. AWS offers everything from simple virtual servers (EC2) to managed databases, serverless computing, content delivery, and hundreds of other services. It’s what many large companies use, and it’s the default “serious” hosting option.

Pricing is usage-based and complex. You pay for compute time, bandwidth, storage, database queries, and dozens of other metrics. Understanding your actual bill requires a spreadsheet and patience.

Hetzner

A German hosting company that offers cloud servers, dedicated servers, and storage at prices that make other providers look expensive. Hetzner runs their own data centres in Germany and Finland, with additional locations expanding.

They’re less well-known in the UK and US markets because they don’t run aggressive affiliate programs, but they’re highly respected in the developer community for offering genuine value.

Real-World Cost Comparison

Let me compare the actual costs for three common scenarios.

Scenario 1: A Small Business WordPress Site

A standard WordPress site with moderate traffic — say, five thousand visitors per month.

Traditional managed WordPress hosting (WP Engine or Kinsta): Twenty-five to thirty-five pounds per month for their starter plans. That’s three hundred to four hundred twenty pounds per year.

AWS (Lightsail — their simplified offering): Three fifty to five US dollars per month for a small instance. Roughly forty to sixty pounds per year. But you’re managing the server yourself — installing WordPress, configuring security, handling updates.

Hetzner Cloud: A CX22 instance (2 vCPU, 4 GB RAM) costs about four euros per month. That’s roughly forty pounds per year. You get more server resources than either of the above options. Like AWS Lightsail, you manage the server yourself.

The savings: Switching from WP Engine to Hetzner saves approximately three hundred pounds per year — roughly an 80% reduction. The trade-off is that someone technical needs to set up and maintain the server.

Scenario 2: A Node.js Application (CMS, API, or SSR site)

Running a Payload CMS instance, a Medusa.js store, or a server-rendered SvelteKit application.

Traditional hosting (Platform as a Service like Railway or Render): Seven to twenty-five US dollars per month depending on resources. Convenient but limited.

AWS (EC2 or ECS): A t3.small instance costs roughly fifteen to twenty US dollars per month. Add a managed database (RDS) and you’re looking at thirty to fifty US dollars per month. Bandwidth costs extra.

Hetzner Cloud: A CX22 instance runs your application and database on the same server for about four euros per month. A CX32 (4 vCPU, 8 GB RAM) for heavier applications costs around eight euros per month. Add a managed database if you want (though running PostgreSQL on the same server works fine for most projects) and you’re still under fifteen euros per month.

The savings: Hetzner costs roughly a quarter to a fifth of the AWS equivalent for small to medium applications. For a project that would cost fifty US dollars per month on AWS, Hetzner delivers similar performance for ten to fifteen euros.

Scenario 3: Multiple Client Projects

This is where the differences become dramatic. If you’re a developer or agency hosting five to ten client projects, the costs multiply.

Traditional managed hosting: Five sites at thirty pounds each: a hundred fifty pounds per month.

AWS: Five small instances with databases: two hundred fifty to four hundred US dollars per month.

Hetzner: One or two servers running all five sites with proper containerisation: ten to twenty euros per month. Even with dedicated servers for better isolation, you’re looking at forty to sixty euros per month for a machine that could host twenty sites comfortably.

The savings: Hundreds of pounds per month, thousands per year.

Why Hetzner Is So Much Cheaper

This is the obvious question, and it deserves an honest answer.

They Own Their Data Centres

Hetzner owns and operates their own data centres in Germany and Finland. They don’t resell AWS or Google Cloud infrastructure like many “cloud” providers do. This eliminates the middleman markup.

They Don’t Spend on Marketing

Hetzner doesn’t run affiliate programs that pay bloggers thirty to a hundred pounds per referral. They don’t sponsor every podcast and YouTube channel. That marketing spend is built into the price of providers like Bluehost and SiteGround. Hetzner grows through word of mouth and reputation.

German Engineering Efficiency

This isn’t a stereotype — Hetzner runs extremely efficient operations. Their data centres are well-designed, their hardware procurement is smart, and they pass the savings to customers rather than padding margins.

They’re Not VC-Funded

Many hosting startups are burning venture capital to acquire customers, with plans to raise prices later. Hetzner has been profitable and self-sustaining since 1997. Their pricing reflects actual costs plus a reasonable margin, not a growth-at-all-costs strategy.

When AWS Makes Sense

Despite the cost premium, AWS is the right choice for certain situations.

You Need Specific AWS Services

AWS offers services that Hetzner simply doesn’t: managed machine learning infrastructure (SageMaker), serverless computing (Lambda), managed Kubernetes (EKS), global CDN with edge computing (CloudFront + Lambda@Edge), and dozens of other specialised services. If your application needs these, AWS is the obvious choice.

Enterprise Compliance Requirements

Some industries and enterprise clients require hosting on AWS, Azure, or Google Cloud for compliance reasons. If your client’s procurement team mandates a specific cloud provider, that’s not negotiable.

Global Multi-Region Deployment

If you need your application running in data centres across multiple continents with automatic failover, AWS’s global infrastructure is purpose-built for this. Hetzner’s geographical footprint is more limited.

You Have AWS Credits

AWS often provides free credits to startups and through various programs. If you have significant credits, using AWS is effectively free until they run out.

When Traditional Hosting Makes Sense

Zero Technical Expertise

If nobody on your team can manage a server — installing software, configuring firewalls, setting up SSL certificates, applying security updates — then managed hosting is worth the premium. You’re paying for someone else to handle the technical work.

WordPress-Specific Needs

Managed WordPress hosts like WP Engine and Kinsta offer WordPress-specific features: staging environments, automatic updates, WordPress-optimised caching, and WordPress-expert support. If you’re running WordPress and need this level of support, the premium is reasonable.

You Value Support

Traditional hosts generally offer better support for non-technical users. If you want to call someone when your site is down and have them fix it, that’s part of what you’re paying for.

How to Make the Switch

If you’ve decided that your current hosting is overpriced, here’s a practical migration approach.

For WordPress Sites

1. Set up a Hetzner Cloud server with Ubuntu and install a server management panel like RunCloud, Ploi, or even a manual LEMP stack if you’re comfortable
2. Install WordPress on the new server
3. Migrate your site using a plugin like All-in-One WP Migration or manually by copying files and database
4. Test thoroughly on the new server using a temporary URL or hosts file entry
5. Update your DNS to point to the new server
6. Monitor for a week to ensure everything works correctly
7. Cancel your old hosting once you’re confident

For Node.js Applications

1. Provision a Hetzner Cloud server with Ubuntu
2. Install Node.js, your database, and any other dependencies
3. Set up a reverse proxy (nginx or Caddy) for SSL and domain routing
4. Deploy your application using Git, Docker, or your preferred deployment method
5. Configure automated backups (Hetzner offers automatic server snapshots)
6. Set up monitoring (Uptime Robot, Hetrixtools, or similar)
7. Update DNS and go live

Using Docker for Multiple Sites

If you’re hosting multiple projects, Docker Compose makes it straightforward to run multiple applications on a single Hetzner server. Each application runs in its own container with isolated dependencies, and a reverse proxy (Traefik or nginx-proxy) routes traffic to the correct container based on the domain name.

This approach lets you host five, ten, or more sites on a single twenty-euro server, each with their own database, runtime, and configuration.

The Hidden Costs to Consider

Cheaper hosting doesn’t mean zero costs. Factor in these additional considerations.

Your Time

If you’re managing servers yourself, your time has value. Setting up a server takes a few hours. Ongoing maintenance (security updates, monitoring, troubleshooting) takes a few hours per month. If your hourly rate exceeds the savings, managed hosting might still be the better deal.

Backup and Disaster Recovery

Hetzner offers server snapshots and backup services, but you need to set them up. Make sure you have automated, off-site backups for critical data. Don’t rely solely on the hosting provider for backups.

Monitoring and Uptime

Managed hosts typically include uptime monitoring. With Hetzner, you’ll want to set up external monitoring that alerts you if your server goes down. Free tools like Uptime Robot cover this for up to fifty monitors.

Support

Hetzner’s support is competent but focused on infrastructure issues. They’ll help if the physical server has a problem, but they won’t debug your WordPress installation. If you need application-level support, factor in the cost of a developer or system administrator.

My Recommendation by Business Type

Freelancers and small agencies: Hetzner Cloud is the best value. The cost savings across multiple client projects are significant, and if you’re technical enough to build websites, you’re technical enough to manage a server.

Small businesses without a developer: Managed hosting (WP Engine, Kinsta, or Cloudflare Pages for static sites) is worth the premium for the peace of mind and support.

Startups and growing applications: Start with Hetzner or Railway/Render for simplicity, and move to AWS only when you need AWS-specific services or your scale demands it.

Enterprise: Use whatever your compliance and procurement teams require. Cost optimisation at enterprise scale is a separate discipline entirely.

Take Action

If you suspect you’re overpaying for hosting, add up your total annual hosting costs across all your websites. Then compare what you’d pay on Hetzner for equivalent resources. If the difference is significant, a migration might be one of the easiest ways to reduce your business expenses.

If you need help evaluating your hosting setup or migrating to a more cost-effective provider, get in touch. I can assess your current infrastructure, recommend the right hosting approach for your needs, and handle the migration so you don’t have to worry about downtime or data loss.