Cloud

From Azure to Hetzner: Why European Companies Are Switching in 2026

Azure to Hetzner

Feeling stuck with rising Azure bills, unpredictable performance, and complex licensing? You’re not the only one. Across Europe, a wave of companies — from SaaS startups to mid-sized enterprises—are making a major infrastructure shift: they’re leaving Microsoft Azure for Hetzner.

Why? The answer boils down to cost, control, and compliance.

This article digs deep into this trend, breaking down the key reasons behind the Azure-to-Hetzner migration wave, with real-world examples, pricing comparisons, technical challenges, and the tools companies are using to make it happen.

We’ve also gathered insights from developers and CTOs on forums like Hacker News and tech blogs who’ve lived through the transition. So whether you’re a cloud architect, DevOps lead, or tech-savvy founder, this guide will help you figure out if Hetzner is the right Azure alternative for your team in 2026.

The Cloud Cost Crisis: Azure’s Hidden Fees Explained

Let’s be honest — Azure pricing is a mess.

On paper, Microsoft offers competitive virtual machines, a robust PaaS ecosystem, and integrations galore. But once you start using their services at scale, the bill can become a financial black hole.

Here’s what many European companies are discovering:

1. Bandwidth Drain

Azure charges for every single outbound GB, often at €0.09–€0.13/GB. If you serve media-rich content or handle data replication between regions, these costs skyrocket fast. Some companies report that data transfer costs alone make up 20–30% of their monthly bill.

2. Overhead from Managed Services

Azure’s managed services (like Azure SQL, Azure AD, App Services) sound great… until you realize each of them has its own cost model, scaling tiers, and usage-based pricing. Once you stack even a few essential services, your infrastructure bill becomes a patchwork of microcharges.

3. Licensing Complexity

Microsoft bundles services into licensing packages that often feel like you’re paying for tools you don’t use. Additionally, many businesses discover that support tiers are tied to licensing commitments, which adds even more financial pressure.

4. Price Increases Over Time

Azure pricing has not remained static. Over the past few years, various regions saw changes in currency-based pricing, licensing adjustments, and bandwidth cost restructuring—leaving companies with ever-growing cloud costs despite no architectural changes.

Meet Hetzner: Europe’s High-Performance Cloud at a Fraction of the Price

Enter Hetzner Online, a German-based infrastructure provider that’s gaining serious traction across Europe for offering blazing-fast servers, reliable infrastructure, and transparent pricing.

Unlike hyperscalers, Hetzner doesn’t overpromise PaaS magic. It gives developers and ops teams the raw power and control they need — without the billing games.

Key Hetzner Features That Stand Out:

Hetzner's Standout Features
  • Flat-rate pricing with 20TB bandwidth included per instance
  • High-performance CPUs and NVMe storage
  • Cloud and bare-metal servers starting under €5/month
  • GDPR-compliant data centers in Germany and Finland
  • Full support for Terraform, Ansible, Docker, Kubernetes, and more
  • A no-frills, no-marketing platform that just works

It’s not for everyone. But for those who know how to run infrastructure, or are willing to learn — it’s a game changer.

Let’s see what this looks like in practice.

Case Study: WZ-IT’s Migration from Azure to Hetzner

WZ-IT, a European IT services provider, recently shared their public case study of moving from Microsoft Azure to Hetzner.

They faced a familiar situation:

  • High recurring Azure costs
  • Unused licensing overhead
  • Complexity in resource allocation
  • Limited control over performance

Their goal? Simplify the stack, reduce costs, and gain ownership of their infrastructure.

Here’s how they did it:

1. Infrastructure Planning

They mapped their Azure services to Hetzner Cloud equivalents using a mix of Terraform and Ansible. No proprietary lock-in, no dependency hell.

2. Containerization

Instead of using Azure’s App Services, they containerized workloads using Docker and deployed them to Hetzner Cloud instances. This made scaling and monitoring easier.

3. Migration Execution

  • Moved DNS to Hetzner DNS Console and Cloudflare
  • Set up custom firewalls using iptables
  • Self-hosted their backups and monitoring with Restic + Grafana

4. Result

“After migration, our infrastructure costs dropped by over 70% while maintaining performance and uptime. We finally feel like we’re in control.” — WZ-IT team

This story mirrors what dozens of European companies are realizing: Azure is powerful, but overkill for many workloads — and Hetzner gives them exactly what they need.

What Developers Are Saying: Hacker News Insights on Azure vs. Hetzner

If you want to know what the tech community really thinks, just check Hacker News. In one thread titled “Azure to Hetzner?”, developers and DevOps engineers shared brutally honest feedback on switching from hyperscalers like Azure to leaner options like Hetzner.

Here are some standout comments and takeaways:

💬 “Hetzner is 10x cheaper and performs better for 80% of workloads.”

Multiple users report massive savings after switching to Hetzner from Azure or AWS. Especially for small-to-midsize web apps, the performance difference is negligible—except the price is dramatically lower.

💬 “Azure nickel-and-dimes you for everything. Hetzner gives you control.”

One common complaint about Azure is its pricing complexity. Users are frustrated with being charged for every small add-on, from load balancers to DNS queries. In contrast, Hetzner offers flat pricing with no surprise billing.

💬 “Hetzner is simpler. That’s its superpower.”

While Azure shines with its expansive cloud ecosystem, many devs feel it’s bloated for their needs. Hetzner doesn’t pretend to do everything. Instead, it gives you fast virtual machines, simple networking, and powerful compute—and lets you build the rest.

💬 “Support is the tradeoff. You get what you pay for.”

Some users note that Hetzner’s support is slower or more “hands-off” compared to Microsoft. But many also say that once you understand how the platform works, you rarely need support at all—and the savings are worth the occasional hiccup.

Hetzner vs Azure: Side-by-Side Cloud Comparison Table (2026)

FeatureMicrosoft AzureHetzner Cloud
Compute Pricing (4vCPU / 16GB)~€120/month (variable)€23.75/month (fixed)
Bandwidth~€0.09–0.13/GB outbound20TB/month included
Data Center RegionsGlobal (US, EU, Asia, etc.)EU only (Germany & Finland)
GDPR ComplianceDepends on region & configNative, full EU compliance
Managed ServicesExtensive (RDS, Azure AD, etc.)Minimal
AutoscalingNativeManual or custom scripted
Infrastructure as CodeAzure ARM, TerraformTerraform + CLI
Support OptionsTiered support (paid plans)Basic ticket system
ComplexityHigh (PaaS-heavy)Low (IaaS-focused)
Best ForEnterprises, global-scale appsDevOps teams, SaaS, startups
Hetzner vs Azure: Side-by-Side Cloud Comparison Table (2026)

Bottom line?
If you’re a European startup, DevOps team, or SME running cost-sensitive workloads, Hetzner gives you 90% of what you need at 20% of the cost—without the cloud bloat.

The Key Reasons European Companies Are Migrating to Hetzner

The shift from Azure to Hetzner isn’t just about price — it’s about alignment with business values and operational needs. Here’s why the switch is so attractive, especially across the EU:

1. Cost Efficiency at Scale

Azure might make sense when you’re small and inside a Microsoft ecosystem. But once your usage grows, costs increase exponentially—especially with bandwidth-heavy or multi-region setups.

With Hetzner, pricing is flat, transparent, and predictable.

2. GDPR-First Compliance

Azure stores data across multiple global regions. For EU businesses, this can become a compliance nightmare unless you strictly enforce region locking.

Hetzner data centers are in Germany and Finland only—which means native GDPR compliance with no legal guesswork.

3. Developer Control Over Infrastructure

Azure abstracts away many operations with PaaS, but that also means less flexibility. At Hetzner, developers and DevOps teams get full access to:

  • VM-level provisioning
  • Private networking
  • Custom firewall rules
  • Any toolset they prefer (Docker, K3s, Nomad, etc.)

No vendor lock-in. No unnecessary abstraction. Just infrastructure that works.

4. Open-Source Tooling Friendly

Azure loves pushing proprietary services. Hetzner embraces open-source.

You can run:

  • Terraform-managed clusters
  • GitLab CI/CD runners
  • Docker Swarm or K3s for container orchestration
  • Prometheus/Grafana for monitoring
  • Custom backup solutions like Restic

It’s like building with LEGO, not IKEA furniture — you choose the parts.

Migration Strategy: How to Move from Azure to Hetzner Without Downtime

Migrating from a feature-rich platform like Azure to a leaner, infrastructure-focused cloud like Hetzner requires planning, tooling, and clean execution. While Hetzner doesn’t offer all the bells and whistles of Azure, it provides the building blocks — and with the right DevOps approach, you can replicate almost everything you need.

Here’s a step-by-step migration strategy tailored for DevOps teams, SaaS startups, and mid-size businesses running common Azure workloads:

1. Audit Your Azure Environment

Start by listing all the services you rely on in Azure:

  • Web apps (App Service)
  • Databases (Azure SQL, Cosmos DB)
  • Storage (Blob, File Storage)
  • Identity (Azure AD)
  • Networking (Load balancers, DNS, VPNs)
  • Monitoring and security tools

Ask: What’s critical, and what’s replaceable?

2. Map Azure Services to Hetzner Equivalents

Azure is PaaS-heavy. Hetzner is IaaS-first. That means you’ll be self-managing more, but you gain control and customization.

Azure ServiceHetzner Alternative
Azure App ServiceDocker containers or Nginx on Ubuntu VMs
Azure SQLSelf-hosted PostgreSQL/MySQL on Hetzner VMs
Blob StorageHetzner Storage Boxes or S3-compatible MinIO
Azure ADKeycloak or other open-source IAM tools
Azure MonitorPrometheus + Grafana
Azure FirewallUFW / iptables, managed with Ansible

3. Prepare Your Hetzner Environment

  • Provision servers via the Cloud Console or Terraform
  • Create private networking between VMs
  • Deploy firewalls and security groups
  • Set up DNS zones, or point existing DNS to Hetzner IPs
  • Install monitoring agents/log collectors early

4. Containerize Your Workloads

If you haven’t already moved to containers on Azure, now is the time. Most apps can be easily Dockerized and deployed to Hetzner instances.

  • Use Docker Compose or Kubernetes (K3s or k3sup) for orchestration
  • Build CI/CD pipelines using GitHub Actions or self-hosted GitLab runners on Hetzner

5. Migrate Data Safely

  • Use pg_dump / mysqldump or pg_basebackup for database exports
  • Rsync or rclone for large file stores
  • Always test restores in staging first
  • For live apps, consider replication and cutover with zero downtime

6. Configure Monitoring & Backups

  • Deploy Prometheus for infrastructure metrics
  • Add Grafana for dashboards and alerts
  • Automate backups with Restic, Borg, or Velero
  • Store backups in Hetzner Storage Boxes or external S3-compatible solutions

7. Cutover and Test

  • Point DNS records to Hetzner instances
  • Run full system tests (login, DB queries, file uploads, etc.)
  • Monitor closely for 24–72 hours
  • Decommission Azure services once stable

Recommended Tools:

  • Terraform – Automate infrastructure provisioning
  • Ansible – Configure servers with repeatable playbooks
  • Docker – Containerize and deploy apps easily
  • Cloudflare – Manage DNS and security
  • Uptime Kuma – Self-hosted uptime monitoring

Challenges When Leaving Azure (And How to Solve Them)

Leaving Azure’s comfy ecosystem isn’t without its friction. Here are common challenges and how to overcome them:

Challenge 1: No Managed Database Service

Solution:
Use Docker or systemd-based Postgres/MySQL installations. Pair with automated backup tools (Restic, pgBackRest) and replication strategies.

Challenge 2: No Serverless or Event-Driven Functions

Solution:
Use lightweight containers for background jobs, or explore open-source alternatives like OpenFaaS or Temporal.io.

Challenge 3: No Azure AD for Identity

Solution:
Use Keycloak, Authelia, or OAuth2 Proxy. Integrate with your frontend/backend apps. For enterprise IAM, consider Okta or Auth0 externally.

Challenge 4: No Built-in Autoscaling

Solution:
Use Prometheus metrics + custom scripts or 3rd-party tooling (e.g., Cluster Autoscaler for K3s) to build your own autoscaler logic. Hetzner now supports VM snapshots and quick provisioning.

Who Should NOT Migrate from Azure to Hetzner?

To be clear — Hetzner isn’t for everyone.

You should stay on Azure (or consider another hyperscaler) if:

  • You rely heavily on managed services and don’t have time to self-host alternatives
  • Your business depends on serverless, AI/ML, or advanced networking tools
  • You need global region diversity (e.g. US, Asia, South America)
  • Your team lacks the DevOps expertise to manage your own infrastructure stack

When Hetzner Is a Perfect Azure Alternative

  • You have a DevOps-friendly team with Terraform/Ansible skills
  • You’re a European SaaS startup aiming to cut infra costs by 50–80%
  • You want full control over data, networking, and performance
  • You don’t need a dozen PaaS tools — just fast VMs and reliable networking
  • You care about GDPR, data sovereignty, and EU-first cloud strategy

Final Thoughts: Should You Leave Azure for Hetzner in 2026?

If your infrastructure costs are climbing.
If your app doesn’t need all of Azure’s managed services.
If your team can self-manage using Terraform, Docker, or Ansible.

Then yes — now is the time to test Hetzner.

It’s not just about saving money. It’s about freedom from vendor lock-in, predictable pricing, and having full control of your infrastructure again.

You don’t have to do a big bang migration. Start with a test workload. See the performance. Run the numbers. Then decide.

You’ll probably wish you switched sooner — like many others already have.

Contact Gart Solutions for migration to Hetzner.

FAQ

Is Hetzner really that much cheaper than Azure?

Yes. Hetzner’s equivalent VMs can be 4–6x cheaper, and 20TB of bandwidth is included per server. Azure charges heavily for outbound traffic.

Is Hetzner compliant with GDPR?

Yes. Hetzner is based in Germany and all infrastructure is hosted within the EU. No third-party data transfer required.

What is the biggest difference between Azure and Hetzner?

Azure is a managed service platform; Hetzner is an infrastructure provider. You get more control, but need to build your stack manually.

How long does a migration from Azure to Hetzner take?

Most teams report 1–3 weeks for small to medium workloads. Larger systems might take longer depending on architecture and automation readiness.

What are some open-source tools I can use on Hetzner?

Terraform (infra-as-code), Ansible (server config), Docker / K3s (containers), Keycloak (identity), Prometheus / Grafana (monitoring), Restic / Borg (backups)
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