Microsoft Azure is the cloud provider most deeply embedded in DACH companies – through Microsoft 365, Active Directory, and Enterprise Agreements. The temptation is obvious: just host the infrastructure "with Microsoft" too. But Azure belongs to Microsoft Corporation, Redmond (US) – and is therefore subject to the CLOUD Act, even in the Frankfurt region. Hetzner is a German GmbH, fully under EU law. This comparison breaks down cost, performance, services, and compliance in detail – with concrete figures from the official Azure Retail Prices API.
Cost comparison: Hetzner vs. Azure
Azure and AWS sit at a similar price level – both are a multiple of Hetzner. If you already have an Enterprise Agreement, you get discounts – but even with a 40% EA discount, Azure stays considerably more expensive.
Compute (compared by RAM tier)
Hetzner shared-vCPU instances (CX series) share physical CPUs. Azure's B series is likewise burstable (shared resources), while the Dsv5 series delivers dedicated, consistent CPU performance. The comparison shows both vCPU counts transparently: Hetzner Cloud: current price list Azure Retail Prices API: official pricing data
| RAM tier | Hetzner (shared vCPU) | Azure (on-demand) | Factor |
|---|---|---|---|
| 4 GB | CX23: 2 vCPU – €5.49/month | B2s: 2 vCPU – ~€31/month | 5.6x |
| 8 GB | CX33: 4 vCPU – €8.49/month | D2s v5: 2 vCPU – ~€74/month | 8.7x |
| 16 GB | CX43: 8 vCPU – €15.99/month | D4s v5: 4 vCPU – ~€148/month | 9.2x |
| 32 GB | CX53: 16 vCPU – €29.49/month | D8s v5: 8 vCPU – ~€296/month | 10.0x |
| 32 GB (dedicated) | CCX33: 8 vCPU – €138.49/month | D8s v5: 8 vCPU – ~€296/month | 2.1x |
The fairest comparison is the last row: Hetzner CCX33 with dedicated vCPUs against Azure D8s v5 – same core count, same amount of RAM. Factor 2.1x. The prices are almost identical to AWS – the two largest hyperscalers compete primarily for enterprise customers, not for the lowest price.
Storage and traffic
| Resource | Hetzner | Azure |
|---|---|---|
| Block storage (SSD) | €0.057/GB/month | Standard SSD: ~€0.066/GB/month |
| Premium SSD | – | Premium SSD: ~€0.137/GB/month |
| Included traffic | 20 TB/month (EU locations) | 100 GB/month (free) |
| Egress traffic | €1/TB (above the included allowance) |
Worked example: typical SaaS workload
A mid-market SaaS product with 2 app servers, 1 database server, 500 GB of storage, and 5 TB of monthly egress traffic:
| Line item | Hetzner | Azure |
|---|---|---|
| 2x app server (16 GB RAM) | 2× CX43: €31.98 | 2× D4s v5: €296.00 |
| 1x database server (16 GB RAM) | 1× CCX23 (self-hosted PostgreSQL): €85.99 | Azure DB for PostgreSQL (4 vCPU): ~€272.00 |
| 500 GB block storage | €28.60 | Standard SSD: ~€33.00 |
| 5 TB egress traffic | €0.00 (within the included allowance) | ~€383.00 |
| Total monthly cost | ~€147 | ~€984 |
| Annual cost | ~€1,759 | ~€11,808 |
That works out to a factor of ~7x – driven by Azure's egress costs and pricier instances.
Performance benchmarks
Azure delivers solid compute performance and strong networking infrastructure. For pure compute workloads in the EU, Hetzner offers comparable performance at a fraction of the cost.
| Metric | Hetzner | Azure |
|---|---|---|
| Network latency (intra-DC) | Very good (~0.3 ms) | Very good (~0.2 ms) |
| Disk I/O (SSD) | Good (Hetzner local NVMe) | Variable (network-based Managed Disks) |
| CPU consistency | High (dedicated CCX series) | High (Dsv5 series) |
| Network throughput | Up to 10 Gbit/s | Up to 30 Gbit/s (expensive instances) |
Sovereignty and compliance
The structural difference is the same as with AWS and GCP – Microsoft is a US company. The legal details on the CLOUD Act and the risk to EU data apply here just as much:
| Kriterium | Hetzner | Azure |
|---|---|---|
| Owner | Hetzner Online GmbH, Gunzenhausen (DE) | Microsoft Corporation, Redmond (US) |
| CLOUD Act exposure | None – not under US jurisdiction | Full – US parent company |
| GDPR compliance | Native – EU law only | Legal conflicts with US law |
| BSI C5 attestation | Yes – Type 2 (since March 2026) | Yes (SOC 2 Type II + C5 combined) |
| ISO 27001 | Yes | Yes (+ ISO 27017, 27018, 27701) |
| EU data centers | Falkenstein, Nuremberg, Helsinki | Frankfurt, Berlin, Zurich, and others (10+ EU regions) |
| Data centers worldwide | 6 locations, 3 continents | 60+ regions, global |
| Sovereign cloud option | Native – German GmbH | Microsoft Cloud for Sovereignty (surcharge) |
| Data processing | EU law only applies | US law can override GDPR |
Microsoft's sovereign-cloud answer
With Microsoft Cloud for Sovereignty, Microsoft offers a solution for regulated industries: an EU Data Boundary, Confidential Computing, and customer-managed encryption keys. Microsoft Cloud for Sovereignty
It sounds promising – but it comes with limitations:
- Surcharges for sovereignty features and Confidential Computing
- Limited service portfolio – not every Azure service supports Confidential Computing
- More complex configuration – sovereignty controls require additional architecture decisions
- Legally untested – whether the EU Data Boundary can actually block a CLOUD Act order is legally unresolved
- A failed predecessor: the earlier "Microsoft Cloud Deutschland" (operated by T-Systems as a data trustee) was discontinued in 2021 – Microsoft has abandoned that approach
For most DACH SMEs, Hetzner is the simpler and cheaper route to EU data sovereignty – without sovereign-cloud surcharges and without legal uncertainty.
Where Azure is the better choice
A fair comparison has to acknowledge where Azure has genuine advantages:
- Enterprise integration: Azure Active Directory (Entra ID), Microsoft 365, Dynamics 365, Power Platform – no other cloud provider offers this depth of Microsoft integration. For companies with 500+ Microsoft licenses, this is a real productivity advantage.
- Azure OpenAI Service: a leading managed cloud path to OpenAI models (GPT-4, DALL-E) with EU data zone options for data processing. For AI workloads built on OpenAI models, Azure is an established and deeply integrated choice – though since 2026 it is no longer the only hyperscaler route (OpenAI models are now available through other providers as well).
- Hybrid cloud (Azure Arc): Azure Arc lets you manage on-prem servers, edge devices, and multi-cloud resources from a single control plane. For companies with existing on-prem infrastructure, that is a strong argument.
- Managed databases: Azure SQL, Cosmos DB, Azure Database for PostgreSQL – fully managed databases with automatic failover. Hetzner has no managed-database offerings.
- Azure Kubernetes Service (AKS): managed Kubernetes with deep Azure integration, Virtual Nodes, and KEDA autoscaling. Hetzner offers basic managed K8s, but without this depth.
- Enterprise support and SLAs: 99.95–99.99% availability with Availability Zones, 24/7 support with 15-minute response times (Unified Support). Hetzner support is solid, but not at enterprise level.
- Global footprint: 60+ regions worldwide – the largest count of any cloud provider. Azure: global infrastructure
Where Hetzner is the better choice
- Price/performance: roughly 2–10x cheaper depending on the configuration – even with Azure Reserved Instances.
- Predictable costs: no egress-pricing shock. 20 TB of traffic included, then €1/TB instead of ~€77/TB.
- EU data sovereignty: no CLOUD Act, no FISA 702, no US parent company. Structurally GDPR-compliant – without expensive sovereign-cloud features.
- Simplicity: fewer services, but the essential ones (compute, storage, load balancer, DNS, firewall) work reliably and are configured in minutes.
- Transparent billing: flat monthly prices instead of usage-based billing with EA discounts, Reserved Instances, and dozens of cost dimensions.
- No vendor lock-in: Hetzner relies on standard APIs and open protocols. With Azure, Enterprise Agreements, Entra ID integration, and Dynamics 365 can create deep organizational lock-in. Hetzner Cloud: pricing and features
Which provider, and when?
Choose Hetzner if:
- GDPR compliance and data sovereignty are business-critical
- the budget is limited and predictable costs matter more than a broad range of managed services
- the tech stack is built on proven open-source tools (PostgreSQL, Redis, Node.js, Go)
- the target audience is primarily in the DACH region / EU
- you don't need deep Microsoft 365 integration
Choose Azure if:
- the company is already deeply invested in the Microsoft ecosystem (Microsoft 365, Entra ID, Dynamics 365)
- Azure OpenAI Service is a core component for AI/ML workloads
- hybrid-cloud scenarios with Azure Arc need to bring in on-prem servers
- global scale across 60+ regions is required
- US law is not a compliance issue (e.g. US customers, no EU personal data)
The reality for most DACH SMEs: they need compute, a database, storage, and good support – not an Enterprise Agreement with 200+ Azure services. For 95% of mid-market SaaS workloads, Hetzner is the economically and regulatorily better choice. Also compare the alternatives in the Hetzner vs. AWS comparison and the Hetzner vs. GCP comparison.
In a free initial consultation we analyze your current Azure infrastructure and calculate the savings potential. We deliver the full migration and hardening to EU-sovereign Hetzner infrastructure at a fixed price of €36,000 – with a working app as the outcome, not just a migration plan.
Frequently asked questions
How much cheaper is Hetzner than Azure?
Is Azure Germany subject to the CLOUD Act?
What is Microsoft Cloud for Sovereignty?
When is Azure still the better choice?
Does Hetzner offer managed databases?
Can AnvilStack help with an Azure migration?
Sources
- Hetzner Cloud: current price list (after the price adjustment of 15 June 2026)
- Azure Retail Prices API: official pricing data (D2s v5, D4s v5, D8s v5, B2s – Germany West Central)
- Azure: Bandwidth / Egress pricing
- Azure: Managed Disks pricing – Standard SSD / Premium SSD
- Hetzner: Block Storage / Cloud Volumes
- Hetzner: billing FAQ – included traffic allowance and overage costs
- Hetzner: data privacy FAQ – GDPR and data processing
- Hetzner: BSI C5 attestation Type 2 (March 2026)
- Microsoft: BSI C5 compliance – Azure (SOC 2 Type II + C5 + CSA STAR)
- Microsoft Cloud for Sovereignty
- Azure: global infrastructure – 60+ regions
- BSI C5: Cloud Computing Compliance Criteria Catalogue