How are companies like Kimsufi able to offer low-spec cheap dedicated servers?
I see usual dedicated servers for $50-$60 / mo, and understandably because they have high-end specs like > 32 GB RAM.
I want to know how cheap dedicated servers work, and if there are "hidden costs" which will become a pain later. I also have seen only a handful of providers for these, which makes me question it more.
I want to understand how they are working. I don't see a point in them not maxing out specs* and selling a higher-end dedicated server if their board supports it and it takes same rack space. Or is it that they're just using old hardware which they haven't phased out yet? Or is it that they somehow buy new hardware but it's weak as well as cheap?
I see advantage of dedicated servers in not having to share CPU with other random things running on other people's VPS, so I'm okay with low-end dedicated servers. But I just want to understand how they work.
** to some optimum, which certainly isn't 1 core and 2 GB DDR3, as KS-1 is