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It's cheaper when you own it all
Manual intervention is complx; now imagine you have 100 consistent hardware, with spares, pre-cabled, connected, automated OS install possible. Now imagine you have 100 different servers, different chassis, brand, no spares, labels on everything, labels on incoming spare parts shipping, you don't know which port to plug it in, back and forth suport ticket waste time .
It should be obvious that they charge more for colo.
I mean, what doesn't make sense?
Colocation is riskier/less predictable, there might be early 2000s hardware and each config is different so it's more time to deal with, while dedis are one set product that is less riskier/more predictable.
It depends on what specs you are colocating. If you colo a server with 12 x 16 TB for €60/mo now try to do the same dedicated.
I think colo is only interesting if you need a lot of storage.
You're mostly paying for the support like the others mentioned. But what I never understood was why you get less traffic with colocation. I always noticed that you have to pay significantly more for traffic with colocation.
@skorupion
As someone who does colo. It really depends on the hardware it self.
Dedi - The costs of the machine can be split out over time and most resources are never truly "dedicated" like networking.
As far as colo the provider has/should to truly set aside those resources like power, rack, connection.
Correct because with one dedi you can only do so much in terms of traffic/power etc.
But what if you colo a 4U blade chassis with 12 blades and you sell VPS to 1000 people.
I was looking at Serverius, if you colo full rack you almost get no bandwidth (95 percentile crap) while if you colo 1U you get unmetered/fup 10 gbps.
Agreed.
I suppose the idea is that if you're able to sell VPS to 1000 people or need that much resources in the first place, you would be making enough dough to pay for their bandwidth.
The concept is simple. To help understand here are some **basic **scenarios. It goes much deeper than this, but let's roll with the basics.
If you have the hardware you are either leasing it, or you outright own it. It's important to note that we're not talking about generic resellers where they order hardware from other providers as needed. There's nothing wrong with this, and at times this can be an advantage in my opinion over the two above. Especially if you know how to move products.
Back to leasing, if you lease it, you commit to x QTY, usually in the 100s and have a monthly bill regardless of what is in use for x amount of years from these leasing companies. On top of that, you're going to have bandwidth, power, and rackspace cost in most cases. So you're in the hole even further when inventory remains unsold. So you may see providers selling at near lease cost just to move product to help stop their bleeding.
If you own the hardware, you still have an operating cost: For example power, bandwidth, and rackspace. Most of the time, providers don't own the facility and are too small to have "metered power" and often times are committing to everything upfront. So having unused equipment powered off, usually doesn't translate less monthly cost. So these providers again are left trying to push unsold inventory to help recover CAPEX and OPEX while trying to grow their business, and still absorbing typical business churn.
The goal with outright owning hardware is to as fast as you can recover CAPEX, that way you can begin profiting. Providers generally set a return on investment in what they feel is best for them, this can range from 3-24 months if not more from what I've seen through the years. Businesses have churn, so at times prior to obtaining a full ROI, you're left with equipment that needs to sold again to help cover CAPEX. Let alone any modifications the next customer desired, thus perhaps yet again increasing CAPEX. Not to mention OPEX. Let alone staff cost in every situation you imagine.
It's all a game at the end of the day. Colo, is quite simple. You're going to pay for power, bandwidth and IPs if needed upfront. Providers are interested in terms, commitments, and perhaps ramps depending on your anticipated business growth. Providers are interested in making $200-500 generally per cab, and have OPEX, such as A/C maintenance, UPS maintenance, building lease, staff, and much more. This is oftentimes considered more when selling colocation vs dedicated, as the goal is to have recovered your CAPEX, and simply turn a profit while being able to maintain business OPEX. Bare metal is extremely profitable, whereas colocation isn't. So providers when done right promote servers at an attractive price point over colocation, in addition, to quickly growing their client base this way.
Hope this helps.
Depends if you sell at $10/yr each on let :P
By the way, if you're thinking about going with a single server colo, vs. a dedicated server please read: https://blog.racknerd.com/dedicated-servers-vs-colocation-which-one-is-right-for-you/
I actually read it and makes some sense now, btw do you do custom (config) deals on VPS's
I do. PM me for desired requirements.
Colo has its place and definitely when your looking for high capacity.
Colo has its place and definitely when your looking for high capacity.
PM'd
I place 10 dedicated Servers on 5U. Or even 12 in 3U .
Blade Systems.
Now you probably want to Colocate a 1U Rack Server. 1 Server in 1U.
Plus having many Racks, bandwidth etc etc get more discount in the DC and suppliers
Why does it not make sense?
I'm talking about 1 server
1 Server in colocation in general makes very little sense cost wise vs a Dedicated Server agreed, colocation will almost definitely get cheaper on a "per server" basis the more space you rent and the more you get out of that space.
Unless you have a very specific requirement set for certain hardware or require a costly server that long term will be cheaper with colo/outright owning the hardware, it's quite rare that colocation will work out better off in the short term - Long term, probably, but long term would probably be 3-4 years+
Kinda beg to differ.
You can colo an atom box with 4x 16tb drives(or more) for $75/month. Where can you get that kind of storage as a dedi?
All depends on setup.
Hence the “unless you have a very specific requirement set for certain hardware” part of my post.
For 4x16TB, you're probably better off going with hetzner unless you need a different location. It's like $77/month without vat and you have no upfront costs.
If you need way more storage than that, I actually suspect it might not be that worth it, because traffic costs are usually expensive with colocation. If you need something like 10x16 TB, unless its all cold storage, you're gonna have to pay for the traffic anyway. Unmetered probably (?) wouldn't work.
That was actually including 32TB worth of traffic.
And show me a screenshot of where you can get 64TB of storage for $77/month.
Yes, Location plays a big part of it... Like for myself (personally) would be better off getting storage here in America over Germany.
It seems to be on pre-order now, likely because of covid. You were able to order them a while back. Also it isn't the usual fair share or 100 Mbps guaranteed bandwidth kinda thing you get with colocation. Interestingly, hetzner's 1/3 rack gives you 2 TB traffic.
So your still paying more then for the hetzner option.
All I'm getting at is weight out the options.
Also take in account what you are hosting as we have seen from the big players taking down other sites.
We do
We have a variety of options, competitive pricing, and responsive/awesome support. Send me an email [email protected]
Sorry to disturb the "OPEX, CAPEX etc." ("it's difficult and complex!") party and spilling the boringly uncool beans:
Which leads to
Colo case: asking for small sub units of what they tick in -> rack price div. 10 (plus or minus) rather than rack price div 40.
Provider case: ca. the price of their basic unit which typically is about the price of a dedi or a bit higher. Why? Simple. They certainly are not willing to lose income. From their perspective asking for 1 or 2 HU colo roughly translates to "all the work, IPs, traffic etc but not the income of a system, except for the hardware itself -> not attractive". (Keep in mind that the hardware costs usually are ridiculously low).
What we, the potential 1 or 2 HU renters would need is someone who to the best of my knowledge hardly exists, someone who buys racks and bandwidth and has IPs and who makes a living/profit from the (quite large) space (and margin) between 40 HU and ca. 30 x 1 and 2 HU.
One reason for those animals being very rare is that the difference between that and a provider basically is hardware (dirt cheap) and support (usually not at all cheap).
Just so you guys are aware, OP's budget is 10/mo.
At least according to his post history.
I have read all of this and still do not understand. You talk about different hw, traffic, size, support, etc. But what if dedi-server and colo-server are the same?
I even went so far as to ask provider what servers they use (some Proliants 1U, 1/2 depth), and was ready to buy one from those they had on stock and keep it colocated there without any change to hw. No support, no extra services. The only difference I would be legally owner of the server. And yet still price for colocation was ~50% higher than renting the very same dedicated server...
The ultimate difference is internal and external.
You charge more for external stuff.
A very extreme example would be -
Your family members get to live in your house for free. If a stranger moves into your house, he will have to pay rent, should you decide to let him live.
Yes it is cheaper in alot of cases if you want to collocate old sever with 2 drives...
No if you want something specialized and have the right chassis.. (a lot of cores or a lot of drives or even a lot of NVMes) 10 Gbps internal network between servers will literally cost you nothing (the price of 3 network cards for 3 serversif they do not have such )..... Where if there is such with dedi provider it costs more than collocation itself