ok...this may sound like a noob question...and well...it is...
why do most companies out there charge monthly fees for additional harddrive space, memory, raiding...
is it becuase they use their own hardware for this so they want to keep incurring a good profit? I mean...it's only a 1 time application. If this is the case...are there any providers that would allow me to order my own hardware for them to put in a deticated server?
You don't "own" the dedicated server so no that wouldn't be an option. Not to mention the issues with hardware compatibility and properitary systems.
Monthly charges for things like Ram are pretty normal. Alot of places also do a one time fee which is good if you plan on keeping the server for a longer period. Some opt for the monthly if they only need it for a few months, It's more cost efficient sometimes that way.
Monthly fees are part of their business plan, and since they're all making money, it is obviously working. I don't see this changing unless server providers find some other way to make up the money lost if they stopped this practice.
The stock server generally do not make the datacenter a lot of money and a lot of their income comes from add-ons. They need to make money somewhere. The monthly cost would pay for replacement cost for as long as you have the server. Check with the datacenter, sometimes they do have one-time pricing for components upgrades even though they do not publicize that.