Remember consistency is what lowers prices. Whats easier, throw 100 servers on racks, hook up your software that sets everything up and takes care of billing, or dealing with 100 special cases each who needs to ship a different kind of server each takes a different amount of power, etc.
Jordan hit the nail on the head. Colocation is a lot more complicated and risky for the host. Dedicated servers can be installed in volume and the resource requirements are a known quantity.
The other factor is usually bandwidth. Colocation customers tend to use all or most of the bandwidth that they pay for, whereas dedicated server customers tend not to use anywhere close to what they are given.
I'm gathering info for getting a new dedicated server, planning on using my own colocated hardware, but still looking at what's available in dedicated servers at the same time.
There are lot's of dedicated servers being offered at prices lower than 1U colocated rackspace. How's that possible, what am I missing?
the dedicated company is not paying for 1u - they have a large builk contract on space that allows them to have the space and power much cheaper and then they have servers that have been in production over 3 years so they are fully capitalized so they view them as no cost assets.
49 Euros per month
2000GB at 100mbps(*)
Intel® Core™ i7-920 Quadcore
2 x 750 GB SATA-II HDD (Software-RAID 1)
(*)"Traffic Usage is for free. We will restrict the connection speed to 10 MBit/s if more than 2000 GB/month are exceeded. Optional, a permanent 100 MBit/s-bandwidth will be charged 14,90 € (incl. VAT) per additional TB."
Remember that dedicated servers can be towers on a breadrack and the actual cost to host per server is probably only around $10 per month (depending on scale). Server might cost about $500 to buy. Data is pooled which reduces per unit cost. A 1RU is the most expensive form of colocation as you are at the low usage end of the scale. All in all a matter of economies of scale.
Hope that makes sense...hard to explain than I thought
Yes Hetzner's servers are tower-based. Also I am sure their high automation allows them to have less techs on the datacenter than other datacenters with similar size. It's sad that most european datacenters don't have this kind of automation.
It depends on how many servers you have, Usually with co-location the more servers you have (and only in the long run) you will save a massive amount. Also collocation is great for those who need the high amount of bandwidth.