What your dumb ass doesn't realize is that for a dedicated server provider to make money, they need to break even on their hardware within five months. Why? Because they know that in 12 months you're going to be able to get a faster server for the same price, and they don't want to be stuck peddling old shit to new customers.
So, if a server costs them say $800 to build (they have to pay for someones time also remember), then they are going to rent it for ~$160/mo.
Want another HDD? Lets say the raw cost is $40, don't forget to add $40 in labor cost, since NOC staff can't be responding to calls or emails while they plugin and test HDD's. So that is $80 / 5 = $16, round up to $20.
Don't forget servers also have power and storage costs. Your average (cheap) server draws around 200watt. (200 watt * (30 days x 24 hours)) / 1000 * 17c (kwh) = ~$25/mo in power cost, then you need to figure a rack costs around $800/mo, and with ~20 servers in it that is $40 per server.
Lets be nice and just say a server costs $60/mo in power and storage. Our original $800 server will cost us $720 to run the first year, for a first year total of $1,520. Your $160/mo brings in $1,920 in the same year, for a total profit of $400. Don't forget income tax, 24 hour employee support costs, insurance, etc...
So STFU retard.
It sounds like you need a better business model, because all i saw was bitching. From what you said it sounds like you buy a server, make me pay for it, then throw it away (no value), and then buy new ones because no one will ever use the server again and you can't sell it.
What you left out in your insults and grips about your business is that once the server is paid for you can sell it for at least half the cost to build it. Yes tech moves fast but you don't need the latest and greatest to run a simple html server. It it was good enough to run high end resource heavy site then they it will be able to do the same thing next year. Java, html, php do not move as fast as high end games. It will not be top of the line but its not useless.
Which brings me to another thing, you have a server paid off by some idiot renting it for your crazy prices. If you didn't just cash out you still have a server that could be sold at a discounted rate, a hybrid plan, or even some sort of shared hosting. Don't even try it with your crying that it will be worthless to you in one year. I expect any good business man could get 2-3yrs out of a server and even then still sell it on ebay or CL.
Also if you started with servers, you would have to sell one of them to put in the new one. You at least got $100-200 bucks to invest into the new server if not more. Who here has seen P4 servers on CL sell for $100? Because I have.
If everyone only wanted the most high end, newest server there would not be so many companies offering different options. I have seen dedicated mac-minis, I have seen dedicated 1.2Ghz ATOM servers (wtf), you really think next year someone is not going to pay to have a i7 in their machine.
Clearly your vision is to closed minded for you to find better ways to make your company more profitable than ripping your customers off.
And for everyone here saying how much colo would cost, I have already researched the costs involved. It basically comes out to $160-200 for colo, yes its unmanged you will have to hire someone for that. But its your box! If you want 16GB of ram in the thing then you can do it. How much would a provider charge your for 16gb of ram? Do you want a RAID? or SSD fuck it you can do it. The initial cost to you will be 1-2k but the same tech from a host would be 500+/MO. Pay yourself off in 5months not them.
Wiredtree gave me a great deal since I was already a customer on my dedi, so ill stick with that for now. But I am already making a shopping list for my new dedi box.
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