Is there a scam in cheap dedicated hosting?

Question

Network administration

There are different options SoYouStart, online.net, kimsufi
All of them, of course, come down to options in data centers in France and Canada.
And I have a question, is there a catch? How do they manage to offer such low prices for dedicated servers?
For example www.online.net/en/dedicated-server/dedibox-xc
I understand that this is a small blade in a big block. But all the same, 8 cores, 8 gigabytes of RAM, for 16 euros without tax. Let's say the operating expenses are 6 euros, then there is 10 euros per month left to pay for this blade. How many years will it pay off?

Answer 1

The most important reason for the emergence of such companies is the stability of operations in Europe.
They have a yield of 10% and a payback period of initial investments in a business of 5-10 years - more than OK (well, for a big business, it’s not very good with a small one either).
Servers are leased / credited, then they are sold (which, again, is unrealistic in Russia. We even give out obsolete hardware for free - a huge problem, it's easier to throw them away).
The payback period for a piece of iron is six months for all of them on average. Maybe a year. Consider the huge discounts that these three giants give on iron. And even if the piece of iron did not pay off, it will be sold at half price / handed over at a discount from the auction / something else will be done.
Everything is as automated as possible. No one gives out the server by hand - they just press the button in the billing (and then they don’t press it, probably).
The system is set automatically.
Servers are put into racks once a day, a week, a month by a pack of specially trained people on outsourcing under a contract. The same hetzner has a very cheap network infrastructure - they almost never rent channels, everyone wants to feast with them anyway. Electricity is cheaper.
Support works according to strict instructions (if you want a web server to be raised - pay, if you want to see what's wrong with your OS - pay. If you don't want to pay a hoster - admin yourself or hire an admin) - which, by the way, is good, because support is coming and changes your hardware, instead of talking to blondes for an hour about how to upload a file via ftp. Construction is cheaper. Renting a building is cheaper. Taxes are less. No one extorts stupid licenses for bribes. Loans - at 1-2%, 5% - this is already a robbery-overdraft. In general, I advise you to read babkin-k.livejournal.com/182898.html
Well, the answer to the question is that there is no deceit or trick, I have been with hetzner for 5 years already - I am happy as an elephant. The quality of their services, from my point of view, is much better than that of any Russian hoster in practice (it is important for me that the network and electricity do not fall, and that, according to the letter, burned iron is changed in 20 minutes, and not to brainwash someone over phone out of boredom).

Answer 2

zipo is not cheating, the low price is achieved by saving on everything possible, and first of all, this is saving on the level of service and quality of support that the client can receive for free.
Hence often:
Before problems arise, many customers of Hetzner, OVH and others who buy the cheapest configurations are simply happy with the savings. :)

Answer 3

Loan 0-5% per year or leasing
+
Business with a profit of more than 5% is considered successful
+
Stability
=
Availability of similar services in the civilized world

Answer 4

What difference does it make to you how they make money?
I have servers both in SoYouStart and in online.net and in kimsufi
The only thing that is bad is that the support does not react very quickly.
Somehow my online.net server crashed. So it was a two week rewrite with dumb Indians. Who could not understand that the server does not ping and it cannot be restarted by remote. (the processor stupidly burned out)
There are no complaints about SoYouStart and kimsufi.

Answer 5

There, the atom is shit, the processor, the
memory now costs a penny.
In general, automation played a big role and the almost complete absence of a support
, in addition, the equipment is given on a very good lease.