All over the forum I hear that colo hosting is much more expensive than renting dedicated servers and I can’t see why.
Hardware example I can buy off Ebay for $2050
AMD EPYC 7402+Supermicro H11SSL-i motherboard $999
CSE-813MFTQC-350CB2 Chasis – $400
128GB DDR4 2666MHz – $450
2x 1TB NVMe $200
Example colo host Psychz, Chicago (first cheap one I could find in colo section):
Full Locking Cabinet
42RU Rack Space Colocation
30A / 208V Power Circuit (4kW Usable Power)
10Gbps Unmetered DEDICATED BANDWIDTH
/26 Private VLAN (61 Usable IPs)
40Gbps DDoS-Shield On-Premise Mitigation
Anti-DDoS Monitoring Panel
24/7 On-Site Support Staff
Its my understanding that I could run about 20 of the above configs at full power with that colo hosting offer. If I add 4 remote hand hours a month at $50 that would be $1599p/m, $19,188p/y.
Total approx. expenses after year 1 (colo + 20x servers with 5x spare parts) $69,188 (missing some small cost things like cabling, rails, PSU, switch if not incl) comes to $288 per month/server.
$288 seems like a reasonable price to me for those specs. OVH offers that same config for more but with 2x PSU.
Second years expenses would only be $75 per month (not including hardware replacement) and then you would have the option of selling the hardware for tens of thousands of dollars still. What am I missing when people say colo is more expensive?