If you can run everything you need on two or three servers, what you describe can work. But it’s still hobby status, basically. The equation changes when the scale gets significantly bigger. Managing a non-trivial hardware fleet requires people, and people cost money.

The reason “managed services” of all kinds, including cloud services, are so widespread in business is because someone else is managing things so that you don’t have to. This is as serious as it gets in business. Managing your own hardware makes very little sense for many, if not most companies.

One server is enough for many small businesses. And for large business (like X or Instagram) it is economically more profitable to own their servers. For example, in my country top companies like VK or Yandex own their datacenters and sell cloud services instead of paying for someone's else cloud.

Also if you have several servers you do not need to hire a full-time sysadmin.

> Managing a non-trivial hardware fleet requires people, and people cost money.

People in AWS also cost money and guess who is going to cover this cost?

Own hardware has a weird scaling curve.

It does not make sense for a lot of time and scaling. You need 3+ people maintaining it, you have upfront costs in the hundreds of thousands of euros on the very lower end. If you don't utilize that money spent, sucks to be you. You have planning times in the area of months, not hours, unless you keep capacity you don't use around (rackspace, cabling, power/cooling capacity).

On the other hand, if you have that hardware management running, it's very amazing. Before the AI nuke, We were looking at moving various systems fully bare metal, because it would simplify management on both sides a lot, and a common statement I heard is "We don't deal with systems that small. If we do bare metal container hosting, we don't measure in dozens of gigabytes of memory. Your business case validates that investment. Here is btw three test systems about double your requirement, just old".

Before the AI nonsense (HBM Memory Demand -> RAM & SSD prices), this would result in very competitive hosting costs after some scale, when amortized across 5 years and then tossed into the testing environment until it stops functioning. And these testing environments allow for a lot of experimentation and failover testing.

Though now it's all very different and not clear.

i dont get this dedicated servers = hobby mentality

you can do a ton with just a couple of dedicated servers with the redundancy you need

There seems to be some confusion, although one other user interpreted the same thing, I still believe it's a misinterpretation.

I said dedicated servers, I never said anything about owning or managing the hardware. You can rent a dedicated server.

The decision to virtualize and the decision to own the hardware are separate decisions.