Changes

I don't own a data center business myself but I have a friend who does and I colo several servers there. He has several racks of some old Celeron boxes with 512 mgs of ram and one or two 80 gig drives depending of if the customer has any concept of backups, which most of them don't. I'm looking at the racks of Celerons and P4s thinking that each rack could be consolidated into a single modern server and that the customers would actually have a better server than the one they are on now. And the cost saving is tremendous.

Most small dedicated servers are a waste of resources. People buy bigger servers than they need and the excess capacity is wasted. These servers take both space an power which is expensive in a data center and you have hardware costs assiciated with each server that you have to recoup. People often don't do any backups so after several years the hard drive fails and they lose everything. And it's your fault for not backing them up in the first place.

On a dedicated computer the user is stuck with an old slow 32 bit processor, a limited amount of ram, and an old slow hard drive with no backups. In a VPS that same user is running on a shared dual core 64 bit CPU sharing 8 gigs of ram with fast modern large hard drives with raid backup. That is a significant improvement over having their own dedicated box. So this is a better deal for the customer.