Not planning to get it or anything (yet), but I've been looking into seeing whether dedicated or colocated servers are cheaper.
Well, I had a look, and was somewhat surprised how cheap you can get one.
What do you think of this? (all prices are in AUD, and from some computer store here in Brisbane, so you could probably get stuff cheaper in the US/UK)
CPU: $499
Intel QUAD XEON E5420 ACTIVE 2.5G/12M/1333Mhz
HDD: $169
Seagate SATAII NCQ 500GB 7200RPM Server Edition
(could probably have some RAID setup; the store doesn't have SAS HDDs, so dunno how much they cost)
RAM: 2x $189
2x OCZ 4G(2x2G) PC6400 800Mhz Reaper HPC 4-4-4 (8GB RAM)
or, go for generic RAM (probably wouldn't on a server) (4x $45)
4x DDR2 2048MB(2G Single stick)PC6400 800Mhz
Motherboard: $288
ASUS P5BV-C/4L Server M/board Intel 3200MCH 1333MHz DDR2-667/800 PCI Express x16 8x SATA RAID GbE LA
(dunno really, just the above happens to meet all the necessary specs, and was the cheapest)
Other: well, I'm not sure what else a server really needs, except a case/PSU. Not sure if a video card is needed, but if one is needed, the cheapest that can be found (if the motherboard doesn't have onboard video).
Doing a search for rackmount/server cases, the cheapest at that store seems to be around $200 (O_o, that's very expensive for a case...)
In total, the above parts come to about $1,534.
If wee assume the server has a life span of 3 years, and can't be sold after that time, that's roughly AU$43/month.
IMO, that's pretty good in comparison to what's available in the dedicated hosting field.
Just out of interest, let's step up the machine a fair bit, to compare to expensive dedicated hosts:
CPU: 2x $499
2x Intel QUAD XEON E5420 ACTIVE 2.5G/12M/1333Mhz
(no need to go faster - probably having more multi-core processing is more beneficial)
HDD: $450 + $144
Seagate Cheetah 146G 8MB 15KRPM U320 SCSI HDD(ST3146855LC)
(store system stuff here)
Samsung 750G 7200RPM 32MB Cache SATA II
(store large downloads here)
RAM: 4x $199
4x DDR2 4G(2x2G)PC5300 667Mhz ECC Kingston(KVR667D2E5K2/4G)
(going for slower, but ECC registered, RAM)
Motherboard: $640
Intel S5000VSASAS Server Board 667/106/1333FSB Dual GLan
(doesn't have SCSI, so would need to get a SAS HDD instead)
Case: ~$250
The above totals $3278. Assuming, again, 3 year lifetime, that's around $92/month. And that's for 8 CPU cores, a 15k RPM HDD and 16GB of ECC RAM (it's probably more optimal to have multiple servers, but for simplicity, I'm using one).
So how much does colocation cost? I don't really know that much about it, but from looking around, I've seen deals for 4U (size of the server in
rack units) 3Mbps (~948GB/month), for around $130/month.
So that's around $180/month for the "cheap" server, if wee assume I've not left something out (chances are, I have), and $240/month for the expensive one.
Dunno, colo seems a little too cheap compared to dedicated? If wee're going to dump the server after 3 years, I wonder if it could be donated or something (someone's sure going to have fun with an 8 core, 16GB RAM machine with a 16MB video card =P).