It seems a bit like car leasing, providers gets a bit of discounts for their volume purchases and customers pays a premium (that is still affordable) compared t

It seems a bit like car leasing, providers gets a bit of discounts for their volume purchases and customers pays a premium (that is still affordable) compared to just taking the entire deprecation cost themselves. The provider then still has something worth a fair bit of cash that can still generate income (through resale). So if you look at a 2 year horizon and want to keep cutting edge (or prefer operating expenditures to capital expenditures) then it's cheaper whereas looking at a 5 year horizon the capital expenditure will pay off. Hetzner is very bare-bones compared to regular clouds (a friend who was after performance but wasn't prepared for this ran into some issues when a disk died), so you need some procedures for backup/replication in place but if your procedures are in place then you can save big compared to the regular clouds.