If your workload is totally standard then renting dedicated servers can make sense, it's certainly flexible if you expect to scale on a monthly basis. However,

If your workload is totally standard then renting dedicated servers can make sense, it's certainly flexible if you expect to scale on a monthly basis. However, if you need something "premium" like an SSD or lots of RAM then you can end up paying $300/month. Buying a used server off eBay for $400, putting a new HDD in it, and getting a colocation for $100/month will be the most cost-efficient for those on a tight budget. The provider will usually do basic maintainance like replacing HDDs for a small fee. That said, if money is not a problem then go with whatever lets you get stuff done with the least pain.