The hardware costs for disk/RAM/chassis swaps when they break are zero, they come from cannibalized servers probably from the same lot that are long-since amortized.
The labor? Negligible. Most dedicated server providers put their engineering dollars into services, automation, and network capacity. I know a dedicated server firm in San Francisco that pays it's button pushers and hard drive swappers $15/hour, or about 50% more than they would make at McDonalds .. In comparison, the nominal cost of labor for the average task is almost zero. Most dedicated server companies also have banks of systems administrators working in India for $5 per hour to further reduce their costs.
I've run two companies that provided dedicated servers as part of their overall offerings, worked at another two, and consulted for another two. The numbers say: Old Hardware Is Profitable But Expendable.
The labor? Negligible. Most dedicated server providers put their engineering dollars into services, automation, and network capacity. I know a dedicated server firm in San Francisco that pays it's button pushers and hard drive swappers $15/hour, or about 50% more than they would make at McDonalds .. In comparison, the nominal cost of labor for the average task is almost zero. Most dedicated server companies also have banks of systems administrators working in India for $5 per hour to further reduce their costs.
I've run two companies that provided dedicated servers as part of their overall offerings, worked at another two, and consulted for another two. The numbers say: Old Hardware Is Profitable But Expendable.