A major con is that you will be forced to choose between a limited selection of server configurations. Let’s say you want a RAID 10 Hard drive configuration and the dedicated dual Xeon server provider only offers RAID 0 and 1 and 5 because the servers they buy/lease only come with a maximum of 3 hard drive bays and you need more for a RAID 10 setup. Or let’s say you need 16 GB of RAM and they only support a maximum of 8 GB, currently the standard maximum for most hosting providers (a few offer more but it is pricy and rare). In these cases it may be more beneficial to buy your own Dual Xeon Server.
If you need a standard dual Xeon server configuration then renting a fast dedicated server would be fairly affordable, but if you need a heavily customized server then you could be paying very high monthly upgrade fees. For example adding an additional 4GB of RAM can add an extra $50 per month to your server bill that works out to $600 a year, you can buy 16 GB of ECC FB 667MHz Server memory used for less than $400. The same goes for high end processors if you just need the lowest speed dual quad core Xeons then renting can be very affordable; however if you need blazing CPU speed and large CPU cache then you are better off buying your server.
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