As long as the price > operating cost, they'll eventually make money on it. You could say that they take a different approach to say Rackspace or Softlayer which try to recoup the initial investment during the first month.
In 3 years time, they'll still be selling these machines. A lot of companies still offer the Xeon's 3220, which, if I'm reading wiki correctly, first shipped in Jan 2007.
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As long as the price > operating cost, they'll eventually make money on it. You could say that they take a different approach to say Rackspace or Softlayer which try to recoup the initial investment during the first month.
But you have to subtract the operating costs, and still make your money back quickly before you have to pay to upgrade the hardware again.
In 3 years time, they'll still be selling these machines. A lot of companies still offer the Xeon's 3220, which, if I'm reading wiki correctly, first shipped in Jan 2007.
I have been using them for 8 years, they upgrade the hardware every 6-12 months to the most recent spec