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Originally Posted by Barefootsies
It depends on your hosting market.
There are many people who upgrade from a VPS to a lower end dedicated. There are a number of niche markets in hosting. Not everyone needs the latest and greatest based on their actual NEEDS. People will go from a PROMO, to a premium to a dedicated. But they do not have the budget for a $200 Quad, nor need it.
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In addition to our quadcore and dual quadcore boxes, we have several atom boxes and p4's -- not for production, but for simple development servers, internal rsync mirrors on pnets, remote backups, etc. They serve a purpose at a reasonable cost. They key, as you said, is identifying your specific needs and understanding the limitations of your choice of servers. We certainly do not need a dual 5620 box and 16GB of DDR3 as a dedicated rsync storage server.