Earlier quoted context omitted.
If there’s any hardware issue on your dedicated box it might take a lot of time until your box gets back up (hours, days…). On a vps it’s less likely to happen in the first place (hvs are usually better quality) and if that happens migration takes minutes.
The prices mentioned in the top comment are for a Hetzner VPS. A dedicated server (bare metal) on Hetzner with the same specs costs a fraction of that price.
It is very cheap, but it is also a lot cheaper than most VPS providers.