I founded a hosting company 25 years ago when User-Mode Linux was the hot new virtualisation tech. We aspired to just replicate the dedicated server experience because that was
obviously how you deploy services with the most flexibility, and UML made it so cheap! Through the 2010s I (extremely wrongly) assumed that being metered on each little part of their stack was not something most developers would choose, for the sake of a little convenience.
Does a regular 20-something software engineer still know how to turn some eBay servers & routers into a platform for hosting a high-traffic web application? Because that is still a thing you can do! (I've done it last year to make a 50PiB+ data store). I'm genuinely curious how popular it is for medium-to-big projects.
And Hetzner gives you almost all of that economic upside while taking away much of the physical hassle! Why are they not kings of the hosting world, rather than turning over a modest €367M (2021).
I find it hard to believe that the knowledge to manage a bunch of dedicated servers is that arcane that people wouldn't choose it for this kind of gigantic saving.