It absolutely is (cheaper, and a good argument). As an example: we're in the process of switching from Digital Ocean to Hetzner for a project, that will increase infrastructure performance (roughly memory/cpu/storage) by 4x and decrease costs by 4x. And no driving to the colo center is neccessary, as it's their dedicated server, so their on-site engineers do the hardware replacement.
Also, if you are not okay with your site being down for a few hours, you can always buy two, like you would with a sensible cloud setup. It'd still come up way cheaper (+ get more perf if you can do load balancing for your usage).
Also, I don't look at it from "colo is cheaper" point of view. To me, it's "I can have several times more performance and hire a full time sysadmin to worry about it, for the same price".
It absolutely is (cheaper, and a good argument). As an example: we're in the process of switching from Digital Ocean to Hetzner for a project, that will increase infrastructure performance (roughly memory/cpu/storage) by 4x and decrease costs by 4x. And no driving to the colo center is neccessary, as it's their dedicated server, so their on-site engineers do the hardware replacement.
Also, if you are not okay with your site being down for a few hours, you can always buy two, like you would with a sensible cloud setup. It'd still come up way cheaper (+ get more perf if you can do load balancing for your usage).
Also, I don't look at it from "colo is cheaper" point of view. To me, it's "I can have several times more performance and hire a full time sysadmin to worry about it, for the same price".