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We are very satisfied with dedicated systems from http://www.hetzner.de/en/hosting/produktmatrix/rootserver-pr... and http://ovh.co.uk

That said we run kvm on every box and run all customer and own apps in different VM managed (all managed by chef). So we're kind of running our own inhouse VPS-hosting-service.

We can achieve ultra-low-per costs per VM (as regular VPS providers would charce) but in the position to be the "root" customer of the box. We can decide which virtualization stack we want to use etc.




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