Got it, buy the cheapest possible 600$ server, pay 200$/month to collocate it (also do a cost benefit of different facilities), be responsible for all hardware failures and availability issues.
Cloud systems have become cheap enough and flexible enough that protecting your customers by not putting your bugs on their hosts is not as big as a lift as it used to be when you had buy bare metal servers or explicit VMs.
Surely $600 dollar servers all cost the same