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But they cant refresh hardware already sold to customers can they?

So increasing prices on existing cutomer hardware is what, subsidising hardware refreshes elsewhere in the datacenter?

Often they do not actually sell you hardware servers, but VMs running on them, with designated properties.

Hetzner do both.. well rent, not sell, afaik

I ment selling time-shares, so yeah rent.

I agree but this is not only easy to tell, you also specify when you buy AFAIK.

You either buy VPS or bare metal servers.

Hosting providers do not sell hardware. They rent it.