That is not always true. That depends on what you are going to do with the server. Maybe if your needs may not change for a few years, then owning your own server may not be so bad. Once you have paid for the server in full, colocating is cheaper than renting a dedicated server. If you do expand, or you do need a higher configuration, every server is upgradable. You can always stick in more memory, put in a faster CPU, add more hard drives, or even upgrade your existing one. If you want to change the whole configuration outright, then you alwys have the opportunity to sell your current server and purchase a new one. There are a ton of people that are looking for cheap servers, and you can't get any cheaper than a used one. I get requests all the time from people that want to purchase used servers off of us, because many times we try to help out our customers, by selling there old servers that they have no use for anymore.