You have to compare the actually performance of the dedi or VM. Cheap dedis and VMs are usually old, cheap hardware with relatively bad performance. I'm running a 20 core, 96 GB ram, 8TB colocated server for $55/month.

Where are you getting colo space that cheap? I'm moving a non-profit off OVH and onto dedicated and I'm looking at $150/month Canadian for 2u + 400w.

Also, don't forget about hardware acquisition costs, upgrades over time, replacement hardware and downtime due to outages, etc.

https://microtronixdc.com/ https://www.fiberstate.com/colocation