Re: The real issue is that their business model is currently dead in the water.
In many cases, Colo makes more sense than cloud, especially regarding money.
For one, the service provider can't blackmail me into artificial price hikes. When using a big cloud provider, the software if oftentimes designed to work against their specific API. With Colo, i don't have to do that. If they want to increase prices, i can just take my hardware, plonk it down somewhere else and i'm done.
Also, since it's my hardware, i can buy upgrades and i pay only once - instead of monthly for the rest of the decade. I have seen stuff like getting charged 50 Euro per month for a RAM upgrade, where the hardware costs less than 300 Euros. Why would i basically want to pay for new RAM every 6 months?
It's important to remember that colo and cloud are not only used by companies but also by individuals and open source projects. You can get decent second hand hardware quite cheap and run it for a decade and just buy cheap upgrades/replacements on Ebay when/if they are needed. And of course, you can the operating system of your choice and also run multiple virtual machines.
My private Colo server is now 10 years old, and except for a couple of additional harddisk still runs the original hardware. I run multiple virtual machines, 24/7, sometimes pegging the CPU at 100% for hours. Doesn't matter. gets the job done without having to worry about getting a huge invoice because i "used too much CPU" or any of the isht.