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Well, you gotta take all that into consideration before your build out.

You can use block storage if data matters to you.

Many services do not need to care about data reliability or can use multiple nodes, network storage or many other HA setups.

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Isn't this nature of every dedicated server? You also take on the hardware management burden - that's why they can be insanely cheap.

But there is middleground in form of VPS, where hardware is managed by the provider. It's still way way cheaper than some cloud magic service.

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VPS comes at the cost of potential for oversubscription - even from more reputable vendors. You never really know if you're actually getting what you're paying for.
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They also offer dedicated VPS with guaranteed resource allocation.
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