Actually, I moved from dedicated hardware last year to using KVM VPSs, interconnected via VLANs and tunnels (like WireGuard or rathole).

Cost and flexibility were the main reasons. This allows me to change locations, upgrade plans, or switch hardware more easily. Before, I ran a Proxmox cluster at home on an two old Supermicro server and a Protectli Vault (which still exists as a single Proxmox instance), plus instances on Hetzner and Webtropia with a dedicated server. That setup cost around 150 EUR/month, even split with a friend.

For local storage, I use 2x QNAP NAS.

For time synchronization, I rely on 2x NTP270 from CenterClick.

As a TAP device, I use the Protectli Vault and a Pi 4b.

AdGuard Home is deployed on my OpenWrt GL.iNet routers.

Most of my services are now hosted on VPSs:

3x Netcup VPS 1000 ARM G11 (6 vCores, 8GB RAM, 256GB NVMe) 7.29 EUR/month each

3x Netcup VPS piko G11s (1 vCore, 1GB RAM, 30GB SSD) 1.60 EUR/month each

1x Webtropia Cloud VPS S2 (4 vCores, 8GB RAM, 100GB NVMe) 4.99 EUR/month

1x Contabo Storage VPS 20 (3 vCores, 8GB RAM, 400GB SSD) 6.66 EUR/month

2x IONOS VPS Linux M+ (4 vCores, 4GB RAM, 120GB NVMe) 4.00 EUR/month each

Total monthly cost for all servers: 46.32 EUR.

For failover and load balancing I use DNS (via round-robin and inwx-dns-in-git).