If you go ahead and buy your own XEON servers, you are just wasting your money. Think of all of the infrastructure you have to maintain just to have a single server. You have to have the equipment, a secure place to keep it, at least one IT person who can maintain the system and you still need a connection to the Internet backbone so your employees can access the server in the field. We use a cheap VPS for Windows. It is the same XEON E5 hardware that is scalable to our needs.
We started out on a VPS that was 1 gig of RAM and 40 gigs of storage. We had a terabyte of bandwidth using 1 gigabyte per second on an uplink. Since then we have progressed in our business to need their top tier of service at 4 gigs of RAM, 100 gigs of storage space and 4 terabytes of bandwidth per month. All of this without having to own and maintain one solitary piece of server equipment. This is what is allowing us to stay competitive and earn a better bottom line.
I know a competitor who literally has a closet in their corporate headquarters where they keep their server equipment. The building has an alarm system, but they could essentially lose all of their server data in a moment of time due to a natural disaster or other event. We contract with a host that offers a cheap VPS for Windows. They maintain all of the equipment and manage the built in security redundancies to keep our data safe. We could not afford to have the infrastructure in place to cover all of those costs. Doing it this way allows us to increase our profits and even pay people better. It is the new way of managing the computer power a business needs.