First a cheap dedicated server is a true Dedicated server. Some web hosts are trying to sell Virtual private servers ( What is a VPS ?) as cheap Dedicated servers, this is unfair! A cheap dedicated server is a low cost dedicated server but a true dedicated server.
Some dedicated hosting providers are specialised in this business, they are able to maintain very low prices because they are owning and operating their own colocation facility, they are buying harware and purchasing bandwidth in large blocks. Generally, they are offering the technical support via a user friendly email ticket system, the telephone support is optional.
Other dedicated hosting providers offers some great discounts or special deals on their dedicated servers , in this case they need to increase their client base or need to sell unsold or used dedicated servers.
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