They only operate in Europe where computing services are generally cheaper and they seem to be running on processors that are a few years old. It's not outdated old but there's a chance the servers are what remain after a more premium product is upgraded.

Also there are no performance guarantees, no SAN for the SSDs (no redundancy so much lower cost), limited bandwidth and a lower SLA.

I'd guess that since there are no performance guarantees, they're likely overcommitting substantially.