WOW that's cheap. You don't say anything about service/support though?

They have 24/7 english and german language telephone support http://www.hetzner.de/en/hosting/kontakt/telefon-support/ (all the root servers are in DC 10/11/12). In over a year I didn't have to call them once, therefore I can't tell you about my personal experience. They answer emails very quickly.

The competition in this market is quite strong in germany, there are 5 major companys offering basically the identical dedicated server service. The servers are not virtualized, therefor you usually have to commit to longer running contracts or higher setup fees.

Would you mind enumerating what 5 companies those are?

i dont know which 5 he means but i guess:

http://www.hetzner.de/ http://www.server4you.de/ http://www.strato.de/ http://www.hosteurope.de/ http://1und1.de/

also http://www.serverloft.com/

Exactly :)

Been with them for a year now, their service is top notch.

Presumably compared to a VPS, they have no redundant PSU, no ECC memory, scaling up or a hardware failure will involve real downtime.

i also use these guys; in the past it has helped to have a german speaker around...

If you are a company outside of the EU (like the US) make sure you mention that you are VAT exempt so they don't charge you for that.