Yes, but it can be difficult to find a dedicated hardware server at a quality web host with meager specs. I honestly think witnesses (even backup witnesses) should not have to use cheap cloud based servers and/or dedicated servers at sketchy hosts. If you are running a virtual server in "the cloud" you are less secure than you think, and even a managed dedicated server means it is trivial for people at the hosting company to compromise your witness server. Unmanaged dedicated servers at a good host are not cheap.
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Ah. I completely understand your reasoning now.
Cloud VPS systems are far less secure.. you're right!