I am now saving about $500/mo. and have probably 20 times the power I had previously. That cost about $6,500.00 up front. I plan to add more servers but that will be even more cheap to do once I get past the up-front cost of purchasing the server. I won't have to pay the hundreds and hundreds additional per server.
IF you find a good colo facility or a company that is in a top tier colo facility I'm not sure I understand where the pitfalls are IF you have good equipment and a good agreement with them.
I've worked out an excellent agreement in one of the best colo facilities in the nation - just visited it yesterday - and I feel very good about this. I'll report more in the near future on total costs and what I see as the pros vs. cons.
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