jasonlitka wrote:
A truly hands-off, managed solution is VERY expensive. I've got an arrangement like that with a provider at work. They host two physical servers (storage and MySQL), seven VMs (4x App, 1x MSSQL, 1x FTP, 1x memcache), a Cisco ASA, and a Cisco ACE and the total monthly bill for servers, bandwidth, and fully-managed support is around $7K if memory serves. I don't recall the breakdown between hardware and support, but I believe it was something like 50/50.
If all you are getting for $3.5K a month is incident response you are paying way too much. That might be about the right price if they are spending lots of hours admining these machines or if you are buying support for some really specialized software. For standard Linux stuff it's just too much money for too little work.
Obviously I'm rushing to judgment here because I don't know all the details of your case.