Xan wrote:
Here's an idea: what if a service provider (like Linode?) offered a hot spare service. For example, with 100 customers, have 10 servers worth about $300/month. Charge each one (say) $50/month, and accept a disk image from each. Customers can then deploy their image if they need to, upload the latest database, and incur a (probably fairly steep) daily charge for actually using a server.
You might want to check into Amazon EC2. It's an on-demand virtual machine service that is pay as you go: $0.10 per CPU/hour, $0.10 per GB bandwidth in, $0.18 per GB bandwidth out. You'll also pay $0.15 per GB per month to store your machine image (plus any other persistent data you want) on Amazon S3.
The caveats are:
1. Amazon EC2 is still in a limited beta, I think for about a year now. They occasionally add customers from a waiting list. I was told back in March that it would out of beta (and presumably open to all subscribers) by the end of the year.
2. Amazon EC2 nodes don't seem as reliable as Linode. This could simply be because Amazon is still working out beta bugs that require rebooting their hosts.
3. Setup is more difficult. Amazon provides only Fedora Core 4 images. You're free to use these images as a base, roll your own from scratch, or use other people's images that they make public. I've been tweaking their standard images because there seem to be a number of gotchas with other distributions and I don't trust an image that comes from someone else.
I think Amazon intended EC2 for distributed computing, e.g. set up your own cluster. I don't think it works so well as a server hosting facility, which is how a lot of people seem to want to shoehorn it. One of the key issues is dynamic DNS - every time you start a machine it gets a new IP, and someone else will get that IP if you give it up. I fully plan to keep my personal server on Linode. EC2 might be a decent fit as an emergency backup server, though.