If you look at their website (www.servermatrix.com) you'll notice all these great deals for dedicated servers. But when you look at their prices for co-location..it's a complete difference. The cheapest only gives you 100 gigs of bandwidth and even that is $50 a month. $200 for 400 gigs of bandwidth. If you rent a server you get 1000 gigs of bandwidth for much less.
Normally, shouldn't co-locating be cheaper overall? They don't have to really setup your box or do anything special with it. You just send it to them, they hook it up and that's it.
The 1000 gigs for dedicated server is a bit of an oversale. 99.9% of their customers won't use anywhere near 1000 gigs, so they can offer it to them all. But a colo generally uses its entire bandwidth allotment, so they can't play the same balance game.
I guess i'm an exception as I have 1 box that uses 700-800 gigs of bandwidth a month and another that uses 400-500 gigs of bandwidth a month and i'm moving the applications running on those servers to SM. I'll make good use of that bandwidth ^_^