I recently quoted a similar server, but with the 2x 72 gb scsi's and got it in under $500 a month. But that was with an 18 month commitment.
RackSpace is expensive - any price comparison to other proviers is out the window, but as far as RackSpace prices are concerned that sounds a little high. If you can get your salesman on the phone and you're willing haggle and prepared to sign a contract you should be able to get better than $900
Rackspace is also for companies with more money than sense.
haha, nicely put.
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That said, you actually DO get what you pay for (I am in no way affiliated with them, I have experience with them through a former employer). They are 100% on the ball and you will not have downtime, provided you didn't completely destroy your server on your own.
However, if you are comfortable with paying less and committing for an extended period, by all means do that. Managed hosting is managed hosting, and you're going to get the same basic QoS regardless of who you use. The thing is that for $900/mo you get what you pay for. For $500/mo you get $900 worth of managed hosting.
Bottom line: they're excellent, but so are a hundred other managed hsots that are a lot cheaper.
I've had serious hardware issues with them in the past, and have spoken to half a dozen or so of their vaunted support staff regarding various Linux and networking issues I've had to deal with on their servers. They generally know what they are doing pretty well, but you'll constantly get bounced around from one rep to another, with no consistent account management on their part. I would hardly rate them top of the line, though. I can't speak to the quality of the network, but from what I hear it is quite solid.
But, a server with those specs could be had for around 40% or less of that price, from plenty of reliable data centers.