While that may be a good choice, they still have to purchase the parts and take care of installations and managing their own server after that. You could get away with a low-end server if that's what you need and use Google Apps' Premier Edition accounts which cost 50$/year and come with a guarantee of 99.9% uptime, even though because of their cool architecture I doubt you'll ever see it down.
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I would go with what cristibighea said.
Google Apps' premier edition is a cost effect solution to obtaining 100% uptime! I have an account that is premier, just for test purposes, and it has never gone down!
-Jacob iWF Hosting - 5 US datacenters offering shared, reseller, dedicated, VPS and Colo
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I think you cna find $50/month dedicated server but that would be P4 machine. Honestly you can not expect great support for these money, unless you do not have any special business relationship with the hosting provider. i wouls suggest you to speak with some web hosts and to discuss the service.