Could be anywhere in the world if the price is worth it. The nearest to South America better. It is also important to be able to have a great download (Server -> Internet) so if we need a file we can have it faster.
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We are paying at this moment $75/server to Sagonet (2GB RAM old Pentium with 2x750GB). We got this server long time ago and they did not have bigger HD's so we had to go with 750GB (we had to pay a high setup fee - around $550).
I believe the best deal would be servers with Celeron or Atom processors and 2x1TB HD (software raid) or 2x2TB HD (software raid). What do you think?
How much data do you actually need to back up? I know it sounds dumb, but I've seen lots of people saying "but I get a better price per GB if I rent a server with 2 TB of disk space" and ignoring the fact that they only have 100 GB of data to store. There's no point getting a good price on disk space you're never going to use...