[motion]

I'm struggling with what to do regarding the hosting fees I'm paying out currently. I have about 150 customers whom I host .NET websites currently and am growing at about a 10% per month pace. I use HostMySite.com and am extremely happy with their service. However, my monthly hosting bill is now around $1500 per month (plus $300 per month in new setup fees) and I need to start looking at ways to reduce this.

Each host account is costing me about $9.75 per month. For that monthly fee, I get the following from Hostmysite:

.NET hosting
Setup of new accounts
SmarterMail web-based email program
SmarterStats online stat reports
24/7 customer support
All the usual tier-1 hosting benefits (redundancy, tape backups, etc.)

I could go with a dedicated rack server for something like $200-$300 per month and put hundreds of accounts on it, but I think (not sure) they come as just empty servers and you need an IT person to manage them. I want to have all the same software and management benefits, but possibly with a dedicated server. In other words, I want it to be hands-off for me, like it currently is, but cheaper and able to expand to more customers.

Any ideas or input?