Enterprise hosting may be a losing business these days, with a shrinking market and huge over capacity in terms of bandwidth and space. However, lower prices mean that personal managed servers are a reality. The new service below starts at $99 per month:
Rackspace founder launches new company offering personal dedicated servers
A package with installed weblog software would be a suitable service for emerging business weblogs like Gizmodo. Imagine an entire content management software system, Linux on Intel hardware platform, rackspace, uptime guarantees and burstable bandwidth for $100 or so per month. Compare this with what publishers were spending a couple of years ago with Vignette driven systems on expensive Sun servers hosted at Exodus.
As an example of the market for Sun hardware, check Ebay. Not that long ago this would have cost you several tens of thousands of dollars. Current bid, around $500 – it will probably go for less than $2000: