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janharders - 8:37 pm on Apr 27, 2009 (gmt 0)
I'm not at all saying you shouldn't do it (as a matter of fact, we do it, for reasons Bill mentioned), but traffic costs have never been the issue over here.
It might, however, be a US-problem. I do admin-work for a company who does mostly focus on german markets, but does also have a few websites focues on the united states, so we decided to get local servers. I was surprised to actually see traffic limits and real price tags attached to the giga byte. Since we had, at least on the continent, not sure about the uk, vast investments in the infrastructure, traffic costs have fallen. It's not unusual to get a "flat" (that is, most providers limit your uplink to 10mbit after 1tb, which you can raise again by paying) for 50 euros a month, including hardware and rackspace.