Latency is a Killer

Here's a list of Australian VPS providers. http://www.vpsau.com/

Unfortunately they don't all provide self service and some even have a setup fee!

The amount of traffic you get varies. For $40/month I've seen 5GB up to 60GB traffic on a 256MB VPS. I'm one of the people shocked by the true impact of choosing cheaper overseas hosting. I'm also running 12 VPS's at home on a DSL connection and they're super fast for Aussie users.

As an Australian I can confirm that the AUS to US latency (or AUS to anywhere really) does indeed suck. I REALLY notice the difference when I on an Aussie site.

However hosting over in the US is a lot cheaper than it is to buy locally. Still, I'd urge application developers to buy hosting in the country of your target market.

Are there any Australian startups here and if so, are any of you primarily targeting Australian users?