Debian 6.0 cloud servers launched with full root access
cloudsigma.com
cloudsigma.com
Looks like Linode has Debian 6 available too: http://blog.linode.com/2011/02/08/debian-6-squeeze/
I've never seen this—I've only seen Xen-like VPSs. So, let me rephrase the question: How is this different from a Xen-like VPS provider, like Slicehost, Linode, or prgmr.com?
There is a very big difference between a VPS where the vendor places restrictions on many things and retains full root access and our cloud servers were you have total control over the software running on your server and full root access.
Put it another way, if I gave you two servers, one dedicated, one a cloud server in our cloud. If you SSHed in, you wouldn't be able to tell me which was the cloud server and which was the dedicated server based on your control of the server. That's totally different to VPS.
Essentially you are combining the control of dedicated servers with the flexibility and transparency of cloud architecture.
This is in contrast to the Virtuozzo product you mention, which is a user-land virtualization product. The user environment appears to be distinct, but it's really a more glorified chroot-like environment. I know there are plenty of these hosts out in the market, but they're not the big players here on HN, or in the startup space.
Using the term "cloud" doesn't tell us anything about your service. HN is a highly technical crowd. In order to sell to this group, you'll need to "show your underwear", so to speak. What virtualization technology are you using? Maybe it would be better to have some of your technical staff field these questions. They might get a better response if they can talk the talk.
Yes. I find it very odd that you seemingly don't understand your competition at all.
Any virtualized Linux instance boils down to a VM running on a single host server. This is true at Linode, Amazon, Rackspace Cloud Servers, etc.
Xen and KVM instantiate a virtualized kernel per VM. Virtuozzo is a container/enhanced jail and runs under the host's kernel.