However, with all the infrastructure stuff that's needed for a software organization, having all of these services hosted quickly becomes a nightmare to manage in itself?
By infrastructure stuff I mean all of the following and more (and the decision to run it yourself or have it hosted): - Hosting - Amazon EC2 or Rackspace - Bug and Task tracking - Bugzilla - Version control - Git (Github private costs $/month) - CI - Jenkins - Deploy - Heroku (hosted) vs Capistrano scripts (DIY)
Because I like to do pretty much everything myself and save money whenever I can (I have been hosting several websites from my home desktop on dynamic DNS w/ freedns.afraid.org for years)--I am just about to finally give in and actually rent a VPS from Rackspace.
Knowing that all of these are services will always be needed (or at least, should be best practices) for collaborative software building, I would much rather build these out and customize them for myself for the years to come.
The only reason I'd switch over to hosted solutions is if I or someone on my team got too busy to maintain it in-house, and if the cost savings were justifiable in switching over.
After using Jenkins CI at my last company, I really enjoyed that experience, and absolutely must have it for all of my future projects. On my list of infrastructure stuff, CI comes after hosting and source control as a basic necessity, so it should on average cost the same or less than those.
I hope I'm not being so cheap and parsimonious as to offend you, but I'd like to see a version of your service offered in the $15 price range without much sacrifice in quality/service.