I hope that "managed host" got fired in a heartbeat and you moved elsewhere. Because they don't know WTF they're doing. As simple as that.
Firing a host where you've got thousands of servers is easier said than done. We did do a quote exercise with another provider that could have supported us, and it didn't end up very competitive ... and it wouldn't have been worth the transition. Overall, there were some derpy moments, but I don't think we would have been happier anywhere else, and we didn't want to rent cages and run our own servers.