It sounds really interesting, but it still doesn't answer the question of how you are able to offer this service at that price? Is there something we don't know?
Here's a pic: http://www.piqd.com/tarbackup_server.png
You can check out more info and see other pics of the hardware here:
http://www.reddit.com/r/linux/comments/zt1md/hey_linux_im_ma...