Self-hosted vs outsourcing
blog.puncht.com
blog.puncht.com
Perhaps there's room in the market for all-in-one local solutions (even if it's the freely-produced-out-of-love market). I'm thinking of something like Wamp for Windows (a complete LAMP stack that you can install from one exe and gives you a simple control panel for the whole thing). Maybe a Linux distro that installs (or gives you options during install) all the packages you might want for a web business - source control, bug tracking, blog, wiki, web server, db, scripting languages, etc) plus configures firewall, backup systems, etc (or guides you through setting up something like that). Or maybe it's not a distro but a HOWTO.
Or maybe that sort of thing already exists and someone wants to link to it :)
I think I'm better off with a VPS, gitosis, and local backups. It's cheap, it works, and it doesn't matter that I don't have all the cool social networking aspects of GitHub.
An VPSes (especially the very cheap ones) go down as well. So I think it's ~ the same.
I'm not on prgmr yet but I've heard good things. And Backblaze is awesome.
And the point about VPSs is just as true. Things can go wrong with your own boxes hosted in your own space too.
All of these services are great as they allow small startups to get going with less upfront requirements (ex: setting up a physical machine and finding hosting space). It's still important to take consideration on whatever path you choose to avoid getting bitten hard at the worst possible time.
The person in this story took the risk (although her reward is different) and failed. C'est la vie.