Entirely different problem from a provider that loses one internet connection and their other links can't keep up with traffic, but you can still have major problems even if you're spending thousands of dollars a month compared to hundreds.

At a previous job we hosted with {HAL} out of Atlanta. A NOC operator there saw/heard/smelled something that indicated to him that he should hit the Big Red Switch. So he did. This removed power to every machine in that part of the DC.

After management confirmed that there was no life-threatening emergency, they started bringing everything back up. Only to have machines start going down again 20 minutes later, as their local UPSes ran out of juice. Someone had to walk around to every cage and recycle them all manually.

The idea of using DC hosting providers is because the uptime, environment and usually strong network connectivity. Given the poor run they had I think the developer would have had a better uptime if he had hosted this at home on a server.