You can purchase some really cheap computers these days. Makes me wonder why cloud computing is so popular (hint people are lazy).
Xeon 2.5GHz Quad
2x500TB Raid 1 HDDs (SATA so not great, but should be fine)
24gb Ram (yeah sweet)
Windows SBS 2011
3 year onsite warranty.
1gb ethernet link with unlimited transfer between server and workstations :p
24gb Ram and SBS for less than $3k, seriously nice.
It has been interesting to see my clients thoughts on cloud computing. Some are all for it, while others won't touch it. Long term it seems like the only solution, but for many customers they simply don't trust these cloud providers (and I'm mostly in agreement).