While I have my own facility for servers and hosting, I also have a few virtual private server accounts, and frankly they are working out very well.

I use them for a variety of simple, non-mission critical services, like jabber, backup DNS, backup MX, and NTP services. Its well worth the $20 - $30 / month fee to have an off-site IP and full linux environment.

At this time, I’m happily using both Linode and Slicehost.