One thing that always scares me when i think about it, how much does an internet conncection cost, that has enough up/down stream to support the literally thousands of sites hosted here?
Well let's see here. Most datacenters these days have 10Gbps+ worth of connections. Since the cheapest provider I know of that is out there is Cogent, who is a Tier 1 provider that does backbones and a lot of datacenters have as a provider, they sell fiber optic backbones for $7 a megabit in symmetrical. Now, seeing as though 1 Gigabit is 1,024 megabits, you can do the math. At $7 per megabit, times 10 would be around $71,680 per backbone a month. A one gigabit line which is what x10's servers each have from Cogent's pricing would be $7,168 a month, but since the line in the datacenter is shared amonst thousands of servers, x10 doesn't need to pay that much. Also don't forget, many datacenters don't have just one provider for a backbone. One datacenter, for example might use several providers such as Cogent, Verizon Business (Alter.net), Level3, TeliaSonera, or build their own backbone as well. This is for redundancy, so datacenters are spending a lot of money just to run your servers, not to mention the fact that all of the equipment in the datacenter is enterprise grade stuff that costs thousands of dollars.
Since x10 leases dedicated servers, they are paying roughly $300 a month per server, along with any upgrades/non-included repair to the server. This monthly fee comes with electricity, bandwidth, cooling, and datacenter support, along with some extras if anything. So x10 is making very little profit if anything.