Clouds are bursting and it is raining Servers
Rackspace is getting into the game with Mosso. Looks interesting. Here is a GigoOm article on the topic. The interesting part is that they host the Microsoft platform: IIS, .NET and MSSQL. Another company mentioned in the article: Joyent.
I am very bullish about hosting our infrastructure in the cloud. The recent Amazon S3 failure highlights the need for risk mitigation: load balancing across two providers? - just like we buy network bandwidth in a data center. I hope someone is thinking about this!