If they would buy that components and build their own system (the cheapest way IMHO) they still would end up with around 7,500-8,000 for a Quad Xeon 512, 2 GB RAM, 3+15 Disk etc..., plus there is 12x50 = 600 GB Traffic included, alltogether 2,000 per year. Even if they buy traffic their own for lets say $1/GB there would be only $ 1,400 left to pay the Xeon. Someone here alread said it: They would need to sell the server for 6 years untill they start earning any money. And as for the traffic: Alabanza traffic isn´t even $1/GB right, it´s more like $4-5 per Gig or more? Not to mention the $ 0.34 / GB offer that these guys (server-source) offer along with the "Linux Reseller" package.
So did anyone already tried to order or even DID order or DID actually get the server? If yes I guess you won´t have that server too long..