Do you have cheaper hosting on cheaper servers, eg. with 1 CPU and with SATA or IDE harddisks?
Currently, we use only 4-CPU servers and SCSI harddisks for performance and reliability. Our servers cost SGD10,000 to SGD20,000 each instead of the SGD500 to SGD3,500 servers used by other companies. Our servers have 3 x redundant power supplies each, hardware RAID 1 (mirror) for the harddisks and hotswappable (SCA2) SCSI harddisks.