I have been using Amazon Web Services (EC2 and S3) for the last year and it is amazing in terms of scalability, reliability and is very cost effective - You can boot a server up for $0.085 US an hour, and store data in S3 for $0.15 US / GB a month and it gets cheaper the more you use.
I had a look at Iserve (Orcon) Cloud computing and cloud files but there pricing is way out of whack. The server pricing doesnt look too bad but the cloud files ends up costing $3.60 per GB per month ... 100GB storage is going to cost $360 a month at Iserve or $15 US a month with Amazon .... Hard to justify using Iserve when Iserve is 18 times more expensive than Amazon, Maybe twice as dear being the fact its NZ would be acceptable not 18 times !!!!
Seems like plenty of oppurtunity in this space it will be interesting to watch ....
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