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500GB, £4/month.
I could do it cheaper, but I prefer a dedicated server.
I have something like that available as well, though I'm just using 25% of it.
How much you actually need depends on how much you want/need to back up.
Oh, yeah, backups... Whoops :$
Hmm, this looks interesting: http://serverhub.com/vps/ssd-cached/
10 x @cassa i thinck is a good offer
Much better just to do it yourself. I got a few 2.5" HDDs at home all backup different data which upload it to a KS2 and keep for 15 days (unless i am away and it is extended)