Does anyone have any recommendation for a reliable cloud host?

We require 1 or 2 very small virtual hosts to host some remote services to 
serve as backup to our main datacenter. One of these services is a DNS server, 
so it is important that it is up all the time.

We have been using Rackspace Cloud Servers. We just realized that they have 
absolutely no redundancy or failover after experiencing a outage that lasted 
more than 6 hours yesterday. I am appalled that they would offer something 
called "cloud" without having any failover at all.

Basic requirements:

1. Full redundancy with instant failover to other hypervisor hosts upon 
hardware failure (I thought this was a given!)
2. Actual support (with a phone number I can call)
3. reasonable pricing (No, $800/month is not reasonable when I need a tiny 
256MB RAM Server with <1GB/mo of data transfers)

thanks,
-Randy

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