I am working on a project that will require for us to upload huge HD video files to a server. For simplicity, I was considering Managed Hosting at Rackspace with Cloud Files. However, the main work flow bottle neck would be the upload times. Our first batch of video is 30GBs, and with a single typical current uplink connection of 0.4MB/s that would take more than 20hours!. In other words, not efficient, not scalable. So I am considering co-locating on a nearby Datacenter (Peer1, Vancouver). The main advantage is that to upload huge files, I simply would drive to the datacenter and dump the video directly to the server. The problem is that I have never done co-location, I would need to buy the server, configure it, etc, etc. It seems like a lot of work and way more expensive.
What would you recommend? What are the pros and cons of managed hosting and co-location in your opinion?