Agreed. We do colocation for about 50 servers. Up front costs higher, long term costs MUCH lower - but man can it be a pain in the ass sometimes when there's a problem. :)
Here's one from a friend of mine: a hard drive just failed in the middle of a raid array. An OCD worker there decides that instead of just swapping out the dead drive, he's going to move all the drives up one slot and put the new drive at the bottom of the raid array. So instead of having 1 drive failure, the disk controller now thinks there are 3 drive failures which ultimately lead to data loss and his removal from employment.
