It's definitely a good price for a manged dedicated server but keep an eye on the company/provider. You get what you pay for and there is a reason companies like serverbeach and rackspace and others in the upper tier do well. Of course not everbody needs what they have to offer so this may be a perfect solution for you.
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It is a good price. But the company track record is very important too. Other things to look for are the datacenter location, the uplink speed/bandwidth, the technical support provided and is there any other hidden price on top of the price you've quoted here.