Managed cloud at rackspace starts at $100 plus usage charges. Seems a bit high.

If managed, but unmanaged starts at $16.xx for 512MB and outbound traffic is at 0.12/GB I think

Except now rackspace is even more expensive than linode for certain uses as the 2TB of bandwidth free would cost you an extra $240 on rackspace cloud and because bandwidth is shared between all linodes this extra bandwidth can make a big difference.

If you are having 2TB BW then you would not host on linode or rackspace cloud, but take a dedicated server.