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Re: DNS issue?
I think the difference it makes (in speed) increases the further you get away from London. VM's advantage is having local DNS caches around the country in each part of their network - external providers such as Google or OpenDNS don't. Hence if you're in South-East England, you're looking at maybe 3-5ms to VM's nearest DNS servers or 5-10ms to everyone else's in London. In Scotland you're looking more like 3-5ms to VM's nearest DNS servers or 15-20ms to London.
As for outages, can't say I notice them much, but admittedly during the years I was with VM I usually had Google DNS set anyway mainly because it was just easier to remember when entering network settings by hand!
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