Hosting a Minecraft server is a pretty good idea, and there are many VPS hosting services that offer this functionality. DotBlock and GoDaddy are two service providers that provide Minecraft hosting services.
Minecraft Server Hosting at DotBlock
DotBlock offers a Minecraft VPS Stack. This includes a pre-installed configured version of Minecraft Server and a fully licensed version of McMyAdmin. McMyAdmin is a powerful, easy-to-use web-based control panel that you can use to configure your Minecraft Server. There is no limit on the number of users playing on the server. The server itself comes with CentOS 6 (a Linux-based OS) and support software (Java, Bukkit).
Pricing depends on the plan chosen by the user or the subscriber. All plans have unmetered bandwidth, and the basic plan starts at $39.95 per month, with 3GHz processor speed, 3GB RAM, and a 40GB RAID-based storage solution. The highest plan comes with 19 blocks (54GHz processor, 54GB RAM, 380GB RAID based storage) at $719.10 per month.
MineCraft Server Hosting at GoDaddy
While GoDaddy does not provide a customized Minecraft solution, it does provide VPS hosting services that can be used to run a powerful Minecraft Server. Their plans begin at $29.99 per month (called Economy Plan), which offers a Linux/ Windows-based OS, 1GB RAM and 40GB storage space), and go on up to the Ultimate plan, which offers a Linux/ Windows based-OS, 8GB RAM and 240GB storage space at a price of $149 per month. You also have a choice between 3 operating systems for your server (CentOS, Fedora and Windows). GoDaddy also offers savings of 10% and 20% on 12 months and 24 months upfront payments, respectively.
Both DotBlock and GoDaddy offer excellent features at reasonable pricing. If you are a novice at Minecraft, going for DotBlock's pre-configured solutions would be a good idea. If you have an understanding of the configurations and would like to try your hand at manually customizing your Minecraft server up from scratch, you might want to take a look at what GoDaddy has to offer.