We have two new database servers and two new webservers on their way, as well as a new Cisco switch to replace our current shoddy backend network. (the switch was delivered today but since they bumped me on my flight back from the Webby Awards I wasn't here when the FedEx person delivered it). In total, this is about $14,000 worth of new hardware.
It had been awhile since we bought new servers .... it was our mistake for not getting them earlier before we ran into problems again.
I can give a dozen excuses why we didn't get new ones earlier but they're all pretty pathetic ... the most pathetic being that I always use the fast paid-user server so I never noticed things getting slow. :-)
Although I haven't benchmarked it yet, the design of S2 (the new style system) is such that it should be much faster. The current style system was a hack that's persisted from the days when 5 friends and I used LiveJournal ... it was never meant to last this long.
Anyway, our apologies for not being perfect. One day, perhaps. At least it's getting easier... It's nice to be able to buy new servers and just discover you already have the money for them.