Take a look at this: www.kodingen.com The service like kodingen is excellent, is free and provides a 'omg' IDE and interface.
So this is what i feel of your service: Advantages: - Domain name and ip address will cost 1500 or so, thus 600 bucks is cost saving there. - Issue tracking system is very advanced and supports a lot of features. - An active project backend of redmine, so quite robust, RoR speed, REST API availability etc.
Disadvantages: - as a corporate client (who will most likely pay for stuff like these) I would not want my source code to be on a 3rd party system. And independent developers would most likely not pay up for such service, students of all. - problem of editing and committing on repository is a problem, you have to do it from another place (terminal, some repo workbench or eclipse) (please tell me if your system has facility for committing from browser) This makes the service look useless at times and makes the process cumbersome. This has been a major roadblock for me in using redmine, it slows down the pace of work.
But still an awesome idea to commercialize it.