Web analytics/traffic reporting services

So, we’ve been struggling with huge log files from our blogs (our Engadget.com log file alone is hundreds of megs a day!), and we’ve come to the conclusion that we might be better off with one of these hosted traffic reporting servicesdespite the fact that they seem to be very expensive. Just running reports is killing our servers due to the large number of sites we run (over 50 blogs already), and the traffic they get.

Does anyone have experience with hosted traffic services and which ones are affordable, etc? Please post to the comment of contract me at jason <at> calacanis <dot> com.

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