Thanks Lynn, Greg, & Steve. I think I see the error of may ways now. Let me define this a little more.
It is a single cluster environment (1 active, 1 passive).
It is about 90% OLTP (10% warehouse).
It has 2 instances with 150+ databases.
The total space consumed, excluding backups, is about 500 Gig.
Space is expected to grow at about a 500 Mb/day.
We expect to replace our hardware every 5 years.
Rack mount is definitely prefered.
Not concerned with SLA's at this point.
Backup replication & storage does not need to be considered in this purchase.
The majority of the growth occurs during normal U.S. business hours.
$200k is the very maximum. I would probably scale down from this.
Your are concerned with SLA or you wouldn't have a cluster.
2 Dell R910 with 256GB of RAM each (go with the lowest number of procs) add more later if needed
3 years of SAN space(reassess expected growth over time) depending on your infrastructure this could blow your budget or not be a factor.
Run raid 10 for all.
1TB of for the data lun
250GB for the Log lun
10 GB for SQL system (with MSDB moved to data and log luns)
20 GB for SQL TempDB
1GB for MSDTC LUN
1 Idera SQL Diagnostic Manager license