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For those that haven't tried before, running your own XMPP server is incredibly easy on even a small VPS. I'd recommend ejabberd, its pretty solid, light weight and fast.

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I always suggest prosody :-) And we use this as our XMPP server cause its the modern way to use XMPP :)

I second the Prosody recommendation. I'm in the process of migrating my Jabber server to it, and it's quite slick.

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