Here's a breakdown of the major players in the external performance monitoring space:
Top Shelf
1. Webmetrics.com - largest network, great monitoring technology, fun UI
2. Keynote.com - focused on mobile, long time player in the space
3. Gomez.com - lots of different products, product life cycle focus
Middle
1. AlertSite.com - does a lot of things, nothing extremely well
2. Pingdom.com - popular in the web 2.0 world
3. site24x7.com - owned by zoho, cheap
Low End
1. mon.itor.us
2. siteuptime.com
3. dotcom-monitor.com
What you need to look for in deciding between the various options:
1. If you want to monitor a transaction, versus just a URL, you should try out the scripting technology to understand how easy/complicated it is to set up your monitoring.
2. The monitoring network, how many locations around the world you want to get performance metrics from.
3. The alerting options, how configurable the thresholds/escalations are.
4. The reporting, how useful the various reports/graphs are, and how much you can drill down into the nitty gritty.